First, we’re so sorry for your loss. This can be a very challenging time for a number of reasons, and dealing with property ownership is hard even at the best of times.
You’re thinking, “I inherited a house, now what should I do? Should I rent it or sell it? And how should I sell it if I do?
There are tons of options available for you, however…
… we can help.
We’re experienced investors in San Antonio real estate, and we’re looking to purchase several homes every month in the San Antonio Texas area. Every month we get calls from people that have inherited a house and are looking to sell it… so the following information includes some tips to help you navigate the process.
I Inherited A House, What To Do Next?
Here are a few important factors that will help you to make the right decision:
1) Make sure the mortgage is paid.
This might seem obvious, but when the person who left you a property also had a mortgage (unless there was no mortgage and has been paid off, which is great!), you need to pay it (presuming you want to keep the property). Some banks will let you assume the loan, while others might force you to refinance into a new loan. If you’re not eligible for a new loan, renting may not be an alternative for you.
2) The investment is only as good as the property manager.
If dealing with brokers, tenants, rent collection, maintenance and all of the nuances of property management is not the best use of your time, hire a professional to assist you or cash out now. Some people who inherit houses opt to keep the home and rent it to get extra income. That is a good strategy for sure. You just have to be ready to manage the property and the all the hassles that go along with tenants and toilets.
3) Property ownership costs money.
It’s rare to find a property that’s been perfectly maintained. The majority of inherited houses need big improvements.
Consider hiring a professional property inspector to provide you with a detailed rundown on what you’ll need to do within the next five years, together with projected costs. Surprises can be very, very expensive.
4) Selling a property for top dollar will cost you money.
If you don’t want to have to deal with making repairs, improving landscaping, updating kitchens, and overall cleanup, do not worry. We buy San Antonio houses, as-is, for cash.
5) If the market continues to grow at a faster rate than your other options, hang on to the investment.
We can help you examine the value of your property now versus the long-term benefits of renting. If you’re able to use the equity in your house in another manner that outpaces the performance of the housing market, you should. If you do not 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 are aware of how to correctly read the market.
6) Uncle Sam is going to want a piece of the action.
Do not forget to talk to legal and tax professionals about your inheritance before you take action. There are major real estate and income tax consequences which will dramatically affect the cost of owning your investment.
7) Consider all your options.
In certain situations, we might be able to help you structure a lease-option agreement that allows you to rent and sell at the same time — catching the very best of both worlds. These kinds of deals can be difficult, but our San Antonio investment experience can help you win.
8) Compare a few scenarios.
We will help you determine the price of any property near San Antonio – if you sold it today without making any repairs, for the highest price the market will bear, and the projected value of hanging onto it as a rental (along with the costs).