When you inherit a house, to many it may seem like a windfall. While this may be true, more often it comes with the burden of new responsibilities. For instance, in addition to paying taxes, insurance, and utilities you will also need to maintain your inherited house; clean, renovate maybe even deal with scary electrical and plumbing.
An unexpected property can be a challenge for an individual, but things can get really interesting when a parent leaves a home to more than one child. If you are faced with the challenges of co-inheritance, here are some of the ways you can deal with your new property.
Keep the House
Keeping the house is a great option. However, when you do this, you will need to take into consideration a lot of factors. For example, if the house belongs to you and your siblings, someone may need to buy out the shares of the non-habiting sibling(s). This can often require a mortgage or creative financing and a good lawyer.
Be sure to talk through the process with your co-inheritors, and speak to experts. Unless you talk with a lawyer, property broker and bank, you are likely to miss big pitfalls, and in some cases, big opportunities.
Rent It Out
If you decide unanimously to rent out the inherited house, then you will need to share the income. By renting out the property, you’ll not only earn revenue but also buy time to figure out the best long term solution. Sometimes, however, it can be challenging to figure out the amount to charge as rent. Again, be sure to talk through the process with your co-inheritors, document agreements and decide together!
Not only do you have to share the responsibilities of managing the property but the responsibilities and legal implications of being a landlord. Alternatively, you may hire a person or company to manage your property. However, if you feel that you are incurring more for travel or paying salaries to caretakers, you may want to just consider selling it.
What if the people who inherit the house can’t agree?
If you can’t reach an agreement, you’ll probably have to involve the court. You can file a lawsuit for partition, asking a judge to order the sale of the home so you can terminate your co-ownership. This is a complicated procedure in Massachusetts, however. The judge will typically assign a representative first to get the property ready for sale. You won’t be allowed to do this yourself if you and your siblings are at odds. You’ll have to pay the representative for their services, and you’ll also have to pay a broker and possibly an accountant as well if there’s a dispute about who gets what portion of the proceeds.
Sell Your Inherited Property
Normally, the best thing to do with inherited property is to sell. Selling can free up capital to invest in other things and preserve your family relationships.
No doubt that selling the property without involving the courts is the ideal thing to do. But, how can you achieve this easily? Well, you can simply sell your house to us! Mass Property Solutions is experienced in buying inherited homes, and no matter what condition your property is in, we can relieve you of the burden associated with selling your house by making things fast, offering a cash guarantee and working on your timeline.