First and foremost, our heartfelt condolences for your loss. We understand that inheriting a property can be overwhelming, especially when you’re already dealing with so much emotion. Deciding what to do with an inherited house can be a daunting task, but rest assured, we’re here to lend a helping hand.
You might find yourself asking, “I inherited a house, what now?” Should you consider renting it out? Or perhaps selling it is the better option? We recognize the multitude of decisions you’re faced with, and we’re here to guide you through the process.
As seasoned investors specializing in Reston real estate, we’re actively seeking to purchase properties in the Reston, Virginia area on a monthly basis. We frequently receive inquiries from individuals who have inherited houses and are seeking to sell them. Therefore, we’ve compiled some invaluable tips to assist you in navigating this journey.
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.
First and foremost, ensure that any existing mortgage on the property is addressed. While it may seem obvious, navigating mortgage obligations can vary depending on the lender’s policies. Some lenders may allow you to assume the loan, while others may necessitate refinancing. Understanding your options is crucial in determining the best course of action. If you are falling behind or unable to manage another mortgage please call us and let us help you with a solution!
2) The investment is only as good as the manager.
Property management entails a myriad of responsibilities—from tenant interactions to maintenance tasks. If managing these aspects isn’t within your realm of expertise or interest, consider enlisting the services of a professional property manager. Alternatively, selling the property outright may alleviate the burdens associated with ongoing management. You can expect a property manager to charge 10-20% of the monthly income. Take these numbers into consideration when you are deciding whether or not this would be a good financial decision.
3) Property ownership costs money.
Owning a property inevitably costs money over time as well for maintenance, repairs, etc… Conducting a thorough inspection with a professional can shed light on any impending repairs or renovations. Being proactive in addressing maintenance needs can prevent costly surprises down the line. Don’t underestimate the cost of deferred maintenance, exterior maintenance, routine maintenance and wear and tear.
4) Selling a property for top dollar costs money.
If you inherited a house. preparing a property for a market sale can be a time-consuming and costly endeavor. This can mean minor repairs or major updates to bring the property to its full potential and maximize the sale. If the prospect of undertaking renovations is daunting, selling the property as-is may be a viable solution. At [Your Company Name], we specialize in purchasing properties for cash, alleviating the need for extensive repairs or updates. We buy Reston houses for cash, as-is.
5) If the market will continue to grow faster than your other options, hang on to the investment.
Consider the long-term prospects of retaining the property as an investment. Analyzing market trends and potential growth can help inform your decision. If the property’s value is projected to appreciate over time, holding onto it may prove to be a lucrative investment strategy! Ask us for a consultation, we are investors after all!
6) Uncle Sam wants a piece of the action.
Consulting with tax and legal professionals is essential in understanding the tax implications associated with inheriting a property. From property taxes to potential capital gains, thorough comprehension of the tax landscape can help mitigate financial repercussions.
7) Consider all your options.
In certain scenarios, exploring unconventional solutions such as lease-option agreements may offer a blend of renting and selling benefits. Our expertise in Reston investments positions us to assist you in navigating complex arrangements for optimal outcomes.
8) Compare a few scenarios.
We’re here to provide comprehensive insights into various scenarios, including selling the property in its current condition, maximizing its market value through renovations, or retaining it as a rental asset. Understanding the potential outcomes can empower you to make informed decisions aligned with your goals.