Do You Need to Sell an Inherited Property?

House in gift box - inherited property concept

Many people end up inheriting homes from family members as part of a will or through other legal proceedings. There are definitely some positives to inheriting property in most cases. You are gaining a significant financial asset. You might even be able to use the home for yourself or another family member to live in.

What Do I Do With My Inherited Property?

What you choose to do with an inherited property may depend on a number of different factors. If there is still a mortgage loan debt attached, you will have to decide if you want to keep paying or sell the house and take whatever profit you can get. Even if the home is already fully paid off, you could have some tough decisions to make. It still will cost some money to hold onto it. There is insurance, property taxes, utilities and general upkeep that you will have to worry about. Renovations may be required if you plan to move in or hold onto it as a rental unit. Renting it out will also take some time and money, especially if you choose to hire a property management company to oversee the day-to-day duties.

One other factor to consider is location. Oftentimes, people inherit properties in other cities or states. This can make it harder to deal with as the new owner. It may not be convenient to hold onto the house and take care of the property, so selling it could be the most logical option.

How Can I Benefit from an Inherited Property?

The good news is, as long as you are inheriting an upside-down mortgage loan, you have some good options. You should be able to get some use or financial gain out of the property no matter what you choose to do with it. Keeping it as a rental could a nice source of additional income from month to month. Plus, you can let it keep appreciating in value until you are eventually ready to sell it. Moving into it or letting a family member live there may be an upgrade over your current living situation. Lastly, selling it would be a great financial windfall. You can get what you are able to out of the property and then use that money for something else—or just put it in the bank as you plan for your own financial future.

So, the question is how do you go about selling an inherited property? One of the first challenges may be dealing with any items left inside. There may be some furniture or personal possessions that are worth some good money, so you and your fellow beneficiaries will want to deal with that accordingly. You may reach out to a local consignment company or antique dealer to sell certain items. Other pieces you may want to keep. Then, there may be a bunch of junk that just needs to be cleaned out and donated or thrown away.

Property Condition

Next, you have to understand the condition of the house. It may be in great shape and be ready to sell once it is properly cleaned up. Or, it may need some significant work. This may be a major factor when it comes to deciding how you want to sell the property. If it is in good shape, you can hire a local real estate agent and sell it on the open market. Or, you can consider cash offers from real estate investors if you are looking to sell the house as quickly as possible.

If the property is not in good shape, then you can either invest some time and money in renovating it. This may be somewhat costly right now, but you will ultimately be increasing its value to sell or rent out later. The work could be well worth it if you aren’t in any rush. Another solution will be to sell it as it is to a real estate investor. Let the buyer take ownership of the property as soon as possible. Then, they can plan their own renovation. This option takes a lot of stress and responsibility out of your hand. You may not get as high a price, but you can sell quickly, take the cash proceeds and move on with your life without any further financial or emotional burden from the inherited property.

If you have an inherited property you would like to sell, contact PropertyLark. We can make you a fair and fast cash offer, or we can help you explore other home selling solutions. Please fill out the form to the right to get started.