First and foremost, please accept our heartfelt condolences for your loss. The current economic climate is particularly harsh, and dealing with property ownership is difficult even in the best of circumstances.
You’re wondering to yourself, “I’ve inherited a house; what should I do with it?” Should I buy it or rent it? Should I put it up for sale? What method should I use to sell it?
There are numerous solutions available to you, but…
… we can be of assistance.
We’re seasoned real estate investors in the Atlanta area, and we’re looking to buy a few residences each month in the Atlanta, Georgia, area. Every month, we receive phone calls from people who have inherited a home and are trying to sell the property… therefore the information provided below will serve as a guide to assist you in navigating the procedure.
What Should I Do If I Have Inherited a House?
Here are a few crucial aspects to keep in mind as you try to make the best selection possible:
1) Make certain that the mortgage is current.
Even though it may seem obvious, if the person who left you a property also had a mortgage (unless the property had no mortgage and had been paid off, which is fantastic! ), you are responsible for repaying it (assuming you want to keep the property). Although some banks will enable you to take over the loan, other institutions may require you to refinance into a new loan. Unless you qualify for a new loan, renting may not be an option for you in this situation.
2) The quality of the investment is only as excellent as the quality of the management.
You may either employ a professional to assist you or cash out immediately if you feel that dealing with brokers, maintenance, renters, rent collection, and all of the other complexities of property management is not the greatest use of your time. Some people who inherit homes choose to maintain the property and rent it out to generate additional money. That is, without a doubt, an excellent strategy. Everything else is up to you; you just have to be prepared to deal with the management of the property and the problems that can come with having tenants and toilets.
3) Owning a home is an expensive endeavor.
It’s uncommon to come upon a building that has been meticulously preserved. The majority of inherited homes require extensive renovations.
Consider hiring a professional property inspector to provide you with a full report on what you’ll need to accomplish in the next five years, as well as an estimate of the costs involved in each project. Surprises are extremely pricey, to say the least.
4) It costs money to sell a home for the highest possible price.
Don’t be concerned if you don’t want to deal with the hassle of fixing things, updating kitchens, improving landscaping, and general cleanup. We buy houses in Atlanta for cash, in their current condition.
5) If you believe that the market will continue to rise at a quicker rate than your other possibilities, hold on to your money.
We can assist you in determining the current value of your home in comparison to the long-term benefits of renting. If you have the opportunity to leverage the equity in your home in a way that outperforms the performance of the real estate market, you should do so. In the event that you do not have anything better to do with your money and the neighborhood is increasing in value, hold on – real estate can be a profitable investment if one knows how to analyze the market correctly.
6) Uncle Sam is interested in getting a piece of the action.
Keep in mind that you should consult with tax and legal authorities before taking any action based on your inheritance. There are significant property and income tax ramifications that will have a significant impact on the overall cost of owning your investment.
7) Think about all of your possibilities.
For example, in certain circumstances, we may be able to assist you in structuring a lease-option agreement that allows you to rent and sell at the same time, allowing you to benefit from the best of both worlds. Even though these types of transactions might be challenging, our investment expertise in Roswell can assist you in succeeding.
8) Make a comparison between a few different circumstances.
We’ll assist you in determining the value of any property in the Atlanta area — the amount it would fetch today if you sold it immediately without completing any work, the highest price the market will bear, and the predicted value of maintaining it as a rental property (along with the costs).