How to Sell an Inherited House in Philadelphia
For whichever reason you inherit a house, you need to decide what you’re going to do with the property. There are several options you can take. The most obvious choice is to sell the property immediately via a real estate agent. However, this isn’t your only option.
Regardless of whether the inheritance was expected or unexpected, and how much real estate knowledge you have, you can still move forward in other ways. The most popular choices are to flip the property, rent it out, or sell it to a local investor who buys properties for cash.
Keep reading to learn more about how to sell an inherited house in Philadelphia and what your options are.
List the Property With a Real Estate Agent
When you inherit a property, the most obvious next step is to sell the property with a real estate agent. This is a popular choice for people who have inherited a property unexpectedly or want a quick way of dealing with inheritance affairs. However, even though it’s an obvious option, selling with a real estate agent can be a costly and time-consuming process.
Firstly, you need to wait for the property to be listed and sold, which can take between 55-70 days, according to Zillow. Secondly, you’ll need to pay all the associated fees that come with selling via a real estate agent. This includes commission fees (which could be as much as 6%), broker fees, conveyancing charges (around $500), and closing costs (around 2.5% of the sale price in Philadelphia). For a $200,000 property, this could mean paying as much as $17,500 in fees.
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Renovate the Property & Sell It With a Real Estate Agent
Another popular option after inheriting a house is to flip the property. This is only a suitable option if the property has the potential for added value and if it’s relatively run down. Otherwise, you’ll have spent money on home improvements that don’t add value. It’s best to speak to a real estate agent in Philadelphia or get a cash offer quote first before deciding to renovate.
It’s also important to learn how to flip a property and what’s involved before committing. Rehab projects take experience, knowledge, time, and cash. It isn’t generally a hobby project and you should only do it if you have some professional expertise. Before flipping a property, consider the following points:
- Do you have experience managing contractors or working on houses yourself?
- What does your timeline look like? Do you need to sell a house fast or do you have time to spend renovating a property?
- What are your contingency plans to prevent going over budget?
Remember to consider utility costs, taxes, and other charges when evaluating how much you need to spend and how much you can make flipping a house.
Rent the Property to Tenants
While tricky to organize, another option you have after inheriting a property is to become a landlord and rent the property out. This can be a lucrative way of making additional income. However, it’s important to consider what’s involved and what the ROI (return on investment) will be. A Philadelphia real estate agent can help evaluate how much you can make from renting and whether it’s worthwhile to progress.
Remember, becoming a landlord or landlady isn’t for everyone. There are many responsibilities involved and it’s important to consider them carefully before deciding to rent a property out. For example, as a rental property owner, you’ll need to:
- Obtain a Commercial Activity License
- Handle routine maintenance
- Deal with tenant inquiries
- Screen tenants
- Manage deposits
- Undergo the eviction process, as needed (the Philadelphia eviction process can be costly for property owners)
- Find new tenants
- Keep abreast of new and current Philadelphia renting regulations
Sell the Inherited Property For Cash to a Local Investor
Finally, another way how to sell an inherited house is to sell it for cash to a local investor (like Brotherly Love Real Estate). This offers one of the best ways to sell a house fast, with no prior maintenance needed, for a reasonable price. Local investors in Philadelphia will buy your inherited house for cash with a quick and flexible closing date. With these investors, you can sell the property as quickly as 15 days.
Because the property is purchased “as is”, there’s also no need to complete any repairs, maintenance, or staging of the property (like you would before selling). Additionally, when selling an inherited house to a cash investor, you won’t need to pay any of the usual commissions, conveyancing charges, or closing costs. This often makes it a cheaper option compared with selling via a real estate agent. It’s also a guaranteed sale, unlike when selling a property residentially, which has the potential to fall through at any time.
Need to Sell an Inherited Property Quickly?
These are the most common ways how to sell an inherited property in Philadelphia. Renting the property or flipping it can be worthwhile, but only if you’re prepared to invest the time and cash needed to make it work long-term. Selling a house via a real estate agent is also a good way to get rid of the property, but it isn’t as fast as selling to an investor. There are also additional fees involved.
If you need to sell an inherited property in Philadelphia, we can help. Reach out to Brotherly Love today to discuss your property and receive your quick and fair cash offer. Call us today at 215-769-9875 to speak to our friendly team!