It is a fact that, at some point in time, many of us will receive that phone call. The call that announces a death. Not just any death—a death in the family. And perhaps, among the sadness and grief, you also find out that you have inherited a home from the deceased. What are you going to do now?
Do you keep it and move into it? Do you rent it out or sell it? This can certainly be a difficult question to answer—one that should not be made without expert advice, as there are a lot of financial, legal, and technical implications to consider when making a decision about an inherited property.
Following are options you may want to consider:
Fix up and sell the property.
You may find that selling the property is a good way to handle the situation and to make some money on the property. If the property has not been maintained, it would be to your advantage to make repairs before you put it on the market to sell. You may want to consider hiring a home inspector, contractor, and real estate agent to ease the evaluation, repair, and selling process. However, if the costs of repair outweigh the amount you could make to sell, you do have other options.
Sell the property “as is.”
If you are not up to investing your energy, time, and money into making repairs to the property, selling a home “as is” is another option. In this option, the heirs will remove everything from the home they wish to use, sell all the remaining belongings in an estate sale, then clear out the house and take bids from developers or house-flippers. This is where a partnership with Class Act Property Solutions can be the perfect solution for you. Our mission is to purchase distressed properties “as is,” and rehabilitate and transform those properties into beautiful homes.
Keep the property and rent it out.
There are pros and cons to owning a rental property. This is a good option to earn consistent income when the monthly rent you charge exceeds that of the mortgage, taxes, insurance, and maintenance needs of the property. However, rental properties do require maintenance and management. Make sure to research what it takes to own and manage a rental property before you make the decision to be a landlord.
Keep the property and live in it.
Ideally, the property will be paid off when it is inherited, and you would be the sole heir. In that case, you will only be responsible for the property taxes, inheritance taxes, insurance, and any repairs you want to make. However, if you are not the sole heir, you will need to work through compensating other heirs.
The answer that is right for you may be clear, or you may need to consult with experts, friends, or family to make the best decision for your situation. Whatever you decide, do your best to make your decision based on emotional and financial repercussions. Your deceased family member meant the property to be a gift to you, rather than a burden—so do what makes sense for you and your situation.
If you live in Johnson or Wyandotte counties in Kansas, contact Class Act Property Solutions to discuss your options. With our knowledge of the business and network of resources, we will be able to assist you with a wide variety of real estate decisions, including that of your inherited property.