Friday, August 10, 2018

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.


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