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.
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?
Tons of options open for you, but…
… we can help.
We’re seasoned investors in Augusta real estate, and we’re looking to buy several houses each month in the Augusta GA area. Every month we get calls from those who have inherited a house and are looking to sell the house… so the info below are some tips to help you navigate the process.
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 like common sense, but it’s crucial to understand that if the person who left you the property had a mortgage (and the property wasn’t fully paid off, which would be great!), you are now responsible for paying that mortgage—especially if you want to keep the property. In many cases, the mortgage lender may allow you to assume the existing loan, which means you take over the terms of the original mortgage. However, this option isn’t always available, and some banks may require you to refinance the loan into a new one under your name. If you don’t qualify for a new mortgage due to credit issues, income levels, or other factors, it could become very difficult to keep the property. In such cases, renting the home may not be a viable option either, as it could be harder to qualify for rental agreements without financial stability or approval from the lender. It’s essential to carefully consider your financial situation and the mortgage terms to determine your next steps.
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. You just need to be prepared to manage the property and the hassles that can go along with tenants and toilets.
3) Property ownership costs money.
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements.
Consider hiring a professional property inspector to give you a detailed rundown on what you’ll need to do within the next five years, along with estimated costs. Surprises are very, very expensive.
4) Selling a property for top dollar costs money.
If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy Augusta 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. 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.
6) Uncle Sam wants a piece of the action.
Before taking any action with your inheritance, it’s absolutely essential to consult with both tax and legal professionals. Inheriting property can have significant legal and tax implications that may affect your financial situation more than you realize. There are property taxes, potential capital gains taxes, and income tax considerations that could dramatically impact the overall cost of owning and managing your inherited investment. Depending on the type of property, its value, and how you choose to handle it—whether you sell, rent, or keep it for personal use—the tax consequences can vary widely. A tax advisor can help you understand the potential tax liabilities, while a legal professional can guide you through the inheritance process to ensure you comply with all applicable laws. Taking the time to seek expert advice will help you make informed decisions and avoid costly mistakes down the road.
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 Augusta investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Augusta – 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).