When you inherit a property, it often comes at an emotional time. Our deepest condolences if this is the case for you. It’s common to feel overwhelmed when dealing with both loss and the decisions that come with inheriting a home. If you’re unsure what to do next, take comfort in knowing that we’re here to support you through the process.
Many people ask, “I’ve inherited a home—what should I do now?” The two most common options are renting or selling. If you find yourself weighing these choices, know that you’re not alone, and we’re here to provide the guidance you need.
As experienced realtors on the Eastern Shore, we regularly help individuals navigate the complexities of inherited property. Below, we’ve outlined several important factors to consider when deciding how to manage your inherited home.
Key Considerations When You Inherit a House:
- Address Any Mortgage Obligations If there is an outstanding mortgage on the home, you’ll need to manage that first. Some lenders may allow you to assume the loan, while others might require refinancing. It’s important to explore your options early to avoid potential complications. If managing another mortgage feels overwhelming, don’t hesitate to reach out—we can work with you to find a solution.
- Property Management Responsibilities Owning a rental property comes with many tasks, from tenant management to ongoing maintenance. If you don’t have the time or interest to manage these tasks yourself, hiring a property manager might be a good solution. Keep in mind that property managers typically charge 10-20% of the rental income, which can affect your financial decision-making. Alternatively, selling the property may relieve you of these responsibilities.
- Maintenance and Repair Costs Owning a home is a financial commitment. Maintenance costs, repairs, and updates can add up over time. It’s wise to have a professional inspect the property to identify any needed repairs or renovations, as deferred maintenance can lead to costly surprises later.
- Preparing a Home for Sale If you decide to sell, you may want to consider making minor repairs or updates to maximize the property’s value. However, if the idea of handling renovations or preparation seems overwhelming, selling the property in its current condition might be a simpler option. We can help you evaluate which approach is best for your situation.
- Long-Term Investment Potential In some cases, holding onto the property may be a smart investment if the market is expected to continue growing. We can help you assess whether retaining the home as a long-term investment might be beneficial.
- Tax Considerations Inheriting a home comes with tax obligations. From property taxes to potential capital gains, understanding the tax implications is critical. It’s important to consult with a tax professional to navigate these aspects effectively.
- Exploring All Options Sometimes, creative solutions like lease-option agreements may provide the best of both worlds—allowing you to rent the property with the option to sell later. We’re here to help you consider all possible options to make the best decision for your circumstances.
- Comparing Different Scenarios We’re ready to walk you through all the scenarios: selling the home as-is, maximizing market value with renovations, or retaining the home as a rental property. With the right information, you can make a confident decision that suits your goals.
Whether you’re looking to sell, rent, or hold onto the property, Shore Living Real Estate is here to assist. Let’s start a conversation about the next steps for your inherited home on the Eastern Shore.
👩 Julie Stevenson REALTOR®️ | Broker
📍 Proudly serving Talbot, Caroline, Queen Anne’s & Dorchester Counties
🌊 Shore Living Real Estate
📲 (410) 251-5291
📧 [email protected]
💻 www.shorelivingrealestate.com
Licensed in Maryland and Delaware