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? These questions can feel overwhelming, especially when you’re already dealing with the emotional and logistical complexities of losing a loved one.
There are tons of options open for you, but navigating them can be daunting. That’s where we come in. We’re seasoned investors in Boston real estate, and we’re looking to buy several houses each month in the Boston MA area. Every month we get calls from those who have inherited a house and are looking to sell it. We understand the unique challenges you face, and we’re here to help you through this process step by step.
By providing personalized advice and support, we aim to make this transition as smooth as possible. Whether you decide to keep the house and rent it out for additional income or sell it and move on, our expertise can guide you to make the best decision for your situation. Below, you’ll find some valuable tips to help you navigate this process and ensure you make an informed choice.
If you have any questions or need further assistance, feel free to reach out to us. We are here to support you during this difficult time, offering both professional guidance and a compassionate ear. Let us help you turn this challenging situation into a manageable and even positive experience.
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.
This may sound obvious, but it is important to remember that if the person who left you a property also had a mortgage on it (unless, of course, it had no mortgage and was completely paid off, which is great!), you will still be responsible for paying it (assuming you want to keep the property). Some banks will allow you to assume the existing loan, which means you take over the payments under the current terms. However, other banks may force you to refinance into a new loan with different terms. This process can be more complicated and may depend on your creditworthiness and financial situation. If you don’t qualify for a new loan, you might find that renting the property out to cover the mortgage payments is not an option for you, which could leave you with limited choices regarding the property’s future.
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, consider hiring a professional property manager to help you navigate these tasks efficiently. Alternatively, you might decide to cash out now to avoid the ongoing responsibilities. Some people who inherit homes decide to keep the house and rent it out for extra income, which can be a great strategy to generate a steady stream of revenue. However, you need to be well-prepared to manage the property, including handling any potential issues that can arise with tenants, such as disputes or late payments, and the inevitable maintenance problems, like plumbing issues or repairs. Being a landlord requires both time and effort, but with the right preparation and support, it can be a rewarding endeavor.
3) Property ownership costs money.
It’s quite rare to come across a building that has been perfectly maintained over the years. Most inherited houses often require significant improvements and renovations to bring them up to modern standards.
To ensure you have a clear understanding of the necessary work, consider hiring a professional property inspector. By doing so, they can provide you with a detailed rundown of the repairs and upgrades you’ll need to address within the next five years. The inspector can also potentially offer estimated costs for each item on the list, helping you budget accordingly. (Note: In many cases a home inspector is also a general contractor though in some states they are legally not allowed to provide cost estimates as a major conflict of interest.) It’s important to remember that unexpected surprises in home repairs can be very, very expensive, and having a thorough inspection can help mitigate some of those unforeseen costs.
4) Selling a property for top dollar costs money.
If you don’t want to deal with the hassle and time-consuming tasks of making repairs, updating kitchens, improving landscaping, and overall cleanup, don’t worry. We understand how stressful and overwhelming these tasks can be. That’s why we offer a convenient solution for homeowners looking to sell quickly and without any additional work. We buy Boston houses for cash, in their current condition, as-is, so you can move on with your life without any delays or extra effort.
Though if you don’t like the offer we present, we can also list your property on the market for you at potentially a reduced cost. Gaeta Properties also holds a real estate broker license and a team across the country to be able to help you sell your home.
5) If the market will continue to grow faster than your other options, hang on to the investment.
We can help you thoroughly analyze the current value of your property compared to the long-term benefits of renting it out. Our detailed analysis will provide you with a comprehensive understanding of your property’s market position today and how it might perform in the future. If you find that you can utilize the equity in your property for another investment opportunity that outpaces the performance of the real estate market, it would be wise to consider that option. However, if you do not have any better investment opportunities for the money and you notice that the value of the neighborhood is steadily rising, it might be best to hold onto your property. Real estate can be a highly lucrative investment, especially if you have the ability to accurately interpret market trends and make informed decisions.
6) Uncle Sam wants a piece of the action.
Don’t forget to discuss your inheritance with both tax and legal professionals before you take any action. It is crucial to understand the potential implications fully. There are significant property and income tax consequences that can dramatically impact the overall cost of owning and maintaining your investment. By consulting with these professionals, you can ensure that you are making informed decisions and taking necessary steps to mitigate any financial risks associated with your inheritance. Taking the time to seek professional advice can save you from unexpected costs and provide you with a clearer understanding of your financial responsibilities.
7) Consider all your options.
In certain situations, we may be able to assist you in structuring a lease-option agreement that provides the flexibility to rent out your property while simultaneously positioning it for sale, effectively capturing the benefits of both renting and selling. These kinds of deals can be intricate and involve numerous details, but our extensive investment experience in the Boston real estate market can guide you through the complexities and help you achieve a successful outcome. By leveraging our expertise, you can navigate the challenges and maximize the potential of your property in this dynamic market.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Boston – 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).