First, Tom and Nancy are 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.
Tom and Nancy are seasoned investors in Los Banos and Surrounding areas real estate, and we’re looking to buy several houses each month in the Los Banos and Surrounding areas California area. Every month we get calls from those who have inherited a house and are looking to sell the house… they just don’t know where to start, so the info below are some tips to help you navigate the process.
I Inherited A House, What To Do Next?
Here’s a few important considerations to help you make the right decision: Have any questions just call Tom or Nancy at 559-715-1651 and we can help you guide through it.
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. When you receive a bank loan you will definitely have to qualify for that loan, in the mean time you still have to pay the mortgage if the home has a mortgage.
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. Best to make sure you have a good property management team lined up. Interview several before making that choice. The least money to manage might not be the best quality for you or your family. Do your due diligence!!!!
3) Property ownership costs money.
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements. Most of the homes need updated and require you to hire a contractor unless you are savvy to do it yourself.
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 Los Banos and Surrounding areas houses quicly, as-is.
5) If the market will continue to grow faster than your other options, hang on to the investment.
Tom and Nancy 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. Tom and Nancy can help you evaluate any situation that you are facing. Tom and Nancy don’t have an answer, we will find out for you. We are here to give you a win–win–situation for you.
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 Los Banos investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Los Banos – 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). Tom and Nancy Buy Houses have come up with plenty of options to help homeowners, like yourself, to get through the probate situation.
- Talk to the executor. The executor is a key figure for the process. …
- Talk with any co-inheritors. If you aren’t the sole heir for the house, talk with your co-inheritors. …
- Get an appraisal. …
- Evaluate any debts owed. …
- Consider getting professional advice. …
- Move in. …
- Rent. …