Should You Sell or Keep an Inherited House?
If you've recently inherited a house, you may be considering your options. Should you sell the property or keep it? It's a tough decision to make, and there's no one-size-fits-all answer. In this blog post, we'll explore some of the pros and cons of each option to help you make a decision that's right for you.
Selling an Inherited House -
There are a few reasons why selling an inherited house might be the best option for you.
1. If the house is in need of repairs, it can be expensive to bring it up to code.
The roof needs to be replaced, the windows are drafty, and the furnace is on its last legs. When a house needs repairs, it can be tempting to put them off. After all, home improvement projects can be expensive, and it can be difficult to find the time to tackle them. However, it’s important to remember that neglecting necessary repairs can end up costing even more in the long run.
For example, a small leak in the roof can quickly turn into a major problem if it’s not fixed, and an inefficient furnace will end up inflating your energy bills.
Of course, taking on a home improvement project can be daunting. However, there are a few simple steps you can take to make the process easier.
set a budget and stick to it.
get multiple estimates before choosing a contractor.
And don’t be afraid to ask for help from family and friends. By taking these steps, you can ensure that your home repair project is completed on time, on budget, and with minimal stress.
2. Unless you're already living in the area, it can be difficult to manage a property from afar.
The rental market is as hot as ever, with more people than ever looking for a place to call home. For many investors, this presents an opportunity to make a steady income from rental properties. However, it can be challenging to manage a rental property from afar.
The key is to develop a clear system for communication and to delegate tasks to reliable individuals who can act on your behalf.
First, you'll need to establish a clear system for communicating with your tenants. This can be done via email, phone, or an online portal. Next, you'll need to decide who will be responsible for tasks such as collecting rent, handling maintenance requests, and showing the property to prospective tenants.
Finally, you'll need to put together a team of trusted professionals who can help you with all aspects of the rental process. By following these steps, you can successfully manage a rental property from afar.
3. If you're not emotionally attached to the property, selling it may be the best way to releasing any sentimental attachment.
Normally, when a family member dies, the last thing that survivors want to do is sell the deceased's house. After all, the house may be full of memories, and getting rid of it can feel like saying goodbye to the person who lived there.
In some cases, survivors may sell an inherited house simply to release themselves from the sentimental attachment they feel towards it. By doing so, they can move on with their lives and create new memories in a new home.
Keeping an Inherited House -
If you decide to keep an inherited house, there are a few things to consider.
1) First, are you prepared to take on the responsibilities of being a homeowner?
This includes making any necessary repairs, maintenance, utilities, and paying property taxes and insurance.
Unexpected repairs can add up quickly, especially on older homes. Has the electrical panel been replaced? Is the plumbing PVC or cast iron? Cast iron over time will rust and corrode requiring replacement to PVC. This can happen as early as 30 years after a house was built depending on soil conditions and if any type of drain cleaning chemicals were used.
How old is the HVAC system? They usually need to be replaced every 15-20 years and cost around $10,000 per unit. How old is the water heater? They usually need to be replaced every 1-15 years at a cost of approximately $3000.
When was the last time the roof was replaced? In Texas where hail storms are common and roofs are typically made of composition shingles, hail can damage a roof that was just installed. Most roofs in Texas don’t last more than 10 years due to the extreme temperatures and regular hail storms. A roof replacement starts around $8000 for a small 1000sf house.
How old are the appliances? Like all electronics, appliances have a life span and need to be replaced as they begin to age.
2) Do you have the financial resources to pay for these expenses?
Unexpected repairs can add up quick and are a guarantee, you just don’t know when they will happen.
If you don’t have the financial resources to handle all of the expenses, keeping the house may not be feasible.
3) How much enjoyment will you get from keeping the property?
If you're not planning on living in the house or using it as a rental property, it may not be worth your while to keep it.
There are pros and cons to both selling and an inherited house or keeping it. Ultimately, the decision comes down to what's best for your individual situation. Consider your needs and resources before making a decision.