First and foremost, we extend our heartfelt condolences for your loss. Dealing with the complexities of property ownership during such a challenging time can be overwhelming. You may find yourself wondering, “I inherited a house, but what should I do with it?” Should you rent it out, or should you sell it? If selling is the route you choose, how should you go about it? There are indeed numerous options available to you, but fear not, as we are here to provide guidance. You don’t have to navigate this difficulty journey alone, we can provide you with resources and assistance to help you when you’ve inherited a house and are unsure what to do or where to go next.
We are seasoned and knowledgeable real estate professionals in the great New Orleans area real estate market and are actively seeking to purchase houses each month in the New Orleans area. We frequently receive inquiries from individuals just like you who have inherited properties and are contemplating selling. In this article, we aim to offer valuable tips to assist you in navigating this process effectively.
The First Steps to Take When You Have Inherited a House
Navigating the intricacies of inheriting a house involves several crucial considerations. Here are some essential steps to help you make informed decisions:
1) Ensure the Mortgage is Settled
The first step, albeit obvious, is to confirm the status of any existing mortgage on the property. If the deceased individual had a mortgage on the property (unless it was completely paid off, which is advantageous), you will need to address it if you intend to retain ownership. Some banks may permit you to assume the existing loan, while others might require you to refinance with a new loan. If you find it challenging to qualify for a new loan, keeping the property or renting out the property may not be a viable option.
2) Assess Your Property Management Capability
Property management entails dealing with brokers, maintenance, tenant matters, rent collection, and the various nuances of property ownership. If these responsibilities do not align with your expertise or time availability, consider hiring a professional property manager or contemplate selling the property promptly. While retaining and renting the property can be a lucrative strategy, it necessitates the ability to manage the property effectively, including addressing the challenges that may arise with tenants and property maintenance. Not everyone wants to be a property manager or is capable of handling the responsibilities of a property manager, and that’s okay.
3) Be Prepared for Ownership Costs
It’s relatively uncommon to inherit a property that requires no significant maintenance or improvements. Most inherited houses tend to need substantial upgrades to meet today’s standards, preferences, and expectations. To gain clarity on the necessary improvements and their associated costs over the next five years, consider enlisting the services of a professional property inspector such as a licensed home inspector. These inspectors are trained to search for all of a property’s existing and potential damages. Unexpected repairs and renovations can prove to be financially burdensome if not accounted for in your planning.
4) Selling Costs and Alternatives
Opting to sell a property for its maximum market value often entails additional expenses, including repairs, kitchen upgrades, landscaping enhancements, and overall property improvements. If you prefer to bypass these tasks, we offer an alternative solution – we purchase greater New Orleans area houses for cash in their current condition, eliminating the need for costly preparations and expenses.
5) Analyze the Market
Consider the long-term prospects of your property within the context of the real estate market. We can assist you in evaluating your property’s current as-is value and its potential as a rental investment, if applicable. If you have alternative investment opportunities that promise higher returns than real estate, it’s prudent to explore them. However, if the local real estate market is on an upward trajectory, listing the property on the open real estate market or retaining the property can be a rewarding investment strategy, provided you can decipher market trends effectively.
6) Be Mindful of Tax Implications
Before making any decisions, consult with tax and legal professionals to gain a comprehensive understanding of the tax implications associated with your inheritance. Ownership of an inherited property can result in significant property and income tax consequences, which can substantially impact the overall cost of maintaining the property.
7) Explore Diverse Options
In certain circumstances, we can assist you in structuring a lease-option agreement that allows you to simultaneously rent and sell the property, providing you with the best of both worlds. While such arrangements can be intricate, our experience in New Orleans area investments can help you navigate them successfully.
8) Compare Scenarios
All of this sounds a bit intimidating? No worries. We at REvitalize Property Solutions want you to be well-informed of all of your options. We do not use tricky tactics to sway you one way or the other. The ultimate decision is completely yours. We offer valuable insights into the potential outcomes of various scenarios related to your property. We can help you determine the current market price if you were to sell the property as-is, the highest possible market value with necessary improvements, and the projected value if you opt to retain it as a rental property, along with the associated costs.
In conclusion, inheriting a house can be a complex and emotionally charged experience. However, by following these steps and considering your options carefully, you can make informed decisions that align with your financial goals and circumstances. And if you ever need any assistance or just have a few quick questions, reach out to us. At our company, we are fully transparent in all that we do. We give truthful and honest answers to all of your questions so that you are well-equipped to make the decision that best suits your specific needs.
To learn more about who we are, what we can do for you, and why we do what we do, give us a call or fill out the form on our website. We look forward to hearing from you!