Am I better off renting out my inherited house or selling it for cash?
- It will save you time and energy.
Taking care of this requires a large amount of both time and energy. It is an exponential effort. It’s a full-time job. We all wish for a magical genie lamp that could make this difficult time go away.
- It will save you a lot of money.
I remember growing up when our next-door neighbors renovated their kitchen. It was not cheap. Different things popped up, such as last-minute changes.
Something also went wrong with the piping. That’s just one part of a house. If you have inherited a house and money to invest, you may want to consider flipping it. However, it is an expensive endeavor.
- Less stress in your life.
Deciding to keep an inherited home can be overwhelming. People often lack awareness of the tasks and the effort needed to maintain them. Prioritizing is key to managing this. This is what stresses people out. So if you decide to go this route, make sure you have a plan and to breathe when it gets stressful.
- Get cash now.
Selling your house for cash may be a safer option than keeping your inherited home. After investing time, energy, and money in upkeep and renovations, there is no guarantee of selling at your desired price.
- You will feel better.
Studies have shown that when a person has less on their mind, their quality of sleep and overall health is much better. Let’s face it every day there is something new that we have to deal with, whether it’s paying rent on time, the electricity bill, and you name it. Our everyday responsibilities can be rough at times.Inheriting a house can be a blessing especially if you have a significant amount of money in the bank to deal with it. On the flip side, if you do not have funds in the bank to take on such a task then it could unfortunately bring emotional and mental distress into your life. What is a person to do? Take a loan to upkeep a home that you don’t even live in? That’s absurd, who would do that? Sadly, we are not all financially equal. Some people have a lot of money, but no inherited house. Others have an inherited house but not much money. Both are blessed in different ways. Everyone’s circumstance is different and all we can do is make the best of what tools we have, in every situation we find ourselves in. Another key factor is research. I can’t stress it enough.
Do your research.Inheriting a home with multiple heirs can be complex. Disagreements may arise when some heirs want to sell the home while others want to live in it. Typically, the heir who wants to keep the home will buy out the others. Sensitivity, patience, and understanding are crucial in resolving such situations. Sentimental value often complicates decisions regarding inherited homes. Living in a house where a loved one passed away can be emotionally challenging, prompting some to sell and move on. Talking to friends or therapists helps gain clarity and confidence in making choices. When overwhelmed, it’s tempting to give up and focus on negative thoughts. However, recognizing our free will and choosing to focus on positive aspects empowers us to overcome challenges. This approach applies to all life situations, including inheriting property.
Here are 5 techniques to help you ease your mind before making an important decision about selling your home.
- Get outside and move your body. This is crucial because sometimes we can get so stuck in our heads that we desperately need fresh air to get our body moving. Breathe in the air around you, do some yoga, and walk barefoot on the grass. Step away from all the stress and big life decisions you are facing.
- Write it all out. Get yourself a whiteboard or take it back to school and grab yourself a pen and a notebook because sometimes to make it clear we need to make it tangible. Make a pros and cons list, make a vision board, and just start journaling. This is super therapeutic and will help you prioritize and organize everything that’s going on in your head.
- Talk it out. We spoke about it earlier. Talk it out, it will help you in making a clear, healthy, and logical decision. Be careful who you discuss personal matters with. Make sure the person understands you and your situation and has your best interest at heart. Preferably a mentor.
- It’s okay to cry. This is a hard one for people to rationalize. How will crying help me make an important decision? A person may tell you that it is not a mature thing to do, that it is unbecoming of you to cry.
Statements such as these are forms of insecurity and usually stem from a lack of self-confidence. A good cry can help us when we feel blocked, confused, and lost because it releases stress and strangely enough it helps us feel renewed.
- Pray Now. Please just hear me out before you tell me what your religious preferences are. You don’t need to believe in God to pray but you need to believe in something.
Whether it is God, the universe, or whatever it may be, praying allows us to ask for help in the privacy of our homes. Speaking it out allows us to feel that all of this pressure is not on us alone, and that is a very good feeling to have regardless of what you believe in.
We’ve spent time speaking about some of the benefits of selling your inherited home for cash, so now let’s focus on some of the upsides of renting it out.In our generation today, it is very popular and desirable to want passive income. It’s super appealing, to know that you could be grocery shopping and have a stream of income in place regardless of what you do. Inheriting a home gives you that passive income opportunity that you may or may not have been looking for. It’s important to keep in mind that even though you could be receiving passive income by renting out your inherited home, you are also obligated to do repairs before your tenants move in and also if something is not working properly while your tenants are living there. Maybe there’s a plumbing problem who knows and it was not based on anything your tenants specifically did. You are responsible to fix it. Being a landlord can be a lot of work, and at times could be very costly and time-consuming. If the house needs a lot of work, it could also invite constant complaints from your tenants. Another plus of renting out your inherited home is maybe it’s not the right time in the market to sell (depending on the location, condition, and demand for your property). Another popular trend is to rent your home out for about 5-10 years and then sell (if the market value has increased significantly). A key factor to keep in mind though, is if the neighborhood in which your inherited home is located is profitable (or has potential for growth). You will want to keep track of the value of the homes in your neighborhood are increasing every few years (by checking comparable sales or getting an appraisal). You’ll also have to consider the safety of the neighborhood because that is very important to people (and may affect your rental income). If a person doesn’t feel comfortable and safe in the neighborhood in which the home is located then there is no chance that they would live there (or they may ask for lower rent). You should clarify which country’s tax system you are referring to and provide sources for your information. This brings us to another key point.
