Did you know Baby Boomers stand to inherit upwards of $27 trillion over the next four decades, according to The Center of Wealth and Philanthropy at Boston College, and a decent portion of that is the value of their loved ones homes.
Once the home becomes yours, figuring out what to do with it can present many issues, both financially and emotionally, and if their are other siblings or loved ones involved it can be even trickier.
"There are 3 distinct options you have when you inherit a home property,” says Michael Moody, partner at Big 3 Homes. “Move in, rent it out or sell the home.”
Each of these options can have its benefits and issues.
Renting can bring the benefit of a new income source for you as well as still give you ownership and access to a home that likely had some sentimental value to you. However being a landlord/property manager can be tricky at times. Dealing with repairs and issues at all hours, finding tenants, getting tenants to pay on time, etc. You could hire a property manager to take care of all the hassle, but expect to pay 10-30% for the convenience.
Maybe the home offers you an upgrade over your current living situation - better/bigger/nicer home, better part of town, better schools, whatever it might be. You get to live in a home that had sentimental value to you - maybe you grew up there. But also be prepared for the added expenses. Moving into a better neighborhood or bigger home can mean higher mortgage payments (if the home was not paid off by the deceased) and property tax payments.
Selling the home can be a good solution to many in this situation. It offers (usually) a good chunk of money to the heir(s) without the added burden of owning and maintaining the property. The downside would be getting the home "list ready". 71% of heirs who inherit a home, say the home is in need of major updates and repairs. Usually the deceased lived in the home for a long period of time without making updates or fixing that leaky faucet, or replacing the flooring. Most agents will ask you to come out of pocket up front to make the repairs, put in new carpets and paint the house. Did you know homes that lack the major updates or renovations made in the last 7 years will sit on the market for on average 9 months before closing!? That's 6 months longer than those with updates.
This is where a cash buyer - Big 3 Homes - can help you out. We can buy the home as-is (no need for repairs, paint or even cleaning), pay you cash and close in as little as 1 week, meaning you wont need to worry about making a mortgage payment.
Contact us today to find out how much you can get for your inherited home.