First, we’re so sorry for your loss. This can be a very challenging time for many reasons, and dealing with property ownership is tough in the best of times. We sincerely want to help you with the process of selling or renting your inherited house even if one of the options we offer you does not include working with us.
You’re thinking, “I inherited a house, what to do with this house?” Should I rent it? Should I sell it? How should I sell it?
Tons of options open for you, but…
… we can help.
We are a LOCAL established company in Salt Lake City UT, and we’re looking to buy several houses each month in the Salt Lake, Davis, Utah and Weber County areas. Every month we get calls from those who have inherited a house and are looking to sell the house… so the info below are some tips to help you navigate the process. We will buy the house as is – exactly as it sits right now, or we will offer other solutions that may work better for you such as renting or selling with an agent. Repairs, family living in the house, behind in payments…are all OK.
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.
This may sound obvious, but if the person who left you a property also had a mortgage (unless it had no mortgage and was paid off, which is great!), you have to pay it (assuming you want to keep the property). Some banks will allow you to assume the loan, while others may force you to refinance into a new loan. Most banks will allow you to keep making the payments on the house. This way you can rent the house or take your time doing things related to the house. Sometimes the same is owed on the house as what the house is worth. WE CAN STILL BUY the house and get you some money in most situations.
2) The investment is only as good as the manager.
If dealing with brokers, maintenance, tenants, rent collection and all the nuances of property management isn’t the best use of your time, hire a professional to help you or cash out now. Some people who inherit homes decide to keep the house and rent it for extra income. That’s a great strategy for sure. You just need to be prepared to manage the property and the hassles that can go along with tenants and toilets. I would suggest a good property manager that will cost you about 10% of your rent to manage the property for you. As long as there is enough cash flow, there should be no hassle involved in renting the house.
Please call Gary today at 801-382-9199 with any questions.
3) Property ownership costs money.
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements, and some are just very dated and in great livable condition. Even if dated but good livable condition, major issues such as heating, electrical, roof, plumbing, air conditioning and more can cost a lot of money over time.
Consider hiring a professional property inspector to give you a detailed rundown on what you’ll need to do within the next five years, along with estimated costs. Surprises are very, very expensive.
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 Salt Lake City houses for cash, as-is.
5) If the market will continue to grow faster than your other options, hang on to the investment.
We can help you analyze the value of your property today versus the long-term benefits of renting. If you can use the equity in your property in another way that outpaces the performance of the real estate market, you should. If you don’t have anything better to do with the money and the neighborhood is rising in value, hang on – real estate can be a great investment if you know how to correctly read the market.
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. I AM NOT AN ATTORNEY…most of the time there is little or no tax due when you sell an inherited property that was a primary residence. Ask your tax professional to make sure.
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. So you can sell the house and still live in the house. These kinds of deals can be complicated, but our LOCAL Salt Lake City investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Salt Lake City – 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).