So, you’ve inherited a house, congratulations! It can be exciting, but it can also become a lot of extra work and expense. That said, there are things you should know about inheriting a property in Roseburg.
Sure, in some circumstances, inheriting a house could be considered a windfall. However, there are times when the reality is that you may just have inherited a sinking ship that you’ll be responsible for, whether you can afford it or not.
So while the best intentions may have motivated the inheritance of a property in Roseburg, it isn’t always financially beneficial. Often, properties left in wills are older and not in prime condition as costly wear, tear, and deferred maintenance takes a toll over time. Some of the costlier problems include structural features such as foundations and roofs and wear-out appliances and systems in the home, like the HVAC and electrical.
In addition to the stress of handling the problems your benefactor may have left behind for you to clean up, including going through their belongings and cleaning out the property (been there), you may be dealing with emotional strains as well.
In my experience, there are often multiple heirs, and emotions may rule their actions at this time, which only adds to the stress when you’re dealing with such important matters. Read on as we explore five things you should know about inheriting a property in Roseburg.
Debt
Regrettably, many people inherit a great deal of debt along with inheriting a property in Roseburg, usually in the form of:
- Unpaid taxes.
- Liens.
- Multiple mortgages on the property.
- Equity loans and lines of credit.
- Federal tax liens (will receive payment first if selling the property.)
Therefore, assessing where you stand with any debtors, such as contracted workers holding mechanics liens against the property for improvements, judgment liens, and the mortgage, is the first step in dealing with your inheritance.
Taxes
While inheriting a property in Roseburg doesn’t necessarily trigger more tax liability, you should know that your decisions about what you do with the property very well may. Should you make improvements, you can write these expenses off.
There are also property taxes to consider; if they aren’t a part of an existing mortgage payment, be sure to familiarize yourself with any deadlines. Inherited property is subject to a step-up-basis adjustment in the value of the property upon which your capital gains taxes on any growth moving forward are based.
Consult your CPA to learn more about taxes and inherited property.
Maintenance Costs
As houses age, maintenance costs are typically higher for older homes, as they are more susceptible to failure. Allowing routine maintenance to go unperformed can quickly escalate into significant issues. In addition, some older homes have features that have become obsolete or hazardous, such as asbestos, and may require specialized knowledge for proper care. Call in an expert for unfamiliar equipment, which is vital to know about inheriting a property in Roseburg.
Repairs
Calls to repair specialists for more significant issues also increase as properties age, and this is another thing you should know about inheriting a property in Roseburg. Before deciding to take the house on as your own, you should have a professional inspection and estimates from at least three professionals, allowing you to see just what (if anything) you’re up against if you hold onto the property.
Often, when opening up a section of the house for one repair, other issues come to light, much like a domino effect, so keep extra funds on hand to cover unexpected expenses during the repair process. Remember, too, to request an estimate of the time you’ll be holding onto the property until it’s ready to be lived in or sold.
Listing Costs
Even going it alone, a listing on the MLS isn’t an inexpensive venture between prepping, repairs, professional photographers, marketing, and showings, not to mention the inspections, real estate commissions, and closing costs. Real estate agents can’t provide a guaranteed closing date, however, so another thing you should know about inheriting a property in Roseburg, you may end up with a wait for the phone to ring.
Sometimes listing is the right path, but there are times when an easy, fast cash sale is best. It all depends on your specific needs. Selling to a professional investor could help you avoid the expenses of fix-ups and real estate fees.
This is done by accepting a cash offer for your house in as-is condition. In fact, I have purchased homes in every condition you could imagine. The last home I purchased was owned by a multi-generational hoarder!
We, at Sky Real Estate Investments will walk heirs through the process step by step, making this time a little easier on you. In addition, professional investors offer guaranteed closing dates. At Sky Real Estate Investments, we lay it all out on the table and compare what you’d profit from listing vs. selling directly, so you can make the best decision with your inheritance for your situation.
We’re not hasty and we’re always happy to stop and take the time to listen, answering any questions. We (my wife and I) can help you overcome any hurdles you may feel stand in the way. At least you’ll have all the information to help you make an informed decision.
Working with a buyer who has experience in real estate investing, as we do at Sky Real Estate Investments can help you learn more about your options and how it’s best to sell the property. It’s comforting to know experienced professionals will work with you as a guide like the professional investors at Sky Real Estate Investments will. Contact Sky Real Estate Investments at 541-643-1131.