5 Reasons to Sell Your Inherited House Quickly
Inheriting a house can come with a mix of emotions. An inherited home can be a valuable asset for you and your family, but you also have to be prepared to make a number of challenging financial decisions. In the wake of a loved one’s passing, these decisions can be overwhelming, but eventually you’ll have to decide what to do with your inherited house. You have three main options: sell it, move into it, or rent it out. Of the three options, the best and simplest option is typically to sell the house and split the proceeds with the heirs. 1. Houses sitting empty are costly. Even a “free” house can still be costly. A house sitting empty creates mounting costs and ongoing expenses. Property taxes, homeowners insurance, utilities, maintenance, and general wear and tear may make a huge dent in your finances. If the house is not being lived in, it will slowly deteriorate over time, resulting in what could be a substantial drop in the home’s value. 2. Rental properties take a lot of time and effort. If more than one person is an heir to the house, you’re probably not going to live in it together. That really leaves you with two options: sell it or rent it out. However, it’s important to think twice before turning the home into a rental. Becoming a landlord can be costly and time-consuming, and it shouldn’t be treated as a hobby—it’s a business. You should consider the downsides of owning a rental property to determine whether or not you’re cut out for it long term. 3. Inherited houses are typically in disrepair. Most inherited homes are in fairly bad shape because many times the homeowners were elderly, ill, or just unable to provide proper maintenance. The beneficiaries will be responsible for all the necessary repairs before either living in it, renting it, or selling it. Repairs are costly, even if everything goes right AND you have a good contractor that you can trust. 4. Probate is time consuming and expensive. When a person passes away, his or her property is put into a court process called probate. Probate is a legal proceeding used to settle a person’s estate after death that can be complicated, time-consuming, and expensive. It often creates a complex nightmare of legal and financial problems, and it can be overwhelming for families to deal with the loss of a loved one while meeting with lawyers, accountants, funerary services, and more. 5. Capitalize on massive tax breaks. If you sell the house quickly after inheriting it, even if it significantly increased in value since the deceased purchased it, you won’t pay capital gains tax. The property’s tax basis is brought to current market value at the time of the previous owner’s death. That means you inherit the house at the fair market value at the date of death. When you sell the property, any tax you owe is based only on the increase in value while the house is in your hands. Inheritances can be filled with emotional consequences, as well as financial ones. Many families cannot handle the stress that comes with cleaning out inherited property, so they end up doing nothing, which can be costly. Don’t let your inherited house cost you money or cause you stress! Avoid all the hassles and sell your house. You may not have the funds, time, or interest to fix your inherited house for sale or for rent. Perhaps you would prefer cash rather than the responsibility of caring for the property. Whether you are in probate or serving as executor of an estate, we will buy your house regardless of condition and help you ease the burden of inheriting a house. Let us show you how easy selling your inherited house can be!
Beware of Novice Real Estate Investors
If you’re in a complex situation with your home or need to sell it fast, selling to a professional real estate investor can be a great choice. Reputable, experienced real estate investors can give you a fair offer and make selling your house quick and easy. But buyer beware: Not every real estate investment company is created equal. While many real estate investors are trustworthy, novice or dishonest investors can leave you in a difficult situation. Some so-called investors promise a great price but don’t have the funds to back it up, wasting months of your time and money. Here are some questions to ask yourself to make sure you’re getting a fair deal. Is this a genuine, physical company? Real estate investing doesn’t require a license. That means anyone could call themselves an investor, even if they have no previous experience. Be cautious about individuals who claim to be investors but do not have a legitimate, registered business behind their claims. They may not have the know-how or funds to actually close the deal. If the company is online-only, do your research too. Some companies simply gather your information with no intention of buying your house. They then give your information to another real estate investment company for a price. How are they advertising? You may have seen signs on the side of the road claiming to buy houses. Often, online real estate investment classes will tell their students to use these tactics for advertising. However, in many places, these signs aren’t even legal. If there’s no company name and just a phone number, that can be a red flag. Reputable real estate investment companies will put money into legitimate branding and advertising. Look for a company name, website, and other online marketing, like social media. What do people say about them? You can learn a lot about a company with a quick online search. If you’re dealing with an experienced investor, you should be able to find testimonials or reviews from past sellers. These reviews will help you have confidence that others have successfully sold their house with the investor. Often, companies will have reviews for you to read on their websites. But see what people say about them on other sites too. Most commonly, you’ll find honest reviews on places like Google or the company’s Facebook page. Are there a lot of conditions you don’t understand? While real estate can be complex, you shouldn’t feel pressured into signing something you don’t understand. Professional real estate investors know the business. They partner with you to make sure the terms of the sale are clear and a win-win for both parties. Unfortunately, some less-than-honest investors will take advantage of your urgent need to sell. They may offer you one price but leave it open so they can lower the price later on. Or they may add on fees or hidden costs. When they switch the deal at the last minute, it can leave you in a hard spot with fewer choices than before. Is the offer so good it’s hard to believe? In the end, deals that are “too good to be true” probably are. If you receive an offer that’s significantly higher than another investor, be sure you understand the terms. Even if they aren’t intentionally dishonest, novice investors may make promises they can’t keep due to inexperience. Then, you end up months down the line having to start over because they are unable to close on your house. If something just doesn’t feel right, trust your instincts.