First, we’re deeply sorry for your loss. Dealing with the passing of a loved one is always challenging, and managing inherited property only adds to the stress.
If you’re wondering, “I inherited a house in Galveston, Texas, what should I do now?” you’re not alone. Many people face this decision and grapple with questions like:
- Should I rent out the house?
- Should I sell it?
- How should I go about selling it?
While the choices may seem overwhelming, you’re not alone in this. We’re here to help.
As experienced real estate investors in Galveston, Texas, we specialize in purchasing properties, including inherited homes. Each month, we assist many individuals who find themselves with an inherited house and are looking to sell it. Below, we’ve compiled some valuable tips to help you navigate through this process.
I Inherited A House In Galveston, Texas, 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 might seem straightforward, but if you’ve inherited a house with an outstanding mortgage, you’re responsible for continuing the payments if you decide to keep the property. In the best-case scenario, the property might be fully paid off, which simplifies things significantly. However, when a mortgage is still in place, you need to address it. Some lenders may let you assume the existing loan, maintaining the same terms and interest rate. Others might require you to refinance into a new mortgage, which can be a hurdle if you don’t meet the qualification criteria. Without qualifying for a new loan, renting out the property to cover the mortgage might not be an option, making selling a more viable choice.
2) The investment is only as good as the manager.
If managing brokers, handling maintenance, dealing with tenants, and collecting rent sounds overwhelming or isn’t the best use of your time, consider hiring a professional property manager or opting to sell the property for cash. Many people who inherit homes choose to rent them out for extra income, which can be a lucrative strategy. However, it’s essential to be prepared for the responsibilities and potential headaches that come with property management, including tenant issues and ongoing maintenance tasks. If you prefer a simpler solution, selling your inherited house for cash might be the best option to avoid these hassles.
3) Property ownership costs money.
It’s uncommon to find an inherited house that’s been perfectly maintained. Most inherited properties require significant repairs or upgrades. To avoid unexpected expenses, consider hiring a professional property inspector. They can provide a comprehensive evaluation, detailing necessary improvements and estimated costs over the next five years. Planning ahead can save you from costly surprises and ensure you’re fully prepared for the financial responsibilities of property ownership.
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 Galveston, Texas 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 assist you in evaluating the current market value of your property against the potential long-term benefits of renting it out. If leveraging the equity in your home could yield better returns through alternative investments, it might be a wise move to explore those options. However, if you don’t have more other plans for the funds and your neighborhood is appreciating in value, holding onto the property could be a smart investment. Real estate can offer substantial returns if you understand how to interpret market trends effectively.
6) Uncle Sam wants a piece of the action.
Before making any decisions about your inherited property, it’s crucial to consult with tax and legal professionals. Inheritance can bring significant property and income tax implications that can greatly affect the overall cost of owning your investment. Understanding these tax consequences will help you avoid unexpected financial burdens and ensure you make informed choices. Whether you’re planning to keep, sell, or rent the property, professional guidance is essential for navigating the complexities of inheritance taxes and legal requirements.
7) Consider all your options.
In some cases, we can assist you in setting up a lease-option agreement that enables you to rent your property while also positioning it for sale, offering you the benefits of both rental income and a potential future sale. Although these arrangements can be complex, our extensive investment experience in Galveston can guide you through the process smoothly, ensuring you maximize your property’s potential.
8) Compare a few scenarios.
We’ll assist you in assessing property prices near Galveston, Texas. This includes determining the current market value if you were to sell the property today without making any improvements, as well as estimating the highest possible selling price. Additionally, we can evaluate the projected rental income and associated costs if you choose to keep the property as a rental investment. Understanding these figures will help you make informed decisions about your property.