I inherited a property! Now what do you do? Here are 4 strategies to consider what to do with your newly inherited house.
You may or may not be well versed in the real estate world. You may have bought a primary residence once or twice in your life, or may know nothing about real estate at all. Regardless of your situation, you just inherited a house, and now you need to figure out what to do with it. You have a few options: 1) List the house with a real estate agent, 2) Fix up the house and sell it with a real estate agent 3) Rent it out 4) Sell the house for cash, as-is, to a local we buy houses in Philadelphia company, like Brotherly Love Real Estate. Let’s take a deeper look in each option.
- Listing the house with an agent: This can be costly, and time consuming. Worse yet, it’s not even guaranteed that they can bring you a buyer and you’ll actually sell this inherited house. What commission did they beat you over the head for? 6% of the sales price? Most agents will list the house online with minimal efforts and just field offers from other agents and buyers. If you are selling a $200,000 property, if it actually even sells, you’ll have to pay $12,000 in commission, PLUS other potential broker fees, like a $500 conveyancing fee (which is simply a fee you’ll be charged for them to handle your paperwork). In addition to this, you’ll have to pay closing costs, which typically run about 2.5% of the sales price in Philadelphia. (2.139 transfer tax, and another estimated .3% to title fees, etc). This is another $5,000 in closing costs. So now you’re looking at $17,500 in closing costs. Ouch!
2. Fix up the house and sell it with a real estate agent: In addition to selling the house with an agent for a ton of fees and closing costs, you now have to spend time and money fixing the property up to sell. Do you have experience managing contractors or working on houses yourself? Rehab projects take experience, knowledge, time, and cash. There are many inherited risks with fixing the house up. What’s your timeline look like? If you are one of those people who constantly thinks I need to sell my house fast, be ready to evaluate the time of the sales process. What if you go over budget and end up losing money once you sell? What if the contractor runs away with your deposit? Consider other costs, like taxes, utilities etc while you are rehabbing the property. Rehabbing a house is not a hobby and should be left to the professionals.
3. Rent it out: This might sound like a good idea on paper. But do you really want to get that phone call at 2am that the toilet is overflowing and ruining the drywall? Do you want to be spending your weekends repairing the property. Do you know how to screen tenants and file for eviction when they don’t pay you rent? Dealing with the Philadelphia eviction process can cost a ton of money for property owners. Leave land-lording to the pros.
4. Sell the house for cash, as-is, to a local investor: This option has a multitude of plus sides over the previous 3 options. A local investor, like Brotherly Love Real Estate, will buy your inherited house for cash, ‘as-is’, meaning no repairs needed, and with a quick and flexible closing date, sometimes as fast as 15 days. In addition to this, you will NOT have to pay any commissions, fees, or closing costs, which is a huge savings for you! Lastly, it is guaranteed that you will be closing on the cash offer rather than waiting in limbo for a buyer to offer on your property when you list with an agent. That offer or buyer may never come!
Consider your time and sanity when you inherit a property. Receiving cash for your house from a local investor like Brotherly Love can be much more beneficial than losing money after fixing it up, or being a frustrated and tired landlord.
Reach out to Brotherly Love today to go over the details of your property and to receive your quick and fair cash offer! 215-769-9875