If you are holding onto an inherited house or property that you no longer want, it might be time to sell. The cost of holding onto a home can often exceed the value of selling it, and this is why we recommend selling your inherited property rather than waiting for years before finally deciding to sell. In this blog post, we will discuss six reasons why you should sell your inherited house or property.
We understand these situations can be very stressful, especially if you no longer want to live in the inherited house or you have to take care of it. You might be thinking of selling your inherited property but have some reservations about it due to family members that are unhappy with this decision. Here, we will discuss six reasons why you should sell your inherited home or property despite any objections from other family members and loved ones:
– Financial security – Inherited properties can often cost more than they’re worth because of the time required to find a buyer for an old house. This is sometimes referred to as “time decay” which means waiting too long on a sale could mean losing money rather than earning any by holding onto the inheritance until someone buys it at full value.
1)Taxes
Most people who end up inheriting a home almost always forget there are property taxes that need to be paid for. If you don’t sell and just live in the inherited property, you’ll have to pay taxes on it even if it’s not generating any income for you. Even if there is nothing due on the mortgage you still have to pay the annual property taxes which can be substantial.
-If you sell, that tax bill is no longer your concern! -You might also have to sell in order for heirs to qualify for certain benefits like Social Security and Medicaid. In these cases, it may not make sense at all to hold onto a house with little value.
-Fees: If there are any fees associated with selling an inherited home or property they need to be considered as well before deciding whether or not it’s worth holding on to the inheritance simply because of sentimental reasons. These costs can include things like realtor commissions, closing costs, title insurance, attorney fees, etc., depending on where you live and how much work is involved in getting rid of anything that might still be in the property.
2)Insurance
Depending on how much is left on the mortgage you still may have to pay the monthly mortgage payment, property taxes, and home owners insurance.
-If you don’t live in the house any longer then it’s worth having someone come out to do a walk-through with an appraiser before just deciding to sell it for whatever price can be found on Zillow or Trulia.
Having to pay insurance for a house or property your not living in is an unnecessary cost.
-If you inherited the house from your parents, it’s worth considering whether or not to sell it just because they have passed away.
Although we all love our memories of them and their home might be a big part of that, it’s important to factor in what would happen if something were ever to happen to you while living there. It could become costly for other family members who inherit the property down the line when taxes are high and mortgage payments continue without any help coming in on top than what was already paid out over time by previous owners/owners before death.
3)Assumption of Mortgage
If you plan on keeping the inherited home, you will have to assume the mortgage or sell it.
The value of your inherited property might be lower than what is owed on the house. You can quickly get a quote for how much equity there is in your home by getting an appraisal from one of these companies:
– Realtor.com has partnered with On Point Financial Services, LLC to provide this service at no cost and within 24 hours!
– Quicken Loans offers free appraisals through their “We Buy Houses” company if you’re looking for cash right away!
– Zillow also provides instant quotes for those who are just wanting land values without any investment.”
4)Utilities
If there are utilities owned on the property, you may be required to pay those.
The mortgage company or the lender will also have their own requirements regarding this topic and might want access to the property for inspections, etc. It’s always best if there are a few unresolved issues on inherited properties as possible so make sure any unpaid utility bills are taken care of too while you’re at it! Otherwise, some of these will become liens on the property and will need to be deducted when selling the property.
5) Maintenance
This is oftentimes the most stressful part when inheriting a home or property is keeping up with the maintenance.
If there is a lot of deferred maintenance, then this might be an opportunity to make some money on the property.
However, in the event that you do sell it and not keep up with the maintenance yourself or hire another company for these services, then you will have to deduct all those costs when selling or buying.
No one wants to inherit problems from their family members but sometimes we are left with no choice! Make sure any issues are taken care of before listing your inherited home or property as many buyers may avoid such houses because they don’t want any headaches themselves down the road.
6)Yard
Let’s be honest the last thing anyone wants to do is keep up with yard work. And if you can’t keep up with it yourself your gonna have to pay someone to take care of it creating another expense.
Conclusion
Unless you have plans for living in the home yourself or you know someone who has the time and money to invest in a fixer-upper, it’s usually best just sell your inherited house or property.
The maintenance costs for properties increase with age so when thinking about downsizing, remember that holding onto an inherited home can mean spending more on bills like upkeep and utilities as well as taxes. It is difficult to predict how long one will live in their current residence but if you plan on moving within five years of inheriting then selling might be a better option than putting up with all these other expenses because they are hard to quantify without understanding what any future buyer would expect from such a purchase.
For the last 6 years, Philly Home Investor has been purchasing homes all over the PA, NJ, and now FL regions. We make the process of selling a home or property even if it’s an inherited home or property. We buy all of our properties in “As-Is” condition and usually pay all of the closing fees associated with selling a property. Let us make you a fair CASH offer on your home today and close in as little as 21 days or less! With so many 5 star Google reviews there’s a reason so many people love us, and you will too!