If you’ve just inherited a house in Arizona that means you’ve just lost someone dear to you. We’re so sorry for your loss, and we know this can be a very challenging time for many reasons. Dealing with a property in Arizona and deciding whether to rent or sell it can make it more challenging for anyone who’s just inherited a house.
You’re probably thinking, “I inherited a house, what to do with this house?” and “Should I rent or sell it? ” and “How should I go about the process if I were to rent or sell it?” or “Should I just keep it instead?”
There are tons of options open for you, and we can help.
We’re seasoned investors in Casa Grande, Arizona City, Coolidge and Maricopa real estate, and we’re looking to buy several houses each month in Pinal County, Arizona. Every month we get calls from people who have inherited a house and are looking to sell the house or don’t know whether to rent or sell it… so the info below are some tips to help you navigate the process.
I Inherited A House, What To Do Next?
Here are a few important considerations to help you make the right decision, whether you should rent or sell or just keep the house you inherited:
1) Make sure the mortgage is paid.
This may sound obvious, but if the person who left you a property also had a mortgage, you have to pay it if you want to keep the property. If you inherited a house with no mortgage and was already paid off, that’s great! A good thing to know is that some banks will allow you to assume the loan, while others may force you to refinance into a new loan. If you don’t qualify for a new loan, you don’t need to decide whether to rent or sell it because renting may not be an option for you.
2) The investment is only as good as the manager.
When it comes to deciding whether to rent or sell the house, you have to be aware of the work that comes into play with each of your options. Some people who inherit homes decide to keep the house and rent it for extra income which is a great strategy. If you decide to rent the house, you need to be ready to manage the property and the effort that comes with doing so such as dealing with tenants and toilets. If dealing with brokers, maintenance, tenants, rent collection and all the nuances of property management isn’t the best use of your time, talk to a professional in Arizona to help you or cash out now.
3) Property ownership costs money.
Most inherited houses need major improvements. It’s quite rare to see ones that are perfectly maintained. You have to consider hiring a professional property inspector to give you a detailed rundown on what you’ll need to do within the next five years, along with estimated costs. Surprises are very, very expensive. Since it’s not just maintenance costs you have to worry about, you have to also deal with taxes, loans associated with the house, and/or HOA fees, you have to put all of that into consideration when you decide whether to rent or sell, or even to keep the house.
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. Of the options to rent or sell the house, the best option for you will be to sell it. However, selling the traditional way (with a real estate agent) will cost you money.
We buy houses in Casa Grande, Arizona City, Maricopa, Eloy, Coolidge and the rest of Pinal County, as well as other cities in Arizona, for cash, as-is (any condition). We can help you get out of the ownership and selling situation fast.
5) If the market will continue to grow faster than your other options, hang on to the investment.
Since you’ve inherited a house, which may not be within your location, we can help you analyze the value of your property today versus the long-term benefits of renting. If you can use the equity in your property in another way that outpaces the performance of the real estate market, you should do that. If you don’t have anything better to do with the money and the neighborhood is rising in value, hang on – real estate can be a great investment if you know how to correctly read the market. You can talk to us to find out if it’s the best time to rent or sell the house based on the current market growth. We’re professionals we make sure analyze Arizona real estate markets on a regular basis.
6) Uncle Sam wants a piece of the action.
Don’t forget to discuss your inheritance with tax and legal professionals before you take action. There are major property and income tax consequences that will dramatically impact the cost of owning your investment. You somehow need to have an idea about Inheritance Laws in Arizona since you inherited a house to protect your potential investment.
7) Consider all your options.
In certain situations we may be able to help you structure a lease-option agreement that allows you to rent and sell at the same time – capturing the best of both worlds. These kinds of deals can be complicated, but our Casa Grande, Coolidge, Arizona City and Maricopa investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Casa Grande, Coolidge, Arizona City, Maricopa and Florence – if you sold it today without doing any work, the highest price the market will bear, and the projected value of keeping it as a rental (along with the costs).