I Inherited a House, What To Do? – Should I Rent or Sell in Shenandoah Valley?

An inherited property refers to a house that is passed down to an individual or a group of heirs following the death of its previous owner. This transfer typically occurs through the legal mechanism of inheritance, wherein the deceased individual’s assets, including real estate holdings, are distributed among their heirs as per the stipulations of a will or according to intestacy laws in the absence of a will.

Inheriting a house commonly occurs within families, with the new owners, known as heirs or beneficiaries, assuming ownership of the property. These inherited properties may be retained by the heirs for personal occupancy, leased out for rental income, or sold, depending on the preferences and agreements among the heirs.

Managing an inherited house entails various considerations, such as property tax obligations, upkeep and maintenance requirements, potential existing mortgages, and decisions regarding whether to retain, sell, or divide the property among the heirs. Often, this process involves navigating legal and financial procedures to facilitate a seamless transfer of ownership from the deceased individual to the heirs.

I Inherited A House, What To Do Next?

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 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 Shenandoah Valley real estate, and we’re looking to buy several houses each month in the Shenandoah Valley VA 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.

Here’s a few important considerations to help you make the right decision:

1) Make sure the mortgage is paid.

This may sound obvious, but if the person who left you a property also had a mortgage (unless it had no mortgage and was paid off, which is great!), you have to pay it (assuming you want to keep the property). Some banks will allow you to assume the loan, while others may force you to refinance into a new loan. If you don’t qualify for a new loan, renting may not be an option for you.

2) The investment is only as good as the manager.

If dealing with brokers, maintenance, tenants, rent collection and all the nuances of property management isn’t the best use of your time, hire a professional to help you or cash out now.  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) Property ownership costs money.

It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements.

Consider hiring a professional property inspector to give you a detailed rundown on what you’ll need to do within the next five years, along with estimated costs. Surprises are very, very expensive.

4) Selling a property for top dollar costs money.

If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy Shenandoah Valley 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.

7) Consider all your options.

In certain situations we may be able to help you structure a lease-option agreement 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 Linden investment experience can help you win.

8) Compare a few scenarios.

We’ll help you determine prices for any property near Linden – 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).

SUMMARY

Upon inheriting a property, one primary concern is ensuring the timely payment of any existing mortgage. This might involve assuming the loan or refinancing, depending on the lender’s policies. If managing the property proves burdensome, considering a professional property manager could alleviate the responsibilities associated with maintenance, tenant management, and rent collection. Property ownership entails ongoing expenses, often including significant maintenance and repair costs. Conducting a thorough inspection can provide insights into necessary future expenditures.

Selling a property for its maximum value typically involves investing in repairs and upgrades, although selling to a cash buyer offers an alternative that bypasses this requirement. When deciding whether to sell or retain the property, evaluating the market’s growth potential relative to other investment options is crucial. Seeking guidance from tax and legal professionals is essential to grasp the tax implications of inheriting and owning property. Exploring diverse options, such as lease-option agreements, can provide flexibility in managing the property’s disposition.

Lastly, comparing various scenarios, including selling the property as-is, selling after renovations, or retaining it as a rental, can help in making a well-informed decision about the most favorable course of action.

Just call or text us today at (540) 212 4047 or contact us now for more information on how we can make you a fair cash offer on your inherited house today!

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