In light of these difficult circumstances, we extend our deepest condolences for your loss. We recognize that managing property ownership can feel overwhelming, particularly in the midst of grieving.
You might be grappling with questions like, “What should I do with the house I’ve inherited?” Should you explore the option of renting it out to tenants, or would selling it be a more suitable choice? If selling, what would be the most effective approach? With so many options available, it’s natural to feel overwhelmed, but rest assured, we’re here to assist you every step of the way.
Our commitment is to offer you the guidance and support necessary to navigate this process with clarity and confidence. As seasoned investors in St. Petersburg real estate, we specialize in purchasing multiple houses each month within the St. Petersburg, Florida area. We frequently receive inquiries from individuals who have inherited a property and are considering selling. Below, we’ve outlined some valuable tips to help you effectively navigate this journey.
I Inherited A House, What To Do Next?
Here’s a few important considerations to help you make the right decision:
1) Make sure the mortgage is paid.
It may seem straightforward, but it’s essential to consider that if the individual who left you the property had an outstanding mortgage (unless it was fully paid off, which is fortunate), you’ll need to address it if you intend to retain ownership. Depending on the lender’s policies, you may have the option to assume the existing loan or be required to refinance into a new one. If you’re unable to qualify for a new loan, renting out the property may not be a feasible option for you.
2) The investment is only as good as the manager.
If the intricacies of property management, including working with brokers, handling maintenance, dealing with tenants, and collecting rent, aren’t the most efficient use of your time, it may be wise to enlist professional assistance or consider selling the property now. While some individuals who inherit homes opt to retain ownership and rent them out for additional income, it’s crucial to be prepared for the responsibilities and challenges associated with managing the property, such as addressing tenant issues and maintenance concerns.
3) Property ownership costs money.
It’s uncommon to encounter an inherited property that has been impeccably maintained. Many inherited houses require significant improvements and updates. To gain a comprehensive understanding of the property’s condition and potential future expenses, it’s advisable to enlist the services of a professional property inspector. They can provide you with a detailed assessment of necessary repairs and renovations expected within the next five years, complete with estimated costs. Avoiding surprises is paramount, as unforeseen expenses can be exceedingly costly in the long run.
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 St. Petersburg houses for cash, as-is.
5) If the market will continue to grow faster than your other options, hang on to the investment.
We’re here to assist you in evaluating the current value of your property compared to the potential long-term advantages of renting it out. If leveraging the equity in your property for alternative investments yields higher returns than the real estate market, it may be prudent to explore those opportunities. However, if you don’t have alternative investment options and the neighborhood is experiencing appreciating property values, holding onto the property could prove to be a lucrative investment. Understanding how to accurately interpret market trends is key to maximizing the potential benefits of real estate investment.
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 Suite 1246 investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Suite 1246 – 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).