First, we’re so sorry for your loss. This can be a very challenging time for many reasons, and dealing with property ownership is tough at the best of times.
You’re thinking, “I inherited a house, what to do with this house?” Should I keep it? Should I rent it? Should I sell it? How should I sell it?
Tons of options open for you, but we can help…
We’re seasoned investors in Metro Detroit real estate, and we’re looking to buy several houses each month in the Metro Detroit Michigan area. Every month we get calls from those who have inherited a house and are looking to sell the house… so the info below are some tips to help you navigate the process.
I Inherited A House, What To Do Next?
Here’s a few important considerations to help you make the right decision:
1) Make sure the debt is paid.
Inheriting a house can be an exciting experience, but it also comes with some potential challenges. One of the first steps you should take when inheriting a house is to pay off any outstanding debts that may be attached to the property. This could include mortgages, taxes, or other liens on the property that need to be cleared up before selling it. Paying off these debts will ensure that you don’t end up in hot water after closing and can get top dollar for your inherited home.
2) The investment is only as good as the manager.
Dealing with the various aspects of property management can be a difficult and time-consuming task. Brokers can be difficult to work with, as they may not have the same priorities or expectations as the property owner. Maintenance issues can arise which require prompt attention, often at an unexpected cost. Tenants are often demanding and need to be handled in a way that satisfies both parties. All of these aspects need to be managed effectively to maintain the value and condition of the property. Some people who inherit homes decide to keep the house and rent it for extra income. That’s a great strategy for sure. You just need to be prepared to manage the property and the hassles that can go along with tenants and toilets. 🙂
3) Home ownership costs money.
When selling a home, it is always best to hire a professional contractor to give you a list of necessary repairs. They will have the experience and knowledge to be able to spot any issues that could lead to major problems when you are ready to sell your house. Furthermore, having an experienced contractor provide you with an in-depth list of repairs can make your home more attractive to buyers. In addition, you can use the list as a bargaining tool when negotiating with potential buyers. Finally, it is important to note that some repairs may be necessary before you can put your home on the market, so having an experienced contractor handle those tasks can help save time and money in the long run.
4) Selling a property for top dollar costs money.
To maximize the sale price of a property, certain investments and expenses must be made to make it more appealing and marketable. These costs include things like staging the home, making repairs or renovations, hiring professional photographers to take pictures of the listing, as well as advertising and marketing efforts. All of these activities come with their associated fees which need to be taken into consideration when deciding how best to sell your property for top dollar.
If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy Metro Detroit 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 in Metro Detroit
7) Consider all your options.
In some situations we may be able to help you structure a lease-option agreement or seller financed deal that allows you to rent and sell at the same time – capturing the best of both worlds. These kinds of deals can be complicated, but our Wixom investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Wixom – 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).