Are you one of those who just inherited a house and don’t know what to do with it? Inheriting your parents’ or family house is probably the most confusing way to acquire a property. You suddenly become the owner of a house and don’t quite know what to do with it. You have a number of options to proceed. For example, you might want to keep the house and live in it or you may decide to sell it. But your decision depends on a number of factors.
Here are a few quick tips that can help you make the most of your inherited property:
Start with Mortgage
Usually inherited property or family houses are paid but this is not the case if it’s a retirement house. While investigating about the mortgage, you must keep reverse mortgage in mind. Even if the mortgage was paid off, it might be the case that your parents or whoever owned the house had taken out a reverse mortgage. If you are planning to keep the house, you can assume the mortgage of your parents. But if you want to sell or rent out the house, you might require refinancing the property to claim the ownership. So if the house you have inherited has a mortgage and you have enough money to pay off the montage, you can do whatever you want with the house. But if you can’t pay off the mortgage, you are left with just one option – keep the house and live in it. Even that’s not a bad deal!
Give the Property a Physical
After settling all the finances and finalizing the legal paper work, give the house a brief physical. Usually inherited properties are old and need a lot of maintenance and if you don’t have enough money to invest in repairing and maintenance, don’t put it on the market for sale. With a worn out house you can’t find good buyers. Keep the house for a while and when you have all the money to renovate it, consult a real estate agent to put the house on market. This way you will get the best deal on your inherited house.
Usually estate tax laws keep on changing dynamically, so it is better to consult a real estate professional who can guide you about the current estate tax exemption situation.
It’s true that inheriting a house is not as easy as it seems, but with a few right moves you can get the best deal on your inherited house.