If you’ve inherited a property and you’re thinking about selling it, you might have more options than you realize. Read this blog post to find out the 3 financial options you can pursue when selling an inherited property in Fort Myers…
Inheriting a property from a loved one can be a poignant gesture, but the reality is that an inherited property isn’t always a convenient asset to own. It comes with additional bills, expenses, maintenance, upkeep, and stress, making it a potentially time-consuming responsibility.
So if you are thinking of selling, you might first be thinking about selling with the help of a real estate agent. However, you might be surprised to learn that you have options that you may want to consider as well. In fact, did you know you have 3 financial options you can pursue when selling an inherited property in Fort Myers?
First, Let’s Talk About Selling Through An Agent…
While selling your inherited property through a real estate agent can be a smooth process, it’s important to consider the time and financial investment involved. First, the agent might recommend improvements or repairs to maximize the selling price. This could mean additional upfront costs before you even list the property. Then, there are closing fees on top of the agent’s commission, which is typically a percentage of the final sale price. This commission can be a significant chunk of your profit, so factor that into your calculations. Finally, the entire process, from listing to closing, can take several months. While an agent’s expertise can streamline the sale, it’s definitely a time commitment.
So, what are the other options?
Second, Let’s Look At The Other Options…
Option #1. Refinance
An alternative, akin to a form of selling, involves refinancing the property through a bank and utilizing the released funds for other purposes. While retaining ownership of the house, this financial option may be considered by individuals who are looking to liquidate assets to obtain additional funds.
You can still use the house, or rent it out, and you’ll need to pay back the loan to the bank, but it’s one option to consider.
Option #2. Rent To Own
Selling a house to a tenant over the long-term can be a strategic move that benefits both parties involved. This option is often appealing to tenants who aspire to own a home but currently face challenges in securing a mortgage. By entering into a rent-to-own agreement, these tenants have the opportunity to rent the property with the potential to buy it in the future. This arrangement allows them to build up savings or improve their creditworthiness over time, which are common obstacles for many aspiring homeowners.
From the seller’s perspective, offering a rent-to-own option can attract a broader pool of potential buyers. It provides steady rental income while also positioning the property for eventual sale at a potentially higher price, reflecting future market conditions. Moreover, rent-to-own agreements typically involve a non-refundable option fee or an additional amount paid above the monthly rent, which acts as a form of down payment towards the purchase price. This upfront payment can provide immediate financial benefits to the seller and reinforces the tenant’s commitment to eventual ownership.
Overall, a rent-to-own arrangement can be a flexible and mutually beneficial solution in real estate transactions. It aligns the interests of tenants who desire homeownership but face financial or credit challenges with sellers seeking to maximize the value of their property while generating consistent rental income. As with any real estate transaction, clear terms and legal protections should be established to ensure a smooth and equitable process for both parties throughout the rental period and eventual purchase.
Option #3. Sell Fast For Cash
One little-known option that owners of inherited properties might enjoy is the ability to sell the house fast for cash. Instead of selling through an agent (and hoping they can find a buyer, which can take months), you can work with a house-buying company (like what we do here at Core Real Estate Properties) and they’ll often buy your house as-is for cash, usually in as little as a few days. It’s fast, simple, and doesn’t require any work.
There you have it! 3 financial options you can pursue when selling an inherited property in Fort Myers!