Your 4 Best Options for an Inherited Property

There are usually good and bad things that come with inheriting property from a family member. It’s nice to get major financial assets like houses and land. We all know real estate is one of the most dependable investments around. However, dealing with an inherited property can also be a burden—physically, financially and emotionally. You have to figure out what you are going to do with the house now that it is in your name.

There are basically 4 different options you can consider:

1. Move In

If the inherited property is an upgrade over your current dwelling and/or it offers a better financial situation for you and your family, then it may make sense to move into the house. Perhaps it is fully paid off or much further along in the mortgage than your current house. Or, maybe it’s just a nicer house. Either way, you can clean it up and use any financial gains to make upgrades and repairs.

2. Rent it Out

Another smart option is to hold onto the property and use it as an income property. You can clean it and fix it up, and then find good tenants to move in and pay rent every month. It may take a little investment of time and money to get the house ready for renting, but it could be worth it. Even if some money is still owed on the property or you have renovation expenses, you can turn it into a profit and supplement your monthly income with the rent checks. Just make sure your ownership expenses are covered and the rent price will make it worthwhile to keep the property as an investment. 

3. Hold It for the Equity Gains

Some inherited property owners opt to simply hold onto the property and do nothing with it until they decide to sell later. This usually only works if it is fully paid off and you can cover the basic ownership expenses like upkeep, property taxes, insurance and utilities. The house may stay unoccupied for awhile as you let the equity grow. Later, you may decide to move in, rent it out or sell it for a larger profit. Just remember that the equity is also growing in a rental situation AND you will be getting those monthly rent payments, so definitely consider option #2 strongly before settling on option #3. Option #3 is usually only reasonable when you don’t have the time, money or resources to fix it up and get it ready for rent or sale. You are basically just holding onto it until you decide what to do with it at a later date.

4. Sell it

Last but certainly not least, you can sell the inherited property. This allows you to turn the inheritance into cash that you can use for other purposes, such as paying off other debts, paying down your current mortgage, investing elsewhere or spending it on something fun and frivolous. As for how to sell it, you have a couple different options to consider. You can clean it, fix it up and sell it on the open market for maximum resale value. This will take some more time, effort and probably some investment of capital to get the best returns. The other alternative is to sell the house in as-is condition to a cash buyer—usually a real estate investor. They will take the property off your hands quickly, so you don’t have to worry about repairs or extended ownership expenses. You will get the cash in your account and not have to deal with the burden of inherited property ownership.

In many cases, the inherited property is in a different area than where the heir lives. This can make ownership even more of a burden because it may require travel or paying a local property management company in a rental situation.

If you have inherited a property, it’s very important to consider all your options for keeping it, renting it out or selling it. Every situation is unique, so do your research and make the decisions that are best for you and your family.

If you would like to receive a fair cash offer for your inherited property, simply fill out the contact form on any page of the PropertyLark website. We’ll send you a cash offer within 24 hours or help you explore other selling options based on your specific financial situation.