The In’s & Out’s when Inheriting a Home
Inheriting a property can come with tons of questions and a long to-do list. Whether it’s a family home filled with memories or a property you didn’t expect to receive, knowing your options is key to making the best decision for your future.
For many, an inherited property brings uncertainty about what to do next. It’s important to know the process, assess the situation, and understand what steps to take.
Understanding the Legal and Financial Details
Before any final decisions it’s important to understand and handle the legal aspects of inheriting a property.
- Probate: A legal process of transferring ownership. This can vary in complexity depending on whether the deceased left a will.
- Outstanding Debts: Find out if the property has a mortgage, liens, or unpaid taxes. These financial obligations will become your responsibility if you take ownership.
- Title and Ownership: Verify that the property’s title is clear and legally transferable to you.
Evaluate the Properties Condition
Most inherited properties tend to be older properties that may require repairs or updates.
- Professional Inspection: Have a home inspection completed to understand the property’s condition.
- Maintenance and Upkeep: Consider ongoing maintenance needs if you plan on holding on to the home.
- Cost of Repairs: Consider the cost of repairs needed with the home’s market value and your financial situation.
Know Your Options
Once you’ve assessed the legal, financial, and physical aspects of the property, it’s time to decide what to do next. Here are your main options:
Keep the Home
- Primary Residence: Living in the home is certainly a great choice especially if it’s a good piece of property and has family history.
- Vacation or Second Home: If you don’t plan to live there full-time, using it as a vacation home is a good option.
Rent the Property
- Long-term Rental: Rent the home to tenants for steady, ongoing income.
- Short-term Rental: If the home is in a desirable location, platforms like Airbnb, VRBO, or even a local property management company can help you generate income.
- Considerations: Understand landlord responsibilities, property management needs, and local rental regulations.
Sell the Property
- Upgrading and Selling: Making smart financial upgrades can help increase interest to buyers, and in turn, increase your return.
- Selling As-Is: If you want a quicker and easier transaction, selling the property in its current condition may be a good option as well.
Work With Professionals
No matter what, surrounding yourself with a knowledgeable team can make the process smoother:
- Realtor: An agent with experience working with inherited homes can help you understand the options available as well as the market value.
- Attorney: A probate or estate attorney can guide you through the legal process and paperwork.
- Tax Advisor: Keep in mind the tax implications when inheriting and selling property. A tax professional can help you understand what to expect.
Inheriting a home can be a gift, but also a responsibility. Whether you choose to keep it, rent it, or sell, making an informed is the best decision.
If you’re facing decisions about an inherited property and aren’t sure where to start, we would be happy to connect you with trusted professionals and provide guidance on your options. Feel free to reach out anytime.