Selling Inherited Property
More often than not, inheriting property feels more like a burden than a blessing.
While the initial thought of coming into property due to a death in the family may seem like a gift or an opportunity, the actual process of inheritance is often complicated.
“Cut and dry” cases of beneficiaries inheriting a home without hitting any snags are rare; likewise, the legal and emotional baggage that come along with such property are often difficult to deal with.
If you’ve recently become a beneficiary or know that you’ll be the recipient of a home down the line as the result of an inheritance, you need to understand the realities of inherited property before you get in over your head.
Why Selling is Your Best Bet
For starters, it makes almost always make more sense to sell inherited property versus trying to rent it out or live in it yourself.
This is especially true if you’re not the sole beneficiary, as splitting the profits from rent or deciding which beneficiary should live in the house are both huge headaches. Likewise, the act of playing landlord can be both costly and time-consuming.
If the inherited home needs to be extensively cleaned or renovated, for example, beneficiaries may find themselves in a deep financial hole when trying to rent it out. Unless the property is in your own backyard, the process of upkeep for rentals likely isn’t realistic.
Rather than get stuck with a home that’s more trouble than it’s worth, you’d be much better off selling the property outright.
The Hidden Issues of Inherited Property
Unfortunately, the process of selling inherited property on the traditional market is usually tedious and comes with a myriad of hidden costs. For example, consider the following:
- Once you’ve inherited property, you’ve also inherited the estate taxes associated with the property
- Likewise, beneficiaries become responsible for the mortgage of the home and are therefore responsible for monthly payments
- Many inherited homes require repairs which can quickly add up, especially if they’ve been neglected (think: the costs of roofing, plumbing and electrical repairs can be massive)
These three issues alone are enough to overwhelm any beneficiary, regardless of the size or scope of the property.
Why You Should Strongly Consider Selling As-Is
The smartest and swiftest solution to avoiding this snafus is rather straightforward: sell the property “as is? The benefits of selling as is are three-fold:
- The process of selling as is much less stressful than trying to cling to a property that you simply can’t afford to keep up with
- There’s a built-in market of DIYers and flippers who are more than willing to deal with costly repairs and renovations themselves
- You can actually benefit from your inheritance versus being stuck with a financial burden
Selling your property as quickly as possible is a prime option for those looking to make the most of their inheritance. If you have any questions about the process or need any help along the way, feel free to contact us for more information.