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?
Tons of options open for you, but…
… we can help.
As seasoned investors in the Memphis real estate market, we are always on the lookout for houses to purchase in the Memphis, TN area. One common scenario we come across is homeowners who have inherited a house and are looking to sell. If you find yourself in this situation, here are some tips to help you navigate the process:
- Determine your goals: Before you start the selling process, it’s important to identify your goals. Do you want to sell the property quickly, or are you willing to wait for the right buyer? Are you looking for the highest possible price, or are you more interested in a hassle-free transaction? By answering these questions, you can better understand your priorities and make informed decisions throughout the process.
- Get an appraisal: It’s important to get an accurate appraisal of the property’s value before you sell. This will help you set a fair asking price and ensure that you are getting a reasonable offer from potential buyers.
- Consider your selling options: There are several ways to sell an inherited property, including listing it on the market, selling to a direct buyer, or auctioning it off. Each option has its pros and cons, so it’s important to consider which one is best for your specific situation.
- Prepare the property for sale: In order to attract potential buyers, it’s important to prepare the property for sale. This may involve making repairs or upgrades, staging the home, and ensuring that it is clean and presentable.
- Work with a professional: Selling an inherited property can be a complex process, so it’s important to work with a professional who has experience in this area. This could be a real estate agent, an attorney, or a direct buyer like us. A professional can help guide you through the process and ensure that you get the best possible outcome.
I Inherited A House, What To Do Next?
If you’re thinking about selling your property, there are several important considerations to keep in mind to help you make the right decision. Here are a few key factors to consider:
- Your financial goals: One of the most important considerations when selling a property is your financial goals. Are you looking to maximize your profit, or are you more interested in a quick and hassle-free sale? Understanding your financial goals will help you determine the best course of action when selling your property.
- The local real estate market: The state of the local real estate market is another important consideration. Is the market currently in favor of buyers or sellers? How long are properties typically on the market before selling? Understanding these market trends can help you set realistic expectations for the selling process.
- The condition of your property: The condition of your property is another important factor to consider. Is your property in good condition, or does it require repairs or upgrades? Properties that are in better condition typically sell for higher prices and may attract more potential buyers.
- The selling process: Selling a property can be a complex process, and it’s important to understand the different options available to you. Do you want to list your property with a real estate agent, or would you prefer to sell it directly to a buyer? Each option has its pros and cons, so it’s important to weigh these factors carefully.
- Your timeline: Finally, it’s important to consider your timeline when selling your property. Do you need to sell quickly, or are you able to wait for the right buyer? Understanding your timeline can help you set realistic expectations for the selling process and make informed decisions throughout.
1) Make sure the mortgage is paid.
This may sound obvious, but if the person who left you a property also had a mortgage (unless it had no mortgage and was paid off, which is great!), you have to pay it (assuming you want to keep the property). Some banks will allow you to assume the loan, while others may force you to refinance into a new loan. If you don’t qualify for a new loan, renting may not be an option for you.
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, hire a professional to help you or cash out now. Some people who inherit homes decide to keep the house and 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.
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 Memphis 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 Memphis investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Memphis – 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).