You’ve Inherited A House? Now… What To Do With It?
Death and grief are difficult topics for most people to talk about. An exception to that is when an INHERITANCE is involved. In that case, it’s something you’ll likely want to discuss with your family.
When an inheritance first occurs, it may feel like you’ve “won the lottery.” But as you may have already discovered, the process is far more complicated than that. It’s important you know your options, and be prepared to make some difficult financial and emotional decisions.
Here are some of the things you may not have thought about in the process of inheriting a house.
Existing debt and bills will ultimately replace your sentimental connection to the property.
Don’t make quick decisions. In the wake of a loved one’s passing, you’ll need to decide what you’re going to do with the inherited home. You’ll have three basic options:
You can SELL IT
You can MOVE INTO IT
You can RENT IT OUT
If you’re currently renting, on the surface, it might seem like a good idea to move into your inherited property. It may not be as simple as that. Your decision could become a big problem, especially if you have siblings or other relatives who are also expecting their piece of the pie.
“If three of you inherit a house, you’re probably all not going to live in it together. That really leaves you with two options to consider:
Option #1: You can sell the property, and split the proceeds.
Option #2: You can rent the property out. Think hard about this one. Think twice before turning your inherited house into a rental property. Becoming a landlord is not as easy as its cracked up to be. Unless you know what you’re doing, the process can be costly, and very time-consuming.
It’s easy to get caught up in the thought of “making money” on tenants. But, before you go that direction understand there are plenty of hidden surprises that can, and often go wrong. Things like tenants who don’t pay their rent on time… costly appliance and property repairs… tenants who destroy your property… phone calls in the middle of the night when the toilet overflows.
Selling the property is often a better option, especially if you, or your siblings, need the money right away.
A great question to ask yourself is, “How do I sell my house fast, cash out and be done with it?
Initially, you might feel a close sentimental connection to your family’s inherited property. For many however, that connection can quickly change once “debt collectors” and “bills” enter the picture.
Even A “FREE” Home Can Still Be Costly
For example, if the house you inherited has an existing mortgage, the estate may have to settle it. You’re not always getting a house free and clear of debt.
Owning a home can be expensive, even if you’re not paying a mortgage. There are plenty of costs to consider.
Things like property taxes, homeowners and liability insurance, heating, electricity, and general “wear and tear” on the property. These things can put a huge dent in your finances.” It’s an enormous, ongoing expense.”
You may also inherit a lot of other “baggage” along the way. For example, an inheritance can create a lot of emotional and financial stress. Things left in the house… like furniture, family pictures, electronic equipment, household goods, and clothing, can all create added emotional angst.
There are also other issues to consider. By that, I mean, you and your siblings may want the same sentimental things in your parent’s home. Items like mom’s favorite tablecloth… or dad’s class ring… or your parent’s wedding album. … Have you thought about how all these things will be divided?
Inheriting your parents’ house almost certainly brings up all of the horrors associated with their death. That’s why many people cannot bring themselves to ‘clear out’ and sell a house they’ve inherited.
Many families find they can’t handle the stress that comes with cleaning out their inherited property. They may not do anything for a year or more, which can end up creating a lot of extra costs and stress.
By not selling or living in an inherited property, you’re still responsible for maintenance, insurance, utilities and tax bills…and they will continue to add up quickly! These additional costs create more financial challenges, which adds to the emotional stress involved.”
The old saying, “You can’t take it with you,” applies not just to assets, but liabilities as well.
Huge tax debts, loan guarantees, and unfinished financial business, can eat away at an expected inheritance, and leave heirs with a bundle of trouble.
As you can see, there’s a lot more to inheriting a house than meets the eye, especially if you’re one of several heirs to the same house. It’s important you meet with your family before considering all your options.
In the end, you want to be able to answer one simple question, and that is… “How can I sell my house fast.”
There’s a lot to mull over. It’s clearly a complicated process. It’s not the kind of thing we recommend you do on your own. One bad decision can be very costly.
If you stop and think about it, you’ll probably only go through an inheritance once in your lifetime. Conversely, we deal with it every day.
Let us help take the stress off of you. We’ll take you by the hand, answer all your questions, and give you excellent guidance along the way. We’ll go at your pace, so you can make the best financial decisions.
You probably have questions, and may not be ready to talk to anyone yet. That’s okay. We understand. In the meantime, you can email me at our Contact Us page with any questions and I’ll get back to you right away… or feel free to call me directly at (508) 859-1900 if you’re ready to discuss your situation today.