Losing a loved one is a difficult. There are many decisions that need to be made during the process, which is not easy when dealing with grief. For many, the process of losing a parent or family member involves inherited property. While your loved one most likely willed you their property to help provide for you and leave you an inheritance, it can be overwhelming to figure out what to do with it.
Here are 5 options that you have with inherited property.
If you are the sole inheritor, the house is paid off, and you want to take ownership you can move right in. You could be responsible for inheritance tax and will need to pay the property taxes going forward. But, that is a small price to pay for a whole house.
Many times there are great family memories held in the home of the deceased and moving in can be a great comfort. However, if you are not the sole heir of the property you will have to get the other heirs to agree to sell you there share of the property.
If you don’t want to move into the house, but aren’t ready to let it go, you could become a landlord. The inherited property can make a great investment.
This is a decision that should be made carefully though. While the extra income from the monthly rent is nice, there are a number of expenses that come from owning a rental unit.
You will also be responsible for being available for any emergency maintenance needs. If you want to own the property, but don’t want to handle the day to day activities of being a landlord you can work with a property management company.
Sometimes inherited houses need work. If that is the case with your inherited property it could make a great house to flip.
Take the time to have a home inspector come to your property. They will be able to help you identify any areas of the home that need to be repaired or changed from a safety standpoint.
Along with making those changes you can update the house so it will appeal to the current market of buyers. Once the work is complete have a home stager come in and stage the property to help your real estate agent make a quick sale.
If the house is already in great condition, or you don’t want to invest the time and money into the house to fix it up, you can sell it as is. Working with a real estate investor who can purchase the house as is with cash can be a great solutions for selling and inherited property. This is a nice option when you don’t want to worry about home inspections and appraisals and just want to get the house sold.
There are some cases when you might want to refuse the inheritance. If the current mortgaged amount and taxes or liens add up to more than the value of the house you will most likely want to refuse the property. Choosing to accept it you will take on the financial responsibility, which could put you in debt. If this is not a situation you want to be in you can simply refuse to accept the inheritance.
Losing a loved one is never easy, and the situation can become more complicated when you inherit a property. It is wise to hire professionals to help you through the process, such as an attorney and tax advisor. Making big decisions during a time of grief can be very difficult, so do not rush into a decision.