We’re so sorry for your loss. This can be a very challenging time for lots reasons, and dealing with property ownership is hard at the best of times.
You might be thinking, “I inherited a house in Washington, DC, what to do with this house?” Should I sell it? Should I rent it? How should I sell it?
Tons of options available for you, but…… we can help.
We’re experienced investors in Washington, DC real estate, and we’re looking to buy several houses each month in the Washington, DC area. Each month we get calls from those who have inherited a house and are wanting to sell the house… so the information below on some tips to help you navigate the process.
I Inherited A House in Washington, DC, What To Do Now?
Here’s a few considerations to help you make the right decision:
1) Verify the mortgage is paid.
This may sound crazy, but if the person who left you a property had a mortgage (unless it had no mortgage and was paid off), you have to pay it (assuming you want to keep the property). Many banks will allow you to assume the loan, while others may make you refinance it into a new loan. If you do not qualify for a new loan, renting may not the best option for you.
2) The rental property is only as good as the manager.
If dealing with tenants, brokers, maintenance, rent collection and all the nuances of property management isn’t for you, hire a professional to help you or sell now. Some individuals who inherit homes decide to keep the house and rent it for extra cash. That’s a great strategy. Just be prepared to manage the property and the problems that can go along with tenants and toilets.
3) Owning Property cost Money.
You seldon see a building that’s been perfectly maintained. Most inherited homes need major improvements.
Try hiring a property inspector to give you a detailed rundown on what you’ll need to do within the next three years, along with cost estimates. Surprises are very expensive.
4) Selling a property for top dollar is not cheap.
If you don’t want to deal with updating kitchens, making repairs, improving landscaping and overall cleanup, don’t worry. We buy Washington, DC houses for cash, as-is.
5) If the market continues to grow faster than your other options, don’t sell the investment.
We can assist you to analyze the value of your property today verses the long-term benefits of renting. If you can put to use the equity in your property in a way that outpaces the performance of the real estate market, you should consider it. If you have nothing better to do with the money and the neighborhood is increasing in value, keep it – real estate can be a great investment if you know how to correctly read the market.
6) Uncle Sam wants a piece of the action.
Remembert to discuss your inheritance with tax and legal professionals before you act.. There are major income tax consequences that will could impact the cost of owning your investment.
7) Examine all your options.
In some situations we may be able to help you arrange a lease-option agreement that allows you to rent and sell at the same time. These types of deals can be complicated, but our Washington, DC investment experience can help you win.
8) Compare a few options.
We’ll can help you determine prices for any property near Washington, DC – if you sold it today without doing any repairs, the best price the market will bear, and the projected value of keeping it as a rental (along with the costs).