To begin, I would like to personally extend condolences from us here at Mike Buys Houses – we understand that this is a difficult time and is actually one of the factors that led to the beginning of our journey. Bill’s mom inherited a house unexpectedly and we learned about the process that real estate professionals use to help homeowners. And we learned for years while preparing and saving and now we help homeowners as real estate professionals.
You may possibly be thinking, “I inherited a house in Vineland, what should I do with this house?” Should I rent it? Should I sell it? Where do I begin? How do I sell it?
Basically, you have a few options and we can help.
We’re local guys who are real estate professionals in Vineland real estate, and we’re looking to buy several houses each month in the Vineland New Jersey area. After learning about the process to sell an inherited house in Vineland, we realized how confusing it can be – so here is a little guide to help you sell your inherited house.
I Inherited A House in Vineland, What To Do Next?
Consider these things:
1) Figure out how much is owed on the house.
While this sounds like it is an obvious thing to consider, sometimes due to the unexpected turn of events you may have inherited a house suddenly. Well if there is a mortgage on the property, then you need to start making that payment because you inherited the house and the mortgage. Unfortunately, it is not common for banks to allow for any grace period so figure out if there is a mortgage on the property quickly and then begin communicating with the banks in order to ensure that the mortgage remains current.
Based on the bank, you may either have to assume or refinance the loan so that will mean that you’ll need to be able to afford this house. If you don’t think you’ll be able to work with the banks then renting your inherited house may not be the best option for you
2) Prepare a management plan
When deciding what to do with your inherited house in Vineland, if you are planning to rent the house out then you will need to start formulating a plan to manage the property. A rental property is a business and if it is not treated as such then it will cost a lotttt of money over the long run.
So what things do you need to consider if you will be managing a rental? First, you need to get tenants, which means getting the house rent ready, taking photos, setting up marketing for tenants, fielding calls and sending out applications, reviewing applications, interviewing tenants, runnings credit checks and background checks, showing the property, signing and getting the lease together, inspecting the home with the tenant and setting up the payment system.
Congrats! You are a landlord and now it is time to start considering how you will deal with maintenance.
It may be a great strategy to rent your property, but this is just a quick list of things you may have to consider.
You just need to be prepared to manage the property and the hassles that can go along with tenants and toilets.
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3) Property ownership costs money.
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements. Deferred maintenance on a property (work that needs to be done) accumulates quickly and often leaves people who inherited a property with a lot of work to be done.
We bought a house that had been in such bad shape that if you looked at it on google maps you couldn’t even see the house behind all of the overgrown bushes and the lawn. If this is something that you just inherited then I think we may be able to help you find a solution.
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.
If you are setting up to be a landlord via this newly inherited property in Vineland then you will definitely want to have a plan for the expected renovation costs as the general wear and tear is inflicted on the house by tenants.
4) There are costs to selling your house with a realtor
If you don’t want to deal with making repairs, updating kitchens, improving landscaping, and overall cleanup, don’t worry. Check out this video where we talk about all of the costs that are associated when selling your house to a realtor. Luckily, We buy Vineland houses for cash, as-is.
5) HOLD for appreciation.
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.
The old adage in real estate is LOCATION LOCATION LOCATION – and it is still true so if you have inherited a property that is in a great appreciating market then it definitely may make sense for you to hold on to the property for a while before deciding whether or not to sell it. Be careful though because you don’t want to mistime the market and hold on through all the appreciation and then be forced to sell when the market eventually corrects. Timing the market is always difficult.
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) Consider the inheritance tax in Vineland and don’t forget to check for any inheritance taxes in New Jersey
Don’t forget to discuss your inheritance with tax and legal professionals before you take action.
It’s too much to get into here, but basically you will want to check on the status of inheritance taxes in Vineland before deciding what to do. You may decide to keep the house only to find out there are some costs associated with the house that you didn’t know about.
There are major property and income tax consequences that will dramatically impact the cost of owning your investment.
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.
This is definitely a little bit more of an advanced strategy, but it is an option and we’d love to talk you thru it if it is something that you want to try.
These kinds of deals can be complicated, but our Southampton investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Southampton – 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). We can help you analyze the numbers and determine what to do with your inherited house in Vineland.