First, we’re so sorry for your loss. This can be a very challenging time for many reasons, and dealing with property ownership is tough at the best of times.
You’re thinking, “I inherited a house, what to do with this house?” Should I rent it? Should I sell it? How should I sell it?
the great thing is that you have a ton of options open for you, but…
… we can help.
I’m a seasoned investor in Renton real estate, and i’m looking to buy several houses each month in the Renton WA area. Every month we get calls from those who have inherited a house and are looking to sell the house. So the info below are some tips to help you navigate the process.
I Inherited A House, What To Do Next?
Here’s a few important considerations to help you make the right decision:
1) Make sure the mortgage is paid.
This may sound obvious, but if the person who left you a property also had a mortgage (unless it had no mortgage and was paid off, which is great!), you have to pay it (assuming you want to keep the property). Some banks will allow you to assume the loan, while others may force you to refinance into a new loan. If you don’t qualify for a new loan, renting may not be an option for you. If that is the case please submit your information and lets go over some creative finance options for you.
2) The investment is only as good as the manager.
If dealing with brokers, maintenance, tenants, rent collection and all the nuances of property management isn’t the best use of your time, hire a professional to help you or cash out now. Some people who inherit homes decide to keep the house and rent it for extra income. That’s a great strategy for sure. You just need to be prepared to manage the property and the hassles that can go along with tenants and toilets. You should also keep mind rental rights the tenants have on your property. When they don’t pay you can’t just remove the tenant its a process that can drag months to years if the tenant is savvy enough. If your dealing with a difficult tenant fill out the questionnaire i’d love to discuss some tricks to the trade. Depending on their circumstances it could save you a ton of money on legal fees.
3) Property ownership costs money.
Its rare that a property is inherited in perfect condition. In order to improve the value of the house before you rent or sell at max value there’s going to be minor work that needs to be done which indeed cost money. You also have to be prepared for property taxes. with the Seattle market increasing in value every year the property taxes will continue to rise as a result.
4) Selling a property for top dollar costs money.
Depending on the condition you inherited the property in and what year the house was built will definitely help you determine exactly what route you want to take. For instance if its a older home and the relative lived their for some time you can already expect to spend 20k-50K in renovations to get the max value from the property on top of property taxes. This where I come in… Alot of people don’t want the hassle or have the money for the renovations. Here at Buckley Buy Houses We buy Renton houses for cash, as-is no renovations needed in as little as 14 days.
5) If the market will continue to grow faster than your other options, hang on to the investment.
We can help you analyze the value of your property today versus the long-term benefits of renting. If you can use the equity in your property in another way that outpaces the performance of the real estate market, you should. If you don’t have anything better to do with the money and the neighborhood is rising in value, hang on – real estate can be a great investment if you know how to correctly read the market.
6) Uncle Sam wants a piece of the action.
Don’t forget to discuss your inheritance with tax and legal professionals before you take action. There are major property and income tax consequences that will dramatically impact the cost of owning your investment.
7) Consider all your options.
In certain situations we may be able to help you structure a lease-option agreement that allows you to rent and sell at the same time – capturing the best of both worlds. These kinds of deals can be complicated, but our Renton investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Renton – if you sold it today without doing any work, the highest price the market will bear, and the projected value of keeping it as a rental (along with the costs).