Dealing with a property can be hard enough but losing a loved one is even harder. If you have inherited a house you may have a ton of questions swirling around in your head.
You might be wondering: “Ok, my parent left me this house. Now what do I do with it? Do I rent it? Or sell it. What are all of my options?”
There is definitely a lot to think about but, fortunately, we can help.
We are a trusted home buyer in the Dallas TX area and were are constantly looking to purchase houses. Every month we aim to buy up to 10 houses. Believe it or not, we get calls every month from people who have inherited houses not sure of what to do next. From having so many of these conversations we have come up with some tips that will help you navigate the process.
I Inherited A House, What To Do Now?
Here’s a few important considerations to help you make the right decision:
1) Is There Still A Mortgage On The House? Find Out ASAP.
You probably are already aware of this one but I have to mention it, but if the person who left you a property also had a mortgage YOU will be responsible for it IF you want to keep the property. Depending on the bank, you may be allowed to assume the loan. Some banks will require that you refinance into another loan. If you don’t qualify for a new loan then renting as an option is pretty much out.
2) The Investment Is Only As Good As The Manager.
If dealing with brokers, maintenance, tenants, rent collection and all the minutia of property management isn’t for you, you can hire a professional to help you or cash out and sell the property. Some people who inherit homes decide to keep the house and rent it for extra income. It’s an excellent ideal. Be warned though. I’ve seen MANY people who completely underestimated the work it takes to be able to manage the property adequately. They weren’t ready to deal with tenants or calls about broken toilets.
3) Owning A Property Costs Money
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements.
A good property inspector will let you know what you need to do to maintain the property over the next few years, along with estimated costs. Remember, what you don’t know CAN hurt you. The pain is usually felt in your wallet.
4) It Costs Money To Make The Most Possible Profit From Selling
If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy Dallas TX houses for cash, as-is.
5) If The Market Is Surging, You May Want To Hold On To The House
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) Don’t Forget About Taxes
Take the time to talk about your inheritance with tax and legal professionals before you do anything. There are usually major property and income tax consequences that will dramatically impact the cost of owning your new house.
7) Consider All Options.
We are pros at coming up with creative solutions that will help you in your exact situation. Give us a call today and we can figure this thing out – together.
8) Compare The Options
We’ll help you determine prices for any property near Dallas TX if you sold it today without doing any work, the highest price the market will allow and the projected value of keeping it as a rental including any and all costs.