Inheriting a house can be exciting yet stressful at the same time. You may find yourself struggling between keeping it or selling it. Avoid going back and forth. Approach it from a logical perspective to help you make the right decision. In this situation, it is best to step back and allow yourself space to reflect on what is important to you.
Here are some questions to help you reflect and figure out what is most important to you:
Would I like to own this house?
Think about the location of this house. Think about the price point. This house is only yours because it was passed down to you. You have to evaluate the situation from the perspective of searching for a house without inheriting it. Would this be something you would have purchased regardless of the situation? Is this an ideal house for you?
Do I want to be in business with anyone else?
Even though this property was personally inherited, you have to look at it from a professional perspective. Inheriting a house with siblings or other family members means you are in business with them. Everyone benefits from this inheritance and people will treat it like a business, quickly forgetting you are family. Ask yourself if you want to be in that situation because it could turn unpleasant.
Can I afford this house?
The inherited house will have financial obligations and expenses. You need to have sufficient cash flow to handle the new situation. Perhaps you have other liquid assets. No matter what you will need the income to cover the additional ongoing expenses of maintaining this house. One must evaluate whether or not this is realistic and safe. The last thing anyone wants is additional financial stress with no way out. Think long term in whether or not you can afford this new responsibility.
How will this impact me?
Along with having a financial impact, inheriting a house is going to impact your lifestyle. You have to evaluate this from a holistic perspective. You may be able to financially afford this house. Think about whether you can afford it in terms of the other areas of your life. It may or may not impact your immediate household, physical health, mental health, or other areas. An evaluation needs to be done to determine if this is the case. For example, if this house is located in a bad neighborhood, are you going to be able to sleep at night or are you going to be worried that someone will vandalize it? These are realistic concerns.
What are your plans?
It is important to think through your plans for this property. There should be short term as well as long term plans for the house. You may decide to keep it for a few years and then sell it. Perhaps, it is something that will work out for the next ten years. All of this requires appropriate analyzation. Professionals should be consulted.
Is it worth renting?
Renting sounds good to most people because this means income and potential profit. However, there is more involved other than income when it comes to rental property. You have to consider the wear and tear of the home. Eventually you may want to sell it. After renting the house, repairs and upgrades will be needed because most tenants realistically do not take care of the home as if it was their own. You have to evaluate whether the additional wear and tear from tenants is worth renting the property.
What does the market look like?
It is wise to examine the real estate market. Ask a professional about existing market conditions and forecasts for the near future. Question the stability of the real estate market and compare it to your goals. Look into whether the prices in the location of this house are expected to rise considerably or not. Again, it is recommended you discuss these aspects with professionals who can guide you to the best of their ability.
Rather than dealing with the financial headaches of an inherited house, call us at 240-801-6055to receive a cash offer and additional help http://inheritedpropertycash.nichebuildersite.com.