Tuesday, August 17, 2021

What Should You Do Next When You Inherit a House?

An inheritance can be just about anything, and it is always nice when the item holds special meaning or value. When you inherit a house, you will need to decide what to do with it, especially if the gift is unexpected. 

Here are some options to consider if you receive a house as a bequest.

Fix It Up

Many houses that are handed down to relatives or close friends have been in the family for many years. The home may have belonged to a great-grandparent or a famous ancestor. 

Even if the house is commonplace, it may need a little TLC to spruce it up and make it more comfortable and attractive for contemporary living. 

Some people who inherit a house decide to convert it into a guesthouse or a play area for the kids, depending on its size and structure.

Move In

If the home you inherit is more valuable or has greater potential than your present home, you may decide to move in. Of course, you will want to have a professional inspection to ensure everything is up to date and take care of any needed repairs. 

A house with sentimental memories of long-ago holidays or family gatherings can bring everyone together again when you take ownership and get the place in good condition.

Rent It Out

Inheriting a house that you don't need because you already live in one that you love means that you can use the property to generate passive income. 

Make sure it is in good condition and rent it out. The fees collected from renters can help to cover the utilities, insurance, and property taxes that will be due routinely. 

Renters might also be willing to do the yardwork and paint the rooms every few years when needed if you adjust their monthly rent accordingly.

Sell It

Some people inherit a property that they just cannot use. It might not meet their needs based on size or location, or they may not like the way it looks. 

If you decide to sell the house, contact a real estate agent, like those in the Olivia Cooley Group, to discuss your options. Real estate agents can give you advice on how to situate your house in the current market in terms of making cosmetic improvements or needed repairs. 

A real estate agent can also explain the legal implications of selling an inherited property in terms of applicable tax laws.

Put your inherited house to good use in one of these ways to get the most from it. Letting it sit idle for a long period of time could cause it to depreciate and can make it harder to fix up, live in, rent out, or sell.

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