First and foremost, please accept our sincere condolences for your loss. We understand that this is a challenging time, and managing property ownership can add to the complexity of the situation.
If you find yourself asking, “I have inherited a house, what should I do with it?” – whether to rent it out or sell it, and how to go about selling it – you are not alone.
While there are numerous options available to you, navigating them can be overwhelming.
Fortunately, we specialize in investing in real estate in Massachusetts and are actively seeking to purchase multiple properties each month in the Massachusetts area. We frequently assist individuals who have inherited a house and are considering selling it. Below, you will find some valuable tips to help guide you through the process.
I Inherited A House, What To Do Next?
Here are some key factors to consider to guide you in making an informed decision:
1) Make sure the mortgage is paid.
It is important to note that if the previous owner of the property had a mortgage (unless it was fully paid off), you will be responsible for handling it if you wish to retain ownership. Certain banks may permit you to take over the existing loan, while others might require you to secure a new loan. In the event that you are unable to qualify for a new loan, renting out the property may not be a feasible option for you.
2) The investment is only as good as the manager.
If you find that managing brokers, maintenance, tenants, rent collection, and the complexities of property management is not the most efficient use of your time, it may be wise to enlist the services of a professional or consider selling your property now. Some individuals who have inherited properties opt to retain ownership and lease them out to generate additional income, which can be a smart financial move. However, it is essential to be ready to handle property management responsibilities and potential challenges associated with tenants and property maintenance.
3) Property ownership costs money.
Discovering a property that has been meticulously maintained is a rare find. In most cases, inherited homes are in need of considerable upgrades.
Our suggestion is to engage a proficient property inspector to conduct a thorough evaluation of the essential repairs and remodels required in the upcoming five years, along with projected costs. Unanticipated issues can lead to significant unforeseen expenses.
4) Selling a property for top dollar costs money.
If you’re looking to avoid the hassle of repairs, kitchen updates, landscaping improvements, and general cleanup, there’s no need to stress. Our team specializes in purchasing houses in Massachusetts for cash, just as they are.
5) If the market will continue to grow faster than your other options, hang on to the investment.
Let us assist you in evaluating the current worth of your property compared to the advantages of renting it out over time. If there are more profitable opportunities to leverage the equity from your property compared to the real estate market’s returns, it’s worth considering. However, if you have no superior investment options and the local market is appreciating, holding onto your property can prove to be a lucrative investment provided you can accurately interpret market trends.
6) Uncle Sam wants a piece of the action.
Make sure to consult with tax and legal experts regarding your inheritance before making any decisions. There are significant property and income tax implications that can significantly affect the expenses associated with managing your investment.
7) Consider all your options.
Explore the possibility of a lease-option agreement with us to seamlessly rent and sell your property concurrently. Benefit from the advantages of both options with our expertise in Massachusetts real estate investments guiding you through the process.
8) Compare a few scenarios.
Let us assist you in evaluating property prices in the vicinity of Massachusetts – including the current market value if sold as is, the potential maximum selling price, and the estimated rental value (taking into account associated expenses).