Following the death of a loved one, you may become the recipient of an unexpected parcel of real estate. With this comes very great obligations, and if not handled properly the original plans for the successor may become a very heavy burden. In such circumstances, you need to be ready and willing to make some tough financial and emotional decisions when it comes to dealing with an inherited property. There are generally three options to consider when inheriting a property.
First, lets assume the previous owner properly maintained the property and none of the following come with the inheritance:
- No issues with transfer of ownership, meaning a very detailed will or deed upon death has been reviewed by an attorney and recorded with the county and outlines who shall own the property
- No recently missed mortgage payments
- No liens including water, trash, sewer or from any other third party who may be owed
- No back property taxes or income taxes
- No major repairs, deferred maintenance, or no permitting issues with structural additions
If everything above is clear, the new owners essentially have three options available to them: move in, rent it, or sell it.
Move In: If you are currently renting or are planning to relocate in the same city, then moving-in may be an obvious choice, but owning a home can get expensive. Along with the mortgage payments, you will also have to deal with other ongoing expenses such as property taxes, homeowners insurance, liability insurance, heating, electricity and general upkeep of the house. The scenario might also get complicated if there are multiple beneficiaries such as siblings or other relatives since it gets difficult to handle the emotional and financial stress that comes with it.
Renting It: When moving seems impractical, renting the property is a great idea to generate income. Before renting, you may have to deal with the stress of cleaning out the inherited house. Fighting over the possessions can cause real discord within the family. Being a landlord can be a costly and time-consuming job, so it’s best to think it through before turning the home into a rental.
Sell It: Not selling an inherited house and neither living in it can lead to increased maintenance and insurance costs, adding financial and emotional burden into the equation. Selling the home is often preferable if the inheritors are in need of money right away. You may get the benefit of substantial tax breaks.
If time is of the essence, you can reach out to The Property Savers. As a real estate solutions company, we craft win-win solutions for homeowners across Las Vegas.