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I Inherited a House, What To Do? – Should I Rent or Sell in Phoenix?

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. We understand that inheriting a house can be both a blessing and a curse.

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? What about the renovations? Should I put a bunch of money into this before trying to sell it? The answer to these questions is not always crystal clear.

Tons of options open for you, but…

… we can help.

As experienced investors deeply rooted in the Phoenix real estate scene, we have our sights set on acquiring multiple properties every month throughout the Phoenix, Arizona area. It’s a common occurrence for us to receive calls from individuals who have recently inherited a property and are interested in selling. Below, we’ve compiled some valuable tips to assist you in navigating this process seamlessly. We hope by the time you’re finished reading you have a better idea about what option is best for you.

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 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. The worst thing you could do is disregard these payments because the balance will accrue and it will eventually eat into your profits when you sell it.

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 but only if they themselves have the bandwidth to manage the property or pay to hire it out.. You just need to be prepared to manage the property and the hassles that can go along with tenants and toilets. If you’re unaware of the quality of tenant or how much deferred maintenance each property has then it would be wise to familiarize yourself with these answers quickly to avoid running into problems within a few months.

3) Property ownership costs money.

It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements.

You might want to contemplate the idea of enlisting the services of a professional property inspector. They can provide you with a comprehensive assessment of what maintenance and repairs might be necessary in the next five years, complete with estimated costs. Unexpected surprises in property maintenance can be remarkably costly, so a proactive approach can save you a lot in the long run.

4) Selling a property for top dollar costs money.

In a perfect world, everyone would get top dollar for their inherited home. The good news is that it is attainable! However, choosing to go this route will require a lot more time and money. You will be expected to get that house up to its current year standard of renovations and bring the best possible product to market. You will need to find contractors to work on the house and a trustworthy agent to guide you through the process. For those with the time and money to make this a reality it could totally be worth it. However, if you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy Phoenix 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. We do this FREE of charge! 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. This option works well especially if the property is paid off and you aren’t required to come up with a mortgage payment every month.

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. The Tax Man does not care whether or not you yourself owned this property you’re looking to sell. He wants his piece of the pie and he will get it. Before taking any action selling this property we recommend talking with a licensed professional to determine what taxes you’ll be responsible for. This goes for a top dollar sale or selling your property for cash quickly. Don’t skip this step!

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 Chandler investment experience can help you win. Sometimes selling your property out right is not the best option and you’re looking for a more creative way to get it done. We help you strategize and want to help you make the most educated decision on how to sell your property.

8) Compare a few scenarios.

We’ll help you determine prices for any property near Chandler – 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). Give us a call and we can help you figure out how to navigate your specific situation!

Just call us today at CALL US! (480) 818-6535‬ or contact us now for more information
on how we can make you a fair cash offer on your inherited house today!

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