First, we’re so sorry for your loss. This can be a very challenging time for many reasons. There are likely many things that need your attention and decisions to be made.
You might be thinking, “I inherited a house, what to do with this house?” Should I rent it? Should I sell it? How should I sell it?
There are plenty of options open for you, and…
… we can help.
We are local to the Fort Worth area and have more than 25 years experience in the real estate business. We have the ability to assist you in selling your home the traditional route on the open market and we’re also seasoned investors in Fort Worth real estate. We are looking to buy houses in the Fort Worth TX 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 are a few important considerations to help you with the decision making process:
1) Find out the status of the mortgage.
You may want to do a title search. A title company or an attorney can help you with this. The search will show if there are any issues like outstanding property taxes, liens, home equity lines of credit, outstanding HOA fees, judgements or reverse mortgages connected to the property.
If there is still a mortgage you need to find out if the mortgage holder was current with their payments. If there has been any gap in payments it is very important to bring those payments current as soon as possible. The executor of the estate should contact the mortgage company to find out exactly where things stand.
If there is still a mortgage, some banks will allow you to assume the loan, while others may require you to refinance into a new loan.
2) Complete the ownership process.
Depending on how you inherited the house you may or may not have to go through probate to finally legally own the property. If you’ve inherited the home through a living trust or life estate deed and the property isn’t being contested then you may be able to avoid going through probate. However, if the person who passed away left a will in Texas, that will must be submitted to the court. The court will then determine whether or not the probate process is necessary. Either way it can take time. However, it may be possible to sell a property even during the process of probate. A real estate attorney or a real estate agent who specializes in probate may be able to help you with this process.
3) What to do? Should I rent or sell?
The investment is only as good s the manager. If dealing with brokers, maintenance, tenants, rent collection and all the nuances of property management isn’t optimal for your situation, consider selling the inherited property to a direct sale home buyer for cash. Some people who inherit homes decide to keep the house and either live in it or 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. Here is a list of some of the most common, expensive repairs home owners make.
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 Worth houses for cash, as-is.
5) If the market will continue to grow faster than your other options, hang on to the investment.
We can help you analyze the value of your property today versus the long-term benefits of renting. If you can use the equity in your property in another way that outpaces the performance of the real estate market, you should. If you don’t have anything better to do with the money and the neighborhood is rising in value, hang on – real estate can be a great investment if you know how to correctly read the market.
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 North Richland Hills investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near North Richland Hills – 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).