When a loved one passes away, you may inherit their house either to do as you please with, or share proceeds or income with co-heirs. Dealing with a house that was inherited can be emotional and also complicating when it comes to finances. Even if the house was paid off you need to be sure that there wasn’t a reverse mortgage.
There can also be various state and federal taxes that you have to deal with when inheriting a property and those taxes can be a financial burden. You will also have to consider what to do if the house needs major repairs or updates. Then there is dealing with the inheritance between family members which can be a stressful situation as well.
So how do you decide what to do and how to handle these matters when you have inherited a property?
First get an assessment of what you are dealing with. Work with a financial adviser and a real estate expert in the local market. The real estate expert can help you to determine the fair market value as is, if the house was updated/repaired and of the income potential the house has if you are considering keeping it and renting it out in a good rental market.
Before even considering any repairs or updates the house will need to be cleaned out of all of the relative’s personal possessions. You do not want to show a house to potential buyers that is full of stuff that you will just be getting rid of anyways.
The condition of the house and what repairs will need to be done. If the house is older and the owner had it for a long time, it may need work. Ideally you would want to do the minimum amount of work needed to make sure it sells. If it’s a booming market, it may be worth doing some extensive updating depending on what full market, updated/repaired value can bring to the table. If you decide to rent out the house obviously repairs are going to be needed. The real estate expert and your financial advisor will help you to determine which course of action is the best to take and works best for all parties involved.
If you need to sell an inherited house fast and are unable to afford the cost of financial advisors, real estate agent commissions and repairs, you may want to consider working with a sell my house fast investor to purchase the inherited house outright. This may alleviate some financial burden that you may have from inheriting a house.