Inheriting a property is always nice. Some inherited properties, however, come with challenges. Most often, you inherit a property due to the passing of a relative. Let’s assume there’s no dispute about who the beneficiary of the property is. But there may still be a lot of outstanding routine maintenance work. When all this is added up, you find you’ll need to shell out a sizeable amount.
So how do you liquefy the inherited property into cash quickly? First up, you’ll need to transfer the title deeds to your name. Ensure there’s no delay. If you have decided on selling inherited property, this is the first step you need to take. Remember, you cannot sell the property until you are its legal owner.
This detailed post explains all your options and presents you with the information you need to make the best decision that suits your financial circumstance.
#1: Consider All Your Initial Expenses on an Inherited Property
It’s important that you keep track of all the money you spend on the property you inherit. Later on, when you sell the property, you can factor in this amount and add it to the selling price of the property. Let’s look at the major expenses.
i. Mortgages and Loans
In the case of most inherited properties, mortgages and loans would have already been settled during the lifetime of the property owner. But it’s always safer to check. If the property has no outstanding mortgage or loan, then you don’t need to worry about missing any monthly payments that fall due.
In case there’s an outstanding mortgage or loan on the property, speak to the lender and advise them of the latest circumstance. The passing of the borrower doesn’t mean that the mortgage or loan will be written off. You’ll still need to make the monthly payments.
The lender will be keen to ensure that there’s no break in payments. They will, however, understand how difficult the additional burden of a loan payment can be for you. So, they may be willing to set up a brief payment holiday, allowing you sufficient time to make the right decision. This positive step can be especially helpful in this stressful period.
ii. Property Insurance
Although property insurance is a major advantage, it’s a major expense. There are several reasons why an inherited property needs insurance. Unoccupied properties tend to become damp and deteriorate quickly. Vandalism, squatting, and arson are other real hazards. The other thing is an empty house attracts all kinds of pests.
When you inherit a house, the existing homeowner’s policy will not transfer to you automatically. Hence, you’ll need to buy a fresh insurance policy. In addition, if the house will remain unoccupied, you’ll have to notify the insurer. And for safety reasons, the insurer will request you to turn off the electricity, gas, and water supplies.
iii. Routine Maintenance
In the best-case scenario, an inherited house is a few decades old, at least. But most inherited houses are typically several decades old. If you inherit an old house that’s in barely usable condition, it can be expensive to maintain.
An inherited house may have mild to serious maintenance issues that you’ll need to fix before you can even put it on the market. And if you aren’t the sole inheritor, taking a call on fixing maintenance problems can be tricky.
From raking leaves in the backyard to mowing the lawn, and from fixing squeaky door handles to inspecting the roof for damage, there is always some form of maintenance that needs your attention. Visit the property and prepare a comprehensive list of all essential maintenance tasks. Arrange these tasks in order of priority and complete them. Finding a reliable contractor at short notice can be a challenge. So, it’s a great idea to consult people in the neighborhood about this, as they might be able to help you.
iv. Traveling to the Property for Timely Inspections
If the property you inherit is close to your home, the traveling time shouldn’t be a significant factor. But if it’s far off, you’ll end up devoting a lot of time toward the upkeep of the property. If the property is in another state, you’ll have to plan your visits in advance. You’ll also have to take into account the amount of time and money you invest.
As weeks fly by, the costs add up fast and become significant. One way you could save valuable time is by sharing the burden with your friends and family. And it isn’t a bad idea to request a friendly neighbor to help you with some minor inspections.
#2: Look Into Selling Inherited Property to a Family Member
Often, a house or plot of land is inherited by two or more people. In such instances, it’s better to sell the inherited property to a family member—it could even be your sibling—as you could save a lot of time. It’s the best thing you could do if it isn’t going to cause undue strain in the family relationships.
Selling your share of inherited property is also advantageous and time-saving if one family member has a strong emotional attachment to the property and they’re willing to buy your share. Often, selling inherited property to sibling is easy if you can arrive at a mutually agreeable price. It’s especially convenient when one of your family members wants the house to remain within the family.
Even when you are the sole inheritor, it’s wise to find out if any of your family members or siblings would be interested in buying the inherited property. In case anyone is interested, this could be your first option of selling the inherited property.
#3: Work with a Real Estate Investor for Selling Inherited Property
The main advantage of working up a real estate investor is you can sell the property As Is. You don’t need to worry about the upkeep of the inherited property as the real estate investor will take care of the routine maintenance tasks. And after the purchase price is finalized and the sale transaction is completed, they will be responsible for the property insurance.
