Dealing with the estate of a parent after they pass is always difficult. If you inherited their home, it may be even more difficult. There are three things you need to consider after inheriting the home: Your financial responsibilities that are tied to the home, the tax liabilities attached to it, and your options when you inherit your parents’ house.
Unfortunately, it is not as simple as just taking possession of the home. If there is still a mortgage attached to it then that becomes your debt. If you have siblings, they may contest your inheritance and fight for their portion of the home. Then there is the actual problem of what you are going to do with the home. Inheriting a home is not like an inheritance or an heirloom. You can’t just store it away someday until you need it. The following is a quick look at your options when you inherit your parent’s house.
Move Into It
If you don’t already own a home, or you owe a mortgage on your current home and your parent’s home is paid off you may consider moving into it. There are dozens of reasons why you might want to live in your parents’ old home. This may seem like one of the easiest options when you inherit your parents’ house.
However, it may not be that simple. There may be financial debt attached to the home or the property taxes might be too high to be affordable. Also, if the house needs a lot of maintenance and updating then you will be responsible for footing the bill. If you have multiple siblings you also may be in for a fight. In many states legally siblings have equal rights to their parents’ home, regardless of what a will says. Thus, you may end up needing to pay your siblings their portion of the home. This could mean a high amount out of pocket that you don’t have access too if you don’t sell the house.
Rent It Out
If you already have a home, then renting out your parents’ house may seem like a logical way to create a steady second income. Some of the problems listed above may still be an issue, but if you make money from renting the home you can pay for things such as attached debt or maintenance. Siblings can agree to split profits from the rental property erasing that issue.
However, if you rent the home out you will become a landlord. This means you have to deal with maintenance, tenants, screening, rental law, and possibly zoning issues. Renting can turn into a huge hassle if you aren’t experienced and/or protected throughout the process. Make sure to read up on your state laws before you decide to rent the property.
Sell It
Given the hassles that surround renting or moving into your parents’ home, selling the property may seem like the best of all three options when you inherit your parent’s house. Of course, selling is fraught with its own issues. You will need to find a lawyer, make repairs/update the home, and stage it. This is in addition to completely emptying the house of your parents’ belongings.
Sell It for Cash
There is one way you can simplify the entire process, by selling the house for cash. When you work with a cash buyer, you will be able to sell the house for cash on the spot. You don’t need to worry about fixing the home up, and you can wash your hands of the property quickly. If you need to sell to avoid mortgage payments or to settle a debt between your siblings and yourself, a cash buyer is ideal. WeBuyHouse can offer you a cash offer with just a few quick details. Give us a call today to find out how much you could sell your parent’s house for right now.
Dyan Zammataro | Sep 2, 2020
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