Are you now the surprised owner of a second home? If your parents or loved ones left you a home and just passed away, we’re sorry for your loss.
Depending on the situation though, we’re happy for your gain. Gaining a new asset (that’s hopefully paid off) can be a new source of income for your family.
That is if you keep the inherited home. You have other options for it as well. Rent it out, sell it, treat it as a vacation home, all the options are there.
Having options is nice, but inheriting a home isn’t as simple as replacing the key. There are taxes, debts to settle, and upkeep.
Learn all about the details below.
Your Inherited House Options: Moving In
Are you in love with your inherited home? Great! You should move into it. If you have the resources and the ability to move your motley crew, living in an inherited home can save a lot of money.
That is unless there are higher payments to make on the inherited house than where you’re currently living. One can hope that the mortgage is completely paid off and that all the debts are paid.
Your lawyer will go over this information with you when they explain your inheritance.
Complications: Taxes
Not all people are flush enough to leave you a house Scott free. In some cases, that’s okay. There are benefits to inheriting a house!
Tax-wise, the government treats inherited homes like it does inherited stocks, with lower taxes.
However, that doesn’t mean you’re tax-free altogether. Depending on your current situation, you could pay more in taxes for an inherited home than you’re used to.
Siblings
Did your loved one leave a house to you and your siblings? It’s not like you can cut it down the middle!
Figuring out what your sibling wants to do with the asset is easy – it’s the agreeing on a plan of action that’s hard.
Debt
What happens if there’s still a mortgage or money owed on the house? Congratulations, new owner, it’s now all on you!
If a house isn’t paid off and has a good amount of money to go, most people sell it and use the profits to pay off the debt. Hopefully, you can still make some profit.
Option 2: Renting
Your second option, should you choose not to move in, is to rent the property out for a profit. This means you get extra money every month, but it takes a lot of work to get it ready.
For example, are you ready to go through every drawer and cabinet in the entire house? If you rent out the property, everything has to go.
You can leave some things, like a table and chairs, some pots and pans and call the home “semi-furnished”.
That faces you with a houseful of stuff, still. What are you going to do with all your loved one’s worldly possessions? Sell them? Donate them?
Someone’s going to have to go through it all. What about the things with sentimental value that you want to keep? How do you get those from point A to point B?
You can’t exactly fly your mother’s vanity table with you on Southwest.
Complications: Property Managment
Once you clear the house of stuff, you’re faced with your next challenge. Are you close by enough to be a landlord? How much should you charge for rent? Utilities?
If you’re not close by, the easiest thing to do is to hire a property manager. These people are experienced in handling the day-to-day problems with renting properties.
You do have to pay them, which can be anywhere from 10-20% of rent. Assuming the house is already paid off, that’s not too bad – you’re still making a profit!
Option 3: Selling
If neither of the first options seems right for you and your situation, you can always sell your inherited house. You are the rightful owner, as long as the will stands, so you can sell the property.
Like renting it out, you’ll still have to clear out all your loved one’s belongings. When you sell a house you’re not supposed to leave furniture around – the buyer can imagine themselves in that house better with empty rooms.
If you choose to sell the house in a classic way with a realtor, you’ll be on the hook for closing fees and their percentage. Whatever repairs and updates need to be done before selling come out of your pocket too.
Option 3.5
You don’t have to sell your house in the traditional sense, where it goes from one family to another. There’s a quicker and more streamlined option.
You can sell your home to an organization who buys houses for cash. This way you don’t have to mess with a realtor and you can skip any extraneous fees.
Some home buying companies will buy a home in any condition, so you’re off the hook for repairs too.
The best part? These people and companies buy homes FAST.
Moving Forward
Hopefully, this guide on what to do with an inherited house helped you figure out your course of action. Do you have a better idea of what you’re going to do now?
We hope so. If you need to talk to someone about the prospect of selling but aren’t sure you’re ready yet – our team will talk to you. Let them know you’re exploring your options and there won’t be any pressure.
We’re here for you, not the other way around. Talk to someone about what your home is worth today!
Call us at Bonnie Buys Houses Fast. (719-659-9979) We will help you navigate the ins and outs to help you sell your inherited house. We will provide you with a win-win solution to help you sell your house
