​So great-aunt Gertrude passed away, and you've received a letter form her attorney saying congratulations, you're inheriting a house. While this windfall might convince you that you were Aunty Gert's favorite, you'll probably rethink that after you've gone through the headaches and hassles of inheriting real estate. 
Maybe Gerty thought you were a dot.com zillionaire and wouldn't mind paying the estate taxes and the balance due on her reverse mortgage, but the reality is that most people don't consider the negative ramifications of a gift of real property and the burdens that they're placing on the giftee. As the heir, you are responsible for the finances associated with the property beyond the taxes and mortgage--the real estate taxes, homeowners insurance and association fees, and the general upkeep--utilities and maintenance. 
If you get lucky and find out the house is in a popular area and is in good repair, you should consider converting it to a rental property. You can manage the rental yourself if you've got the time and are handy with minor repairs, or you can hire a property management firm to oversee the entire operation for a percentage of the rent.
You could always move into the house and take over the mortgage payments, but that doesn't work if you've already got a house you love and a mortgage of your own. Disloyal as it may seem, selling the house is usually the practical path for a surprised heir, especially if you also inherit a house payment and an inheritance tax. 
If you need advice on how to manage the sale of inherited real estate, contact us and we can help you decide what's right for you. 

​Many people think that inheriting a home is something that is akin to winning the lottery-that is, until they learn what headaches are associated with it. If you’ve recently inherited property, here are some things you must add to your to-do list to ensure the process goes smoothly.
Review Property Records
The first thing you should do is determine whether or not a mortgage or reverse mortgage exists on the home. Even if the home had been paid for for quite some time, your loved one may have needed some additional cash and taken out a reverse mortgage or home equity line of credit. That person may have been embarrassed to tell anyone about financial struggles he or she was having, and elected to keep it a secret.
Surprise mortgages aren’t all you need to worry about. You should also check the courthouse for liens against the property. It’s also a good idea to ensure the property taxes are up to date. Many relatives are caught off guard to find the property they have inherited does not have a free and clear title. If this is the case, it’s better to discover this before the estate is settled.
Inspection
Older adults often put off home repairs because they can no longer do them themselves, and feel uncomfortable asking others to fix things for them. As such, you may be surprised to discover that there are a lot of little things wrong with the home that must be addressed before someone could live in it.
Another thing seniors tend to avoid is making upgrades. If your relative lived in the home for some time, chances are the plumbing, wiring, and HVAC system may be inadequate. Having an inspection performed will let you know if these systems need updating.
Inheriting a house may seem like a dream come true; however, it can easily turn into a nightmare if there are underlying issues that must be taken care of first. In many cases, selling the property quickly could be in your best interest, in which case we invite you to contact us today to find out more.