If You Inherited A Property, What To Do With It?

We are 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. Inheriting a property comes with dealing with lots of emotions of the death of a loved one. Things may can go wrong along the way when you inherit a house. It also means making some hard decisions. Typically you choose to live it, rent it, or sell it. 

Click to find out more, Things That Can Go Wrong When You Inherit a House in Chicago

It can give you headaches from making sure everything is done efficiently because if not, you will face unwanted costs such as property taxes, mortgage fees and insurance fees.

If you are unsure on what to do of your inherited property, 

What To Do If You Inherited a Property

The first step you should take is to get some professional advice. You must understand the status your house is in. Make sure that you verify your ownership. Hire an attorney who is an expert in estate tax law to aid you with the complicated paperwork and to help you transfer to your name the property title. Also, don't forget to get an inspection particularly if the house been has not been updated in years. 

Unless it as paid off, make sure the mortgage is paid. Assuming you want to keep the property, you have to pay the mortgage. Some banks will allow to assume a loan, while others may force you to refinance into new loan. 

Similarly, try not to put off making a decision about what you are going to do with the house. If you are uncertain which decision that suit best on your situation. Here are points to consider if you want to move in, rent it, or sell it.

Moving in:

• You may pay higher property taxes. The house will be reassessed at the current market value.
• The property may need major repairs. It is recommended to get a home inspection so you are aware of any maintenance and repairs that need to be done.
• If siblings inherited a home as joint owners- you need to negotiate them. If others doesn't want to sell, other siblings have no recourse except court. If they want to you to live there yourself, they will need to be compensated. This might be in the form of rental rental payments. 

Renting Out:

• Becoming a landlord is a tough job. You will deal with tenants and maintenance issues. Getting involved in renting property can be somehow stressful.
• Hiring a professional property manager to handle leasing, marketing and managing. It can minimize the hassle and potentially costly mistakes.
• Check any relevant city ordinances or homeowners association rule on renting houses.
• It can be expensive and you may have to pay a higher property tax rate.

Sell

• While it is on the market, you are still responsible for all the taxes, household maintenance and bills. 
• Conflicts may occur between siblings such as disagreements over pricing.
• Inform the executor to petition the court in order to get the "go-ahead" sign and proceed with the sale from there.
• Hire professionals to renovate the house to attract potential buyers. Simple decluttering and cleaning are important to sell a house quickly.

More helpful hints, So You Inherited A House. Here's What To Do Next

How To Sell A Fix And Flip Property in Chicago City

Flipping homes can be a great way to earn an income. So when you begin your journey flipping homes, there are some things you need to know, and other things you will want to avoid. We’ve put together some tips on how to sell a fix and flip house fast in Chicago

Flipping requires adding action plan to your investment property more value so it can give you the biggest return for your cash. In addition to rehabbing any obvious issues like leaky faucets, outdated flooring or broken ceilings, you also want to consider what people are looking for when they look at homes in your area.

Click to find out more, How To Sell a Fix and Flip Properties 

Understand Your Location and Market

They say a home’s value is based on location above all else. 60% of the home’s value comes from where it is located on the map. Home prices may differ drastically as you move from neighborhood to neighborhood.

A property that might be a great value in one part of town, may sell for considerably less just a few miles away. Make sure you have done your homework and have a good understanding of home prices in YOUR neighborhood.

You will also want to have a grasp on the demographics in the area. Who is buying? Families, seniors? What are they looking for, and what can they afford?

Don’t Over-Improve The Home

Remember that less is more. There are no guarantees that you will recover the costs you spend to fix it the property. Replace things that are not working or that appear very old, but leave it at that.

Do not sink money into a home adding extravagant details and upgrades. If bathroom cabinets are old and ugly, replace it with a simple (and cost effective) pedestal sink.

Just remember that no matter how many upgrades you make, a home will not sell for $500k, when the neighboring homes are going for $150k.

Price Your Home Before Anything Else

Before you sign the papers to buy the home, have the number in your head of what you will sell it for. Be careful not to inflate this number. You should be pricing low in order to get a buyer and sell the home fast.

Be realistic and stick to your numbers. Do not think that by making a $40k renovation to the basement, you will be able to add $40k to your asking price.

Review all your numbers before getting started, and keep in mind, repairs typically require more money than what you initially plan for, so give yourself some cushion.

Only Drop Once

When you initially price your home, give yourself enough room to drop the price once. Plan to make a significant drop of $5-$10k if the house isn’t receiving much attention at your original asking price.

You will only want to drop the price once. Dropping the price more often can make the house appear as if something is wrong with it, or that you are desperate to sell.

Before starting any real estate investment project, it is important to educate yourself and work with professionals you can trust.

To learn more about selling selling house in Chicago, Sell Your House Fast In Chicago Illinois