Dealing with property matters during such a trying time can be particularly challenging. You might be wondering, “I’ve inherited a house, what should I do now?” Should you lease it or put it on the market? And how should you approach the selling process? You have various options, and we’re here to help you explore them.
As experienced real estate investors in Chicago, we purchase numerous properties each month throughout the Chicagoland area. We frequently receive questions from individuals who have inherited a house and are considering selling it. Below, we offer some advice to help you through this process.
Inherited Property: What’s Next?
Here are some crucial factors to consider in making an informed decision:
- Ensure the Mortgage is Managed
It might seem apparent, but if the inherited property still carries a mortgage, you’ll need to keep up with the payments to maintain ownership. Some lenders might allow you to assume the current loan, while others could require refinancing. If obtaining a new loan isn’t an option, renting the property may not be feasible.
- Proficient Property Supervision
Overseeing a property entails engaging with agents, upkeep, occupants, rental gathering, and other administrative duties. If this doesn’t match your lifestyle, contemplate enlisting a skilled property manager or selling the property. Renting can yield additional revenue, but it necessitates readiness for the duties of property ownership.
- Ownership Costs
Inherited properties frequently demand substantial upkeep and enhancements. Engaging a qualified property inspector can furnish a comprehensive assessment of essential repairs and their projected expenses for the next five years. Understanding these potential costs can prevent expensive unexpected situations.
- Selling for Optimal Value
Maximizing the sale price of a property often involves making repairs, updates, and aesthetic enhancements. If you’d rather not manage these projects, we buy homes in the Chicagoland area for cash, as-is.
- Market Expansion versus Alternate Investments
We’re here to assist you in evaluating your property’s current worth compared to the potential advantages of leasing it. If reallocating the equity from your property into other investments could offer better returns than the real estate market, it may warrant consideration. On the other hand, if the neighborhood is experiencing appreciation, retaining the property could prove to be a prudent investment.
- Tax Ramifications
Seeking advice from tax and legal experts regarding your inheritance is crucial. There are substantial property and income tax ramifications that can impact the expenses associated with owning your investment.
- Examining Every Possibility
Sometimes, a lease-purchase agreement could be a feasible option, enabling you to lease and sell concurrently. Although these agreements can be intricate, our expertise in the Chicago market can help navigate you through the procedure.
- Assessing Different Situations
We can assist you in assessing the potential selling prices of properties in Chicago, IL—whether you opt to sell as-is, sell at the peak market value, or retain it as a rental property. This involves evaluating expenses and anticipated rental earnings.
Please don’t hesitate to reach out to us today at The Schneider Group or get in touch for further details on how we can provide a competitive cash offer for your inherited property!
Contact The Schneider Group at 847.347.6288