First and foremost, we extend our deepest condolences for your loss. This is undoubtedly a difficult time emotionally, and having to make decisions about inherited property only adds to that burden.
You’re probably wondering, “I inherited a house, what should I do with it?” Should you rent it out? Sell it quickly? And if selling is the right choice, what’s the best approach?
While you have many options to consider…
… our family-owned business is here to help.
As experienced investors in Columbia real estate with over 10 years serving the Midlands, we regularly work with homeowners who’ve inherited properties and need straightforward solutions. Every month, we assist families throughout Columbia South Carolina who are facing these exact circumstances, and we’ve compiled some helpful information to guide you through this process.
I Inherited A House, What To Do Next?
Here are important factors to consider when deciding what to do with your inherited property:
1) Make sure the mortgage is paid.
While this may seem obvious, it’s crucial to determine if there’s an outstanding mortgage on the property (unless it was fully paid off, which is ideal). If a mortgage exists, you’ll need to continue payments if you want to keep the house. Some lenders allow mortgage assumption, while others require refinancing. If you don’t qualify for new financing, renting the property might not be feasible.
2) The investment is only as good as the manager.
If handling property management tasks like maintenance issues, tenant screening, rent collection, and other landlord responsibilities doesn’t align with your skills or interests, consider either hiring professional management or selling the property outright. While keeping the house as a rental can provide steady income, you should be prepared for the realities of property ownership and management challenges.
3) Property ownership costs money.
It’s uncommon to inherit a property that doesn’t need some work. Most inherited houses require significant updates or repairs to maintain their value and functionality.
We recommend hiring a qualified home inspector to provide a comprehensive assessment of necessary repairs and improvements for the next five years, along with estimated costs. Being unprepared for major maintenance issues can lead to expensive surprises down the road.
4) Selling a property for top dollar costs money.
If you’d prefer not to invest in repairs, kitchen renovations, landscaping improvements, or general property updates, there are still options. As a family-owned business with BBB accreditation, we buy Columbia houses for cash in as-is condition with no hidden fees or obligations.
5) If the market will continue to grow faster than your other options, hang on to the investment.
Our team of licensed real estate professionals can help analyze your property’s current value versus potential long-term rental benefits. If you have better investment opportunities that would outperform real estate appreciation, selling might make sense. However, if the neighborhood is appreciating and you don’t have better uses for the equity, holding the property could be advantageous – especially in the growing South Carolina Midlands market.
6) Uncle Sam wants a piece of the action.
Before making any decisions, consult with tax and legal professionals about your inheritance. There are significant property and income tax implications that will substantially impact the financial aspects of property ownership, whether you decide to keep, rent, or sell.
7) Consider all your options.
In some cases, we can structure lease-option agreements that allow you to both rent and sell simultaneously – giving you the advantages of both approaches. While these arrangements can be complex, our decade of Columbia investment experience enables us to create personalized solutions tailored to your unique circumstances.
8) Compare a few scenarios.
Our team can provide you with multiple pricing scenarios for your Columbia property – including the as-is cash value today, the potential market value after improvements, and projected rental income values (along with associated costs and responsibilities).