First, we’re so sorry for your loss. This can be a very challenging time for many reasons, and dealing with property ownership is tough at the best of times.
You’re thinking, “I inherited a house, what to do with this house?” Should I rent it? Should I sell it? How should I sell it?
Tons of options open for you, but…
… we can help.
We’re seasoned investors in Richmond real estate, and we’re looking to buy several houses each month in the Richmond Virginia area. Every month we get calls from those who have inherited a house and are looking to sell the house… so the info below are some tips to help you navigate the process.
I Inherited A House, What To Do Next?
Here’s a few important considerations to help you make the right decision:
1) Make sure the mortgage is paid.
This may sound obvious, but if the person who left you a property also had a mortgage (unless it had no mortgage and was paid off, which is great!), you have to pay it (assuming you want to keep the property). Some banks will allow you to assume the loan, while others may force you to refinance into a new loan. If you don’t qualify for a new loan, renting may not be an option for you.
2) The investment is only as good as the manager.
If navigating brokers, handling maintenance, managing tenants, collecting rent and all the complexities of property ownership is consuming your valuable time, let a professional take over or consider selling now for immediate cash. Some people who inherit properties choose to keep the home as a rental investment for supplemental income. While this can be a sound financial strategy, it’s important to be prepared for the responsibilities that come with property management—from addressing tenant concerns to dealing with unexpected repairs.
3) Property ownership costs money.
Few properties maintain perfect condition over time. When inheriting a house, you’ll typically discover it requires significant renovations or updates.
We recommend engaging a qualified property inspector who can provide a comprehensive assessment of necessary repairs over the next five years, complete with cost estimates. In real estate, unexpected issues can dramatically impact your budget.
4) Selling a property for top dollar costs money.
If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy Richmond houses for cash, as-is.
5) If the market will continue to grow faster than your other options, hang on to the investment.
We provide thorough, personalized evaluations comparing your property’s current market worth against its potential as a sustainable passive income source. If channeling your equity into more profitable investment avenues makes financial sense for your unique circumstances, we’ll walk you through these options with full transparency and individualized guidance. Alternatively, if better investment opportunities aren’t clear and your location shows robust growth potential, keeping your property might be your wisest move – real estate remains an effective wealth-building tool when you can properly understand market dynamics and trends.
6) Uncle Sam wants a piece of the action.
When inheriting property, we strongly recommend consulting with qualified tax and legal professionals before finalizing any decisions. Inherited real estate carries unique financial and legal implications that significantly impact both immediate choices and long-term outcomes. Property and income tax considerations, in particular, can substantially affect your investment’s maintenance costs. For example, inherited properties often face reassessment at current market values, potentially increasing your annual tax obligations. If you’re generating rental income from the property, proper reporting and taxation are essential and will directly affect your actual returns. Should you choose to sell, specific capital gains tax provisions—such as the step-up in basis—may apply, potentially reducing your tax liability while still requiring careful planning.
Beyond tax considerations, legal complexities including probate proceedings, title transfers, or disagreements among multiple beneficiaries may create challenges requiring professional guidance. A qualified attorney ensures proper ownership documentation and clearly defines your rights and responsibilities. Likewise, a tax professional can provide strategies to minimize tax burdens, maximize available deductions, and align your property decisions with your broader financial goals.
By seeking expert advice before committing to any path, you’ll avoid potentially expensive mistakes, preserve your inheritance value, and make informed decisions supporting your long-term financial security. Thoughtful planning today helps protect the benefits of your inherited property for the future.
7) Consider all your options.
For unique circumstances, we can craft a customized lease-option agreement that enables you to both rent and sell simultaneously – giving you the advantages of both scenarios. While these arrangements require expertise to navigate properly, our specialized RICHMOND investment knowledge ensures you’ll come out ahead.
8) Compare a few scenarios.
We’ll help you determine prices for any property near RICHMOND – if you sold it today without doing any work, the highest price the market will bear, and the projected value of keeping it as a rental (along with the costs).