Inheriting a house brings more than just financial gain. It also increases your legal and financial responsibilities. The process may require negotiation with siblings or other heirs and could be emotionally draining as well.
When inheriting a home in Maple Shade, NJ, the first thing to do is to make a short-term plan to maintain the house while the estate settles. You’ll want to consider your long-term goals, plan for upkeep, and discuss your plans with any siblings or other heirs who have an interest in the property. Here are some of the issues that may arise when you inherit a house.
The Financial and Legal Responsibilities When Inheriting a Home
In the near term, you’ll need to budget for ongoing maintenance costs. Here are a few of the major considerations.
Insurance
The homeowner’s insurance policy should be rewritten when the owner dies. Some companies will let you keep your current policy, as long as your payments are up to date. In the event that the Maple Shade house goes into probate, you won’t be able to obtain insurance in your name.
Mortgage
Any existing mortgage must be paid or you risk foreclosure. You can check the home’s title to find out who owns the mortgage if you’re not sure whether one exists. Alternatively, you could request the deceased’s credit report.
Other Outstanding Debt
You may also uncover outstanding debts and liens on the property via a title check—for example, unpaid contractor bills or second mortgages. When you become the owner of the house, you will likely own these debts as well.
What Can You Do with an Inherited House?
Choosing what to do with an inherited house is a deeply personal decision. Three main options are available, each with its own pros and cons.
Move in
If you can afford it, make your inherited home your primary residence. Think about mortgage costs—as well as extra costs such as property taxes, needed repairs, insurance, and upkeep—before making this decision. You may need to buy siblings or other heirs out of their shares of the home if you inherited it with them, which would mean a larger mortgage moving forward.
Rent out
You may consider renting out your inherited home if you’re not able to live in it full time. You could find long-term tenants or turn the property into a vacation rental. Although you may need to spend some money on the conversion, it could end up being a good passive income source.
However, being a landlord is a lot of work, and it can be even more challenging if you plan to co-own the property with your siblings or other heirs. Renting the home also changes your tax implications.
Sell
It isn’t always practical to own a house, either because of the mortgage and maintenance, or because you don’t want the ongoing complication of renting it out or co-owning it. Selling gives you a fresh start.
If you decide to sell the property, create a plan to cover expenses while the house is being prepared for sale. You may also want to budget money to fix up the property to get as much as you can from it.
However, if you do not have the budget to fix the home or are in a hurry to sell, you may consider selling to a cash home buyer. These kinds of buyers will buy the house as is and give you the cash on your chosen schedule.
Sell Your Inherited House in Maple Shade to Us
Aim High Properties, LLC aims to provide you with an offer that will satisfy you and leave you with the peace of mind you need so you won’t have to worry about an unsold home adding to your stress. As a trusted cash home buyer in Maple Shade, NJ, we do everything we can to make sure the deal benefits both parties.
Our ability to buy your house on your schedule and quickly is just the icing on the cake. Each situation is unique, which is why we meet with you initially to ensure that we fully understand your situation and proceed with the transaction according to your needs.
Contact us immediately if you are considering getting an all-cash offer on your house. Our offer is free and ready whenever you need it. When you’re ready, call us at (856) 861-6000.