First, we’re so sorry for your loss. This can be a very challenging time for many reasons, and dealing with property ownership is tough at the best of times.
You’re thinking, “I inherited a house, what to do with this house?” Should I rent it? Should I sell it? How should I sell it?
Tons of options open for you, but…
… we can help.
We’re seasoned investors in Fort Myers real estate, and we’re looking to buy several houses each month in the Fort Myers FLORIDA area. Every month we get calls from those who have inherited a house and are looking to sell the house… so the info below are some tips to help you navigate the process.
I Inherited A House, What To Do Next?
Here’s a few important considerations to help you make the right decision:
1) Make sure the mortgage is paid.
Inheriting a property can be a bittersweet experience. While it’s a thoughtful gesture from the deceased, it’s important to remember that the property might come with financial obligations. If there’s an outstanding mortgage on the house, you’ll be responsible for the remaining balance – assuming you decide to keep the property. There are usually a couple of options depending on your financial situation and the lender’s policies. Some banks might allow you to simply take over the existing mortgage, stepping into the shoes of the previous owner. This can be beneficial if the original loan had favorable interest rates. However, other lenders may require you to refinance the mortgage entirely. This means securing a new loan in your own name, which could come with different interest rates and terms. If your financial situation has changed or you weren’t initially planning on owning property, qualifying for a new mortgage might be a hurdle. In that case, renting the property out could be an alternative way to manage the situation, but it depends on your ability to find tenants and cover the mortgage payments with the rental income.
2) The investment is only as good as the manager.
If dealing with brokers, maintenance, tenants, rent collection and all the nuances of property management isn’t the best use of your time, hire a professional to help you or cash out now. Some people who inherit homes decide to keep the house and rent it for extra income. That’s a great strategy for sure. You just need to be prepared to manage the property and the hassles that can go along with tenants and toilets.
3) Property ownership costs money.
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements.
Consider hiring a professional property inspector to give you a detailed rundown on what you’ll need to do within the next five years, along with estimated costs. Surprises are very, very expensive.
4) Selling a property for top dollar costs money.
If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy Fort Myers houses for cash, as-is.
5) If the market will continue to grow faster than your other options, hang on to the investment.
Deciding between owning and renting your property depends on your financial goals and the real estate market itself. Let’s break it down. If you have the opportunity to leverage the equity you’ve built in your property for an investment with a higher potential return than the projected growth of your local housing market, then selling and renting might be the smarter move. This could involve starting a business, investing in stocks, or even paying down high-interest debt.
On the other hand, if you don’t have pressing financial needs and your neighborhood is experiencing steady appreciation, holding onto your property might be a better long-term strategy. Real estate can be a fantastic investment, offering a combination of value growth and rental income. However, the key lies in understanding the market. Researching local trends and projections will help you make an informed decision about whether to ride the wave of appreciation or seek out a more lucrative opportunity for your money.
6) Uncle Sam wants a piece of the action.
Don’t forget to discuss your inheritance with tax and legal professionals before you take action. There are major property and income tax consequences that will dramatically impact the cost of owning your investment.
7) Consider all your options.
In certain situations we may be able to help you structure a lease-option agreement that allows you to rent and sell at the same time – capturing the best of both worlds. These kinds of deals can be complicated, but our Fort Myers investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Fort Myers – if you sold it today without doing any work, the highest price the market will bear, and the projected value of keeping it as a rental (along with the costs).