Inheriting a house can be one of the most exciting things in your life. Amidst all of the excitement, however, people forget that they are also inheriting massive responsibilities. Believe it or not, many people think of inheriting a house as a windfall, but it is far from it. If anything, there is a good chance that you may be getting a sinking ship, and fixing it is your responsibility, whether you can or cannot afford it.
So, while you might be incredibly excited about inheriting a Philadelphia property, it may not be beneficial for you financially right away. More often than not, properties that are older or left behind in wills are not in the best conditions. They go through a great degree of wear and tear over time and their roofs and foundations wear out significantly.
When inheriting a property in Philly or anywhere else for that matter, you have to handle a variety of problems left behind by the benefactor. These could include cleaning the property, going through all of the benefactor’s stuff, emotional strains, and a lot more. There are plenty of cases when several heirs are involved and their emotions tend to rule their actions. Things like these can add a great deal of stress on the inheritor and make things quite challenging.
Being proactive can help you inherit a property with minimal or no stress. Mentioned below are a few things you must be aware of when inheriting a Philadelphia-based property.
The Repairs Could be Unexpected and Costly
The property you are about to inherit could require loads and loads of repairs because of the wear and tear it might have endured over the years. These repairs can be quite expensive, something that you should be mentally prepared for. So, before the inheritance process begins, it would be best to get a professional house inspection service to check the property. Doing so will give you a clear idea of how much you may need to spend on repairing different parts of the property.
Unexpected expenses are quite common during house repairs. You may think that only a certain part of the property requires maintenance work and repairs initially, but as the rebuilding process begins, you may find out plenty of other issues. Keeping all of this in mind, having some extra funds always comes in handy, helping you cover various unexpected expenses.
Be Wary of Debt
Unfortunately, many people tend to inherit massive debts when inheriting property. This could include multiple mortgages, unpaid taxes, and much more. What’s more, people who hold primary liens such as federal tax liens and lines of credit receive their payments first when selling a property. So, before you inherit the property, make sure to assess your standing with various debts like mortgage, judgment liens, and liens against the house for improvement, etc.
Maintenance Costs Can Escalate
As houses begin to age, the costs to maintain them grow higher, especially if they are older. Not performing routine maintenance on such properties, especially if you are about to inherit them can result in massive issues down the line. Older properties also have certain obsolete features that require special expertise. In cases like these, getting an expert would be ideal, as they will analyze your property in Philadelphia and inform you about the total cost to maintain and upgrade it to modern standards.
Calls to repair specialists for more significant issues also increase as properties age, and this is another thing you should know about inheriting a property in Philadelphia. Before deciding to take the house on as your own, you should have a professional inspection and estimates from at least three professionals, allowing you to see just what you’re up against if you hold onto the property. Often, when opening up a section of the house for one repair, other issues come to light, much like a domino effect, so keep extra funds on hand to cover unexpected expenses during the repair process. Remember, too, to request an estimate of the time you’ll be holding onto the property until it’s ready to be lived in or sold.
There Could be Tax Liability
Of course, inheriting a property does not always result in tax liability, it is best to remember that certain decisions you take could very well trigger it. If you plan to make any improvements, consider writing the expenses off. You must also consider property taxes and in case they are not a part of the current mortgage payment, consider familiarizing yourself with deadlines (if there are any). Inherited properties are subject to an adjustment (step-up basis) which directly affects your capital gains taxes.
There are Listing Costs Involved
Listing a property on a multiple listing service can be quite expensive as it involves repairs, prepping, showings, marketing, professional photographers, inspections, etc. Things can get even more difficult when real estate agents fail to provide you with a closing date, causing you to wait for months, if not years.
Fortunately, you can steer clear of all of these expenses and hurdles by getting in touch with the professionals at Philly Home Investor. These experts can make an instant cash offer for your property as-is, taking the burden off you right away.
What’s more, the experts at Philly Home Investor explain heirs the entire process, making things quite easy for you. Additionally, these professional investors will offer you closing dates, giving you complete peace of mind.
Unlike real estate agents, Philly Home Investor has a thorough process in which their professionals explain to you every tiny detail, including the money you could potentially make by selling your house directly vs. listing it. Inheriting a house can be a tricky process with so many complications involved. With Philly Home Investor by your side, however, you don’t have to worry about these things, as these experts will help you avoid any obstacles that stand in your way.
These experienced investors will help you understand your options when selling a property, ensuring you can make a well-informed decision. So, if you are about to inherit a property in Philadelphia and want experts to guide you through the inheritance process, consider contacting the pros at Philly Home Investor and get started right away.