Inheriting any kind of property often goes along with some mixed feelings thrown in. For example, it may have come from a person who was very close to your heart, and their passing away was a very difficult thing to deal with.
In this scenario, any kind of inheritance, whether it’s real estate or other valuable assets, doesn’t seem to be a matter of utmost priority to you. In other cases, people inherit homes and various other assets from very unexpected sources, such as distant relatives they didn’t really feel like they shared a bond with.
Regardless of who you’ve inherited a house from, you’re going to have to face some tough decisions regarding the property, whether you like it or not. If you’re lucky enough to have inherited a house with no mortgage, your array of options is actually pretty wide from the get-go.
Assuming that you’ve already gone through the probate process and made matters clear with the remaining relatives of the deceased person, the home is yours to deal with as you please. If you’re confused about your options, look no further! This article will help you decide what to do with your newly inherited house.
Keeping the House
The easiest (and most obvious) option when dealing with an inherited house is, of course, keeping it for yourself and your family. If you’ve been renting an apartment or house for the majority of your life or had a mortgage on your current place, keeping and moving into the inherited home means that you will no longer have to endure these payments every month.
It equals more money in your pocket, and less stress about missed due dates or not having enough income to cover all of the costs that pile up on you every single month. More cash means more stability, which is priceless, especially if you’re planning to have children or have already started your own family.
Besides living in your family home without worrying about financial responsibilities like rent, owning a mortgage-free home also provides you with a great sense of security. If life doesn’t quite pan out like you thought it would, and you lose your job or go through a divorce, you can always fall back on the fact that you can sell your debt-free, inherited house and get a significant profit. This kind of money might just help you re-start your life from scratch without having to jump through too many hoops!
Renting It Out
Not everyone can just drop everything and move into a new house at a moment’s notice. If you’ve inherited a house but have no intention of moving there, one of the smartest things you can do with the property is to start renting it out to responsible tenants. Getting these monthly payments can prove to be a stable and very lucrative source of passive income.
In fact, many people dream of having a house they can collect rent money on. Finding long-term tenants who are never late with their payment may just prove to be life-changing for you, especially if you’ve inherited a house with no mortgage. The rent money won’t be going towards paying off any kind of debt, but rather straight into your pocket!
Of course, being a landlord doesn’t entail you resting on your laurels and collecting cash on a monthly basis in exchange for doing absolutely nothing. You will need to put in a lot of effort into making sure that the property is well-taken care of. This means no plumbing or electrical issues for the tenants to worry about, as well as making sure that the interior and exterior walls and roofing are in a good condition.
Depending on where the house is located, you might also want to take a look at the state of furniture and amenities of your property. In some countries, like Germany, long-term renting out empty, unfurnished houses and apartments is a common practice, but in other places in the world, this kind of approach is frowned upon. Before making the decision to rent, make sure that you’re ready to invest your money and effort into making your inherited property an attractive place to live in.
Selling The House
Choosing to sell the house you’ve just inherited is also a perfectly viable option. Whether it is because you don’t want to live in it, or don’t want to deal with tenants all year round, or a combination of the two, you do stand to gain a lot of money by putting up your inherited home for sale on the open market. You should keep in mind, however, that this process isn’t as straightforward as one may wish.
When you inherit a house, you’ll want to take care of paying your inheritance tax first. If you don’t handle that immediately and put it up for sale, it may just affect its price, not to mention the fact that not many people will want to pay indebted property. Afterward, you may want to seek out an experienced real estate agent who has a good sales record in your area. While it is possible to go through the process of selling a house without an agent, you stand to sell it much quicker with professional help. A good Realtor will connect you with the right buyers and help you sort out all of the paperwork.
Once you sell the house, you’ll have to make sure that you pay your capital gains tax and all of the leftover property taxes. One downside of selling on the open market is the fact that if your home is up for sale for a long time, things like property taxes and insurance tend to pile up, resulting in unnecessary, additional costs.
Sell Your House for Cash
While you may end up making slightly more money when selling on the open market, there is no guarantee that your potential buyers will be able to secure a loan on the house or that they will not back out at the last minute. Additionally, you may have to pay a hefty fee to your Realtor and possibly withstand months of paying for the insurance and taxes. And generally, inheriting a house is not always a pleasant experience, as it is often associated with the death of a loved one, so you may feel the most comfortable with avoiding too much fuss.
This is why selling your house for cash to an e-buyer like Highest Cash Offer may turn out to be the best option for you and your family. Our experts know the real estate game inside out and will provide you with an attractive cash offer within 24 hours after getting the proposal. You’ll get to sell your house at a fair market value without having to find a buyer or any other additional financial responsibilities!