The home has been in your family for generations.
Selling might not be what you want to do, but it might be necessary to avoid unforeseen complications.
As if the grieving process wasn’t difficult enough.
Inherited property can quickly become a burden as the miscellaneous costs of maintenance, repair, and a host of other fees and taxes begin to pile up.
In this post, we’ll examine why and how to approach selling inherited property and what might be your best option.
Risks of retaining ownership
The costs of holding on to a property are many.
Sure, the home may hold high sentimental value. But the monetary value will quickly dwindle as unforeseen expenses begin to accrue.
Some of the hidden associated costs of inherited property include:
- Inheritance taxes
- Inspection costs
- Unpaid mortgages
- Risk of foreclosure
Additionally, the property can sometimes fall victim to vandalism and fall into further disrepair if left vacant for extended periods of time.
The selling process can also take much longer than what is financially viable.
Due to this, it’s important to consider the pros and cons of maintaining ownership, selling the property yourself, or selling it to an investor.
How to sell your inherited property
When deciding to sell your property, there are a few options (along with variables) to consider.
The most common method of selling a home involves working with a REALTOR®. Although this is a quick way to give the property wide market exposure, there are drawbacks.
After the sale, the REALTOR® will receive a commission (in addition to the various taxes and fees associated with the sale). This option could become more costly than the process and the headaches are worth.
Alternatively, you could try selling the property yourself. However, this requires an investment of time (and thus money) on your part.
Preparing the property for sale, showing the house, and marketing can become a long and drawn out process.
But if you’re wanting to sell the property quickly (for whatever reason), selling to an investor might be your best option.
Selling to an investor
Working with a reputable real estate investor can drastically reduce (and even prevent) out of pocket expenses.
Real estate investors are willing to buy properties in “as is” condition. This allows you as the seller to avoid incurring any additional costs that would be your responsibility with the selling options listed above.
Investors are also able to close on sales quickly, meaning the process isn’t drawn out longer than it has to be.
Investors don’t have to wait for financing approval, home inspections, or value appraisals.
Sometimes investors will even offer a variety of payment methods.
Most investors will be able to pay for the property with cash. Other options may include scheduled payments or assumption of the existing mortgage.
Though, offering full payment and buying property as is also means that the sale will be less than market value.
But the difference between the receiving a lower asking price can counter the accumulation of extraneous costs that comes from other methods (and from retaining ownership).
Do you have an inherited property you’re wanting to sell quickly? Contact us today to explore your options!