With an inheritance, there are many emotions at the forefront: grief, denial, confusion, anger. All these mixed together can make executing your loved one’s will stressful, especially if you discover you have received an asset like a house. Receiving a house is a life-changing but overwhelming gift and you need a level head to make a concise decision. Luckily, there are a few options to consider with your inherited house.
Short-term Responsibilities
When a home is inherited, you gain new responsibilities, such as the mortgage, taxes, and insurance. All of these need to be addressed in the short term no matter what you plan to do with the home in the long term. This includes making monthly payments, paying necessary utility bills, and staying on top of additional debt attached to the home, such as outstanding contractor bills or a second mortgage.
Long-term Options
Once you have figured out the short-term responsibilities, you need to figure out what the game plan is for the inherited home. Will you move in, rent it out, or sell it? Each option comes with its pros and cons, but if you are not the sole inheritor it may not be an easy decision.
Sometimes, a house is left to multiple inheritors, this is especially true if there is more than one sibling. If that is the case, everyone needs to come together to make a decision. This can get hairy as emotions are already running high. It’s always best to know your options before making a choice. If there is one person in the group adamant about a certain decision, they can try buying the inherited portion of the house from the other inheritors and become the sole inheritor. Then, once they are the sole inheritor, they will still have these options to choose from.
1. Move In
More than likely, it is a family home that contains many memories you do not want to part with. Or, the inherited home is nicer than your current living situation. If you are keeping the home, there are a few steps to take. You will need to move the home into your name and continue to make monthly payments.
If you are worried about making the payments, you can try refinancing the house to a better interest rate or longer term or pay a chunk of the mortgage with any additional money you inherited. This can come from a trust, life insurance, or any other fund your loved one left for you.
Once you figure out the financial logistics with the house all that is left is to move!
2. Rent It
Renting can be a great short-term solution while you are figuring out what to do long-term, or a great long-term solution because renting the house means you are generating passive income. The income you receive by renting can go towards the mortgage, insurance, and taxes. Plus, depending on how much you charge, you may be able to pocket some of the money each month.
To pursue this option, you will need to take some time to get the house move-in ready for new tenants. This may include some home improvement fixes, like redoing the flooring, repainting the walls, or tackling any problems or issues with the home. You can also choose how you want to rent the house.
- Short-term rental – If you are still trying to decide the best long-term solution, you can rent the house on a month-to-month basis. This will help cover the mortgage and other costs associated with the house until you make a better plan of action.
- Long-term rental – To guarantee a monthly income, you can rent the house with 6-month to 1-year leases.
- Vacation rental – If you live in a touristy place, you can rent the house out during peak times of the season, while picking and choosing when you want your house to be occupied.
After that, it is just a matter of getting a landlord insurance policy, keeping up with the maintenance, and listing it on the right rental website.
3. Sell It
If the upkeep of the home or mortgage is too much, it may make the most economical sense to sell your inherited property. By selling, you can cover the existing expenses and usually make a profit. There are two ways you can go about selling your property.
By Realtor
If you hire a realtor to help sell your inherited house, you will need to get the house cleaned up, make any necessary repairs, and even complete home improvement projects that could boost the home’s curb appeal.
Once you list the house, you just need to wait for an offer. With the right offer, there will be an inspection, property assessment, and then approximately 30 days to close. On closing day, all the heirs of the property will need to be present to sign the required documents to move the ownership to the new homeowners.
WCC Properties
Depending on your timeline and budget, going through the extensive traditional home-buying process may not be in the cards right now. If you are looking for a hassle-free way to sell your inherited property, you can sell it to WCC Properties.
They offer speed and convenience, closing a deal as fast as a week. This means you wouldn’t be responsible for the short-term finances, like the mortgage. Instead, you can focus on processing your grief and looking forward. Plus, there are additional advantages, such as:
- Move-out flexibility – Move on your terms. The team understands you are going through a rough time and may need some time to go through your loved one’s needs, especially if you no longer live in the area.
- Skip the closing costs – These are covered. There’s no need for more money to come out of your pocket than necessary.
- As-is condition – If that house looks like it hasn’t been updated in decades, don’t worry. WCC Properties buys homes no matter the condition so you don’t have to invest time and money into repairs and home improvement projects.
Whatever you decide to do with your inherited home, make the best decision for you and your family.
