Are you prepared to pay nearly $2,500 in property taxes each year? That’s the typical annual fee Americans pay on their homes. And if you inherited an unwanted property, you may be stuck paying that — plus other fees.
What should you do if you inherited property you don’t want? Stick around to learn about your options!
Sell Property When You Inherit It
When you inherit unwanted property, your best bet may be to sell it. After all, you might not want to make mortgage payments or pay property taxes. And you might not want to deal with rewriting an insurance policy and making payments.
You could be trapped under high payments if the home is in an area with a high cost of living, too. As the individual who inherited a house, you are responsible for outstanding debts. This includes any lingering debts for construction work.
And a home with lots of renovation needs could set you back thousands of dollars. Fortunately, you can receive a cash offer on a home that needs updates. You won’t have to invest your savings in new HVAC components or foundation repair.
Turn a Home into a Rental Property
If you’re interested in entering the real estate game, you could turn the home into a rental property. This can be an attractive option if the real estate market is tight and rental properties are in demand.
Even with income from a tenant’s monthly rental payments, you’ll still be responsible for payments as a homeowner. You’ll need to create spreadsheets to ensure that you’re charging enough rent to cover a mortgage, homeowner’s insurance, and taxes. And, of course, you’ll want some money stashed away for repairs.
Keep in mind that working as a landlord can be a chore — especially with demanding tenants. You need to handle property maintenance, mowing, and contract management. Aim to screen applicants through an interview process and background check to ensure that you choose responsible and clean renters.
Consider Moving In
As another option, you can move into the home. If you want to be in the area or can’t afford a down payment on a new home, this can be a good option. You’ll need to sort out the details, however, if you jointly inherit the property with siblings.
Alternatively, you can keep the home as a second property if it’s in a desirable area or you have family nearby. Just make sure you have money in your budget to afford another mortgage payment.
And remember that you’ll need to keep up the curb appeal and routine maintenance if you plan to sell down the road. An area on the rise could bring enhanced property values over time!
Determine How to Handle Inherited Property
When you’ve inherited property, knowing what to do with it can feel overwhelming. If you don’t want the burden of ongoing responsibilities, consider selling the property quickly or renting it out. Or, if you need a place to live, look into making the property your new home.
To find more real estate tips, check back soon for new articles!
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