Monday, February 19, 2018

Inheriting a Home - We Can Help

Inheriting a house is a double edge sword.  It can occur as a result of losing a loved one, and it could at the same time, feel like you just won the lottery.  But you need to be prepared to make a number of tough financial and emotional decisions.

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Here are a few important things you should know about inheriting a house:

1. Your Options


You basically have three options: Sell it, Move into it or Rent it.

  • Selling it can be challenging.  We have helped many families in this siutation, and our experience states that, generally, it can be difficult to find the right buyer on the market when selling a home that has not been updated or maintained adequately.  Fortunately, we purchase homes like this, so this is something SMK Realty Solutions can provide assistance with (if you're in the DMV area).
  • Moving into it can also be difficult as various family members may have different financial requirements/goals and may not be willing to wait to sell.  The market could also turn later down the road, and you may not get as much money as you once could have.
  • Renting should be considered with caution because this could turn into costly and time-consuming endeavor.  Typically, a home needs to be in good working condition for a good renter to rent it.  This may require you to update various aspects and/or fix costly components of the home to get adequate rental value.  Also, keep in mind, that "you get what you pay for" -- if you want to rent it at a cheaper price, you'll get renters that may not pay on time or not take care of the property while they're renting. 

2. Tax Implications


The tax laws have recently changed, and different jurisdictions have different laws.   So it is critical that you consult a certified accountant or attorney to determine the precise tax implications for your situation.

But you may be required to pay taxes on the inherited home and may have to sell the property to raise the cash to pay the taxes.

Also, if you consider to turn it into a rental (non-primary residence), there are tax implications for this as well.

3. The Emotional Side


If you inherited the home due to the loss of a loved one, you and your families will have to face the emotional side of this situation.  Generally, you'll need to deal with going through an entire life's worth of belongings and this could uncover various emotions.   Many families find they cannot handle the stress that comes with cleaning out inherited property, so they do nothing for a year, which can be costly.

Not selling a house and not living in it makes for increased maintenance and insurance costs, and that financial stress adds to the emotional stresses involved.

How SMK Realty Solutions Can Help


We are not realtors, rather we purchase homes directly (on flexible timelines).  This has allowed us to help many families with inheriting a home.   We purchase homes AS-IS -- which means we do not need the home to be repaired, upgraded, etc.  The home doesn't even need to be cleaned or cleared out.  In fact, we always offer assistance on clearing out homes when we purchase them -- we work with various local charities to donate anything we can.

Also, it can be difficult to determine the value of the home as it is not as simple as relying on online websites to provide an accurate evaluation -- we can provide this analysis free with no obligations.

Feel free to contact us today via phone (301-329-6511) or via email (info@smkrealtysolutions.com).

www.smkrealtysolutions.com



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