First, please accept our deepest condolences for your loss. Losing a loved one is never easy, and navigating the complexities of property ownership during such a difficult time can feel overwhelming.
You may find yourself wondering, “I’ve inherited a house—what should I do with it?” Should you rent it out? Should you sell it? If selling is the best option, what’s the best way to approach the process?
The good news is that you have plenty of options to consider, and we’re here to help you explore them.
As experienced real estate investors in Birmingham, Alabama, we specialize in assisting people just like you. Every month, we work with individuals who have inherited properties and are looking for a simple, hassle-free way to sell.
If you’re unsure where to start, the following tips will provide some helpful guidance as you navigate the decision-making process. And remember, you’re not alone—we’re here to support you every step of the way.
I Inherited A House, What To Do Next?
Here Are a Few Key Considerations to Help You Make the Right Decision:
1) Ensure the Mortgage Is Paid.
If the inherited property has a mortgage (unless it’s fully paid off, which is a great situation), you’ll need to keep up with the payments if you want to retain ownership. Some banks may allow you to assume the loan, while others might require you to refinance into a new one. Be mindful that if you don’t qualify for a new loan, renting the property may not be a viable option.
2) The Investment Is Only as Good as the Manager.
Managing a property comes with responsibilities like dealing with brokers, maintenance, tenants, rent collection, and more. If these tasks aren’t the best use of your time or energy, consider hiring a professional property manager—or cash out by selling the property. For those who decide to keep and rent the property for extra income, be prepared for the challenges that can come with managing tenants and handling repairs.
3) Property Ownership Costs Money.
Inherited properties often require significant maintenance and improvements. It’s a good idea to hire a professional property inspector who can provide a detailed assessment of necessary repairs and their estimated costs over the next few years. Addressing surprises early can save you from unexpected expenses later.
4) Selling a Property for Top Dollar Costs Money.
Maximizing the sale price often means investing in repairs, kitchen updates, landscaping, and general cleanup. If you’d prefer to avoid the hassle of these tasks, don’t worry—we purchase houses in Birmingham for cash, as-is, allowing you to sell quickly and without additional effort.
5) Evaluate the Market’s Growth Potential.
If the local real estate market is growing faster than other investment opportunities, it may be worth holding onto the property. We can help you assess the current value of your property compared to its long-term rental potential. If reinvesting the equity in another venture offers better returns, you might consider selling. Otherwise, if the neighborhood is appreciating in value, holding on could be a wise decision.
6) Account for Taxes and Legal Implications.
Inherited properties come with potential tax consequences, including property taxes and income taxes. Consult with tax and legal professionals to fully understand these implications before making any decisions. The financial impact could significantly influence your next steps.
7) Explore All Your Options.
In some cases, a lease-option agreement might be a suitable solution, allowing you to rent and sell the property simultaneously. While these deals can be complex, our expertise in the Birmingham market can help you navigate the process and achieve the best possible outcome.
8) Compare Different Scenarios.
We’re here to help you analyze various options for your property. This includes estimating the value of selling it today without any improvements, determining the highest possible price with upgrades, and calculating the potential returns from keeping it as a rental. Together, we can find the approach that best aligns with your goals.
Have questions or need assistance? We’re just a call away!