So you’ve inherited a house and you’re thinking about selling it? You might have more options than you realize. Read this blog post to find out the 5 financial options you can pursue when selling an inherited house in Roanoke…
The truth is, an inherited property isn’t always convenient to own. There are additional bills, expenses, maintenance, upkeep, stress, and to top it off, it can be time-consuming.
So if you are thinking of selling, you might first be thinking about selling with the help of a real estate agent. However, you might be surprised to learn that you have options that you may want to consider as well. In fact, did you know you have at least five financial options you can pursue when selling an inherited house in Roanoke?
First, Let’s Talk About Selling Through An Agent…
There’s nothing wrong with selling through a real estate agent but you should be aware that an agent will more than likely want you to fix up the inherited house first. Then there are closing fees and the hefty agent commission you’ll have to pay afterward; don’t forget to calculate those fees into your cost of selling. And this method can take months and many people don’t want to wait this out.
So, what are your other options?
Option #2: Refinance
This option, which is a type of selling, is to refinance the property with a bank and use the money for other things. Although you’ll still own the house, this is a financial option that some people might consider if they are selling in order to get the money. You can still use the house, or rent it out, but you’ll need to pay back the loan to the bank, but it’s one option to consider. Of course qualifying for a mortgage will depend on things like an appraisal and your personal credit.
Option #3: Rent To Own
Another option is to sell the house over the long-term by selling to a tenant. This is called rent-to-own or a lease option. Typically, these are tenants who can’t get a mortgage but want to own a house – so they’ll make you a down payment, pay you rent and over time they’ll be able to buy the house after their credit is restored and they can secure a mortgage. Make sure you get at least a 5% down payment so the tenants are committed to closing on the house.
Option #4: Seller Finance
With this option you could take a down payment and sell the house. Your role then is to collect payments from the new owners. By doing this you are basically acting as the bank for the new owners. Many sellers love this option because they have cash flow without the headache of being a landlord. Just make sure you get well qualified buyers in the house to hedge against the possibility of foreclosure. Foreclosure can get very expensive and typically the foreclosed party will leave the house in poor condition.
Option #5. Sell Fast For Cash
The final option that owners of inherited properties might enjoy is the ability to sell the house fast for cash. Instead of selling through an agent (and hoping they can find a buyer, which can take months), you can work with a house-buying company (like what we do here at JPHomeBuyers) and they’ll often buy your house as-is for cash, usually in as little as a couple weeks. It’s fast, fair and doesn’t require any work.
There you have it! 5 financial options you can pursue when selling an inherited house in Roanoke!