In our business of buying and selling houses, we come across a ton of people that have inherited properties. Often, these folks are clueless as to what their options are. Dealing with the emotions are hard enough, but not knowing what to do with the subject property can be burdensome.
Even though we believe that you shouldn’t make a rash decision on that to do with a loved one’s property after passing, eventually you will have to make a decision that’s best for your individual situation. As we see it, there are three options:
- Move into the property
- Rent it out
- Sell it
If you currently do not own a home, it may at the time seem like a good idea to move into the property. However, things can get a bit complicated if there are siblings or relatives involved.
Let’s say you’ve inherited a property and have 3 siblings. This would leave you two options. Sell the property and split the proceeds, or rent it out.
At the time, renting the property may seem attractive. However, we recommend doing a good amount of research on what goes into being a landlord. There’s an entire laundry list of responsibilities you’ll be taking on. This can become costly and time-consuming.
Selling could be the right idea if you’re in need of cash OR there’s an estate that needs to be settled. Most of the time we see that debt has been left behind by the deceased. In this case, it may be most beneficial for the property to be sold and the debt settled.
Additionally, if you sell the house even if it appreciated significantly since the deceased purchased it, you are not responsible for capital gains tax because the property’s tax basis is “stepped to market value” at the date of death.
You should also find out if there are any liens or mortgages on the property. If there are, the estate will have to settle them. If you keep the property, you’ll ultimately be responsible for this debt. If you sell, the debt will come out of the proceeds at closing.
On top of any debt that remains, owning a home can be expensive. You have to account for property taxes, homeowners insurance, liability insurance, heating, electricity and general wear and tear that can create a huge hole in your finances.
Lastly, you could find yourself dealing with both emotional and physical baggage. By that, I mean not only all the possessions that are in the home but sentimental things that other siblings may want to lay claim to.
When prepping a home for sale or new tenants, it can also be emotionally difficult to move certain personal belongings of a loved one who’s passed.
We’ve so often heard that inheriting your parent’s house almost always brings up all the horrors associated with their passing. That’s why many people cannot bring themselves to clear out and sell houses they have inherited.
Many families find they cannot deal with the stress that comes with cleaning out inherited properties, so they do nothing, which in the long run can cost them thousands. Properties need maintenance. If a family chooses to let a property sit up and neglect it, this can cost big time when they decided to sell. We highly warn against long-term non-action. Not selling and or not taking up residence makes for increased maintenance and insurance costs without much to show for them, and the financial stress adds to the emotional stresses involved.
How can Irby Homebuyers help?
Our team purchases hundreds of houses per year, many of which have been inherited. We have a unique understanding of what you are going through, and have a solution to help!
When you’re looking to sell a property there are some questions you’ll need to think about….
What repairs do I need to make to this old house?
With Irby Homebuyers, you’ll have to make ZERO repairs. We purchase ever property as is, saving you thousands of dollars in repairs from deferred maintenance.
Do I need to have the home put through probate court?
Not always. But sometimes you’ll need to hire a lawyer, set a court date and drag all the involved parties down for the proceedings.
With Irby Homebuyers, we’ve created a quick and easy process to help you navigate through these waters as effectively as possible and most of the time even avoid having to hire a lawyer and or go to court.
What if I don’t have the money to pay closing costs?
We take care of all closing costs associated with the selling of the property.
What if the house is full of unwanted belongings?
That’s not an issue. We work closely with several local charities. Please removed what you want and leave the rest. We will make sure it gets donated.
If you’d like more information on how we can help you with burdensome inherited properties give us a call today