Sometimes, the incidental expenses on the inherited property can be very high. After all, an old building requires a lot of upkeep. In such a situation, shelling out cash for these expenses can be a challenge. And this is especially true if there are several beneficiaries.
For instance, let’s say you are willing to spend money on the inherited property and spruce it up. But it’s quite possible that the other beneficiaries might be reluctant to do so. And it’s also possible that they might not agree to reimburse the money you spend when the property is eventually sold.
The simplest way to act decisively in this situation is to sell the inherited property quickly. You can then divide the cash equally among the beneficiaries. When you are the sole inheritor, working with a real estate investor for selling inherited property is easy as you are the sole decision maker. It’s also the best thing to do, as you are guaranteed a great price. Although selling inherited property to a family member or sibling will ensure the property remains with your family, you may not get a good price for the property.
When there are several beneficiaries, you can coordinate with all the beneficiaries and nominate a personal representative. If no family member intends to buy the property, you can work with a real estate investor for selling inherited property.
Even when you are selling inherited property with a mortgage, you have nothing to worry about. A real estate investor will take care of all the paperwork and make the outstanding payments.
Get Paid in Cash for Selling Inherited Property
If selling inherited property is your priority, we have good news. A real estate investor will offer cash for the property. Getting paid in cash will work in your favor whether you are the sole beneficiary or even if there are several beneficiaries. A cash transaction simplifies the final settlement among the beneficiaries. So working with a real estate investor can speed up the whole sale transaction. You can sell only when you receive a fair price. We know all this seems too good to be true. But to be honest, that’s how it is.
Home Seller Heaven is a lawful company with an authentic business model. We are a cash buyer, and we guarantee an ultra-fast sale. In addition, the price we offer for your property is fair. We work out this competitive price based on standard valuation criteria. We present you with a free non-obligatory quote first. You can examine similar quotes from other real estate investors too.
You can then carefully consider all your selling options. You don’t need to make a quick decision, as we are in no hurry to close the deal. You can take your time and tell us when you’re ready to sell the inherited property. That’s the chief benefit of working with us. At no point do we pressurize you to sell.
#4: Sell the Inherited Property Via the For Sale by Owner Route
Selling inherited property is an emotional experience. Sometimes it can be painful, as the first step involves clearing out all the personal items of the deceased person. This is a difficult task, but it’s vital for getting a good price. A cluttered property isn’t going to fetch you a good price.
You can inspect the property early and determine the sentimental items you want to retain. This might take you 10 to 15 minutes or several days, depending on your relationship with the deceased person.
Most inherited properties need major repairs and renovations to attract buyers. You can, however, make some inexpensive repairs and paint the property to let it out. But if the prospect of dealing with tenants, managing routine maintenance tasks, and collecting rent every month isn’t something that excites you, then it’s wise to cash out. There’s no point in holding on to a property in which you have no intentions of staying, and there’s a high likelihood that you might lose money.
The major difficulties of selling inherited property using the For Sale by Owner route are:
- Setting a realistic price
- Managing the extra expenses on the preparations to “stage the inherited property”
- Arranging a professional photoshoot
- Answering calls from potential buyers and their agents
- Scheduling appointments and showing the property
- Negotiating the final price.
#5: Sell the Inherited Property Using the Traditional Real Estate Agent Route
While selling inherited property via the traditional real estate agent route is possible, it’s time-consuming and labor-intensive. If you are time-poor or simply lack the confidence to do it on your own, it is worthwhile to list the services of a real estate agent. Their commission structure is a bit expensive, but in a decided seller’s market, an agent can sell your house fast for a reasonable price.
The major problem with selling a property using an agent is getting it to sell-ready condition. While the property might sit on the market for just a few weeks once it’s listed, it will take a few months at least to prepare the property for sale. This is the major downside of working with a real estate agent.
Repairs, renovations, and other pre-listing preparations are not only expensive but can also take a lot of time, especially if the property is several years old. This shouldn’t be a serious concern if the property has been maintained well periodically. But most old homes are poorly maintained.
Showings to multiple buyers—which can be inconvenient if you live far off—and mandatory property appraisal—which can be expensive—are the other downsides of working with a real estate agent.
Renovating an inherited property before you sell it is a great idea. For one, you’ll get a higher price. But the problem with renovating an old property is you might end up spending a lot of money, and there’s no certainty that you’ll even recover the amount you’ve invested.
But you don’t need to make expensive repairs and renovations if you work with a real estate investor like Home Seller Heaven. We buy houses for cash in any condition and offer you a fair price.
So don’t worry about the condition of your inherited property. Simply sell it to Home Seller Heaven for a competitive price.