Top 5 Options When You Inherit Property
There are many people who will inherit property during some point of their life. Inheriting property, while meant to be a blessing by the person willing it to you, can feel like an overwhelming process. Most people are usually trying to navigate the decisions about the property during an emotional period of their life, which can add in to the stress.
To help simply the process here is the breakdown of the top 5 options you can choose when you inherit property.
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Refuse to Accept the Inheritance
This might sound like a bad option, but there are some times when this option makes sense. To determine if this is the best option for you, you will need to find out some information about the house. If the deceased owes money on the mortgage and taxes and there is not enough in the inheritance to cover the expenses, you could end up owing money. If this is the case, and you do not want to take on the debt, you can refuse the inheritance.
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Move In to the House
If you have inherited a house that you love and have fond memories of, you have the option to accept the inheritance and move into the house. If you are the sole heir the process will be relatively easy, especially if the house is paid off with no mortgage or loans. If you are a co-heir and you are the only one interested in living in the house you will need to buyout the other heirs.
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Sell the House “As Is”
If you want to accept the inheritance, but are not interested in living in the house, you have the option to sell it quickly. You will see this most often on signs for estate sales. You will generally not gain top dollar on the house by going this route, but it is a good way to turn the house over quickly.
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Flip the House
If you are interested in selling the house, but would like to use it as more of an investment, you can fix the house up and sell it for top dollar. This can be costly, but can also be relatively simple if you hire the right professionals. Have a home inspector look at the house to pinpoint any areas that need to be repaired. Hire a contractor to complete any of the maintenance, repair or upgrades that the house needs. Contract with a local real estate agent to sell the house.
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Turn it into an Investment
If you are interested in taking on a real estate investment, this could be a great chance for you to try it out. Turning the house into a rental property will allow you to make a continual profit from it each month when you receive the rent check.
However, being a landlord is a big responsibility. You can also hire a property manager to handle the day-to-day tasks of your rental if you do not want to take it all on yourself.
The most important decision when you inherit property is to be mindful to not make an emotional decision. Losing a loved one is difficult and it can make it even harder to make big decisions. Carefully weigh the pros and cons of each option before rushing in to making a decision.