First and foremost, if you’re reading this post we want you to know we’re sorry for your loss. Dealing with property issues is stressful in the best of times, and after the loss of a relative it’s even worse. If you’ve inherited a home you can’t decide what to do with, we want to help you by providing some options and resources to get you through this time.
We’re investors in Wichita with over 15 years of experience, and we routinely purchase several houses every month in the Wichita area. We often get calls from those who have inherited a house and are looking to sell. So the information below is designed to help you navigate the process.
I Inherited A House, What Now?
Here’s a few important things to consider to help you make a decision:
1) Make sure the mortgage is paid.
This may sound obvious, but if the person who left you a property had a mortgage you have to continue to pay it 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.
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 can be a great option. You just need to be prepared to manage the property and the hassles that can go along with tenants and unexpected maintenance.
3) Property ownership costs money.
It’s rare to find a home that’s been perfectly maintained. Most inherited houses need major improvements.
Consider hiring a professional property inspector to give you a detailed rundown of what you’ll need to do within the next five years, along with estimated costs. Surprises can be expensive.
4) Selling a property for top dollar costs money.
If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy Wichita houses for cash, as-is.
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) Compare a few scenarios.
We’ll help you determine prices for any property near Wichita. 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).