If you inherit a property, you may not know what to do with it. These are the first four steps to follow if you inherit real estate:
1. Meet with a probate attorney. An attorney can help you find out who has assumed the various rights and responsibilities associated with the property so you can get a full picture of what you’ve inherited.
2. Have the property inspected. We recommend treating the inherited property as you would a real estate purchase. Before you buy a property, you have to have it inspected, so do the same when you inherit a property. Knowing what shape it’s in will help you with later decisions.
3. Find out whether there are any obligations attached. Ideally, the inherited property will be paid off, but that’s not always the case. Contact your trusted local real estate professional to see whether there are any ongoing or imminent obligations such as payment of taxes, landlord-related obligations, or mortgages. Some loans are required to be paid immediately if the borrower passes away; if the beneficiary wants to keep the property, they’ll need to consider whether they can pay it off or have the credit and financial ability to refinance.
4. Decide whether to sell or keep the property. Once you have all the other information we’ve covered, you’ll be ready to decide what to do with the property. It’s important to determine the property’s current market value for both renting and selling. Consider both options because inheriting a property can give you a massive boost in building long-term wealth. It may be tempting to sell it at first, but consider the long-term cash flow potential of renting it out. Contact your trusted real estate agent to talk through your options.
If you have further questions about inheriting property or real estate in general, contact us via phone or email or leave a comment. We would love to be your chosen local Realtors. Remember: Your goals are our priority.