Who would be a good fit to live in your inherited home?You’ll have to ask yourself important questions such as “What are deal breakers for me?” or “Am I interested in renting my home to a young couple, a large family, or college students” “Will I allow pets?” Questions such as these are what you should be asking yourself because at the end of the day, this is your property and you need to be selective on who you decide to rent out to (and screen them carefully). Allowing the wrong tenants to rent from you could potentially bring down the value of your house.
How so?Well for one if they are extremely messy this could bring down the value of your house because it means they are not maintaining the standard of living in your home (and may cause damage or wear and tear). Another crucial point to keep in mind is their age and social status (and their income level and credit score). If they are college students, maybe they will be hosting big parties, most likely your neighbors would not be so fond of the idea as well (and may complain or report you). It’s important to have good relationships with your neighbors because essentially you belong to the same community as them so try to keep the peace. Maybe young couples would be a good fit for you but if they have young kids and they start drawing on the walls, will that be a problem for you? You have to consider every possible scenario (and include them in your lease agreement), because essentially your inherited home is an asset), it’s valuable and that is why you have the option of selling your home for cash or keeping it as an investment property. You don’t want to put yourself in a situation where you decrease the value of your property. You should never feel rushed to rent out your place but at the same time feeling rushed is very common because, at the end of the day, you are still paying all the bills on your inherited home and will continue paying until you find a tenant (or sell or transfer the property). So it is so easy to get into a mental trap of feeling like you need to settle on a certain tenant that you feel would not be a good match but at the same time, you don’t want to continue paying the bills on this home hence why you want to find a tenant. Like I said previously, being a landlord is not easy so be fully aware of what you are getting yourself into and what responsibilities and risks you are taking on. By now you should know that you need to have clarity on what is important to you before renting out your place to anyone (or making any other decision about your inherited property), if possible try to have clarity on what you want before deciding to rent it out in the first place. By now you should be feeling more comfortable and equipped with some differences between renting out your inherited home and selling it for cash. As we discussed, there are pros and cons of both options and it depends on each individual’s situation and goals. There is no black-and-white answer to this question. Hopefully, you feel that you now have tools to help guide you through this process. I would like to leave you with this, I have come to learn that in life there is no such thing as a bad decision, only lessons learned. Therefore, whatever route you decide to go down will be the exact path you’re supposed to be on. Many times in life it is easy to convince ourselves that “I am in control of the outcome” Many of us believe this to our core but I do not find this to be entirely true. Yes, we are in control of the amount of effort we put in, we work hard and we do the very best we can and that is all we can do but we are not in control of what happens after that. Remember to be kind to yourself and know that both options are available, it’s just figuring out which is the right one for you (and being flexible if things change). If you’d like to learn more about the cash value of your property or you’re interested in a zero obligation and 100% free cash offer for your inherited home just fill out the form on our contact page and we’ll get in touch shortly.
Selling your inherited house for cash can save you time, energy, and money. It eliminates the need for repairs, ongoing expenses, and the uncertainties of selling at a desired price.
Renovating and maintaining an inherited house can be expensive. By selling it for cash, you avoid the costs associated with repairs, utilities, insurance, property taxes, and other ongoing expenses.
Taking care of an inherited home can be overwhelming, especially if you’re unfamiliar with the tasks involved. Selling it for cash transfers the responsibility to the buyer, relieving you of the burden and reducing stress.
Selling the house for cash provides a guaranteed outcome and immediate cash, whereas keeping the inherited home involves ongoing expenses, uncertainties of selling later, and the emotional strain of living in a place with memories of a loved one.
Studies have shown that reducing mental and emotional clutter can positively impact sleep quality and overall health. Selling the inherited house can alleviate stress and provide a fresh start.
It’s crucial to do thorough research on the options available to you, such as selling for cash or renting out the property. Discussing the situation with trusted individuals, creating lists, and seeking professional advice can help clarify your thoughts and guide your decision-making.
Renting out the inherited house can provide a source of passive income, especially if the property is located in a profitable neighborhood. It also allows for potential future appreciation if you choose to sell after a few years. However, being a landlord comes with responsibilities, costs, and the need to find suitable tenants.
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