Sometimes life brings us shared inheritance of a home. While this is a thoughtful gesture, it can also come with a lot of complicated decisions that will have to be agreed upon by both parties. Not only do you have to make an agreement about what to do with the inheritance, you also become responsible for any financial burden that the home may bring with it, such as real estate taxes, insurance, and maintenance.
There are a number of options you can explore with the co-inheritor to decide what should be done with the home. The hard part of this, is coming to a solution that both parties can agree on. During this process many hardships can be encountered. To avoid any disagreements, it is really important that both sides understand what options are available to them.
Rather, you and your sibling decide to keep the home or sell it, it is almost always necessary for you to make some renovations. Start with the simple things, such as repainting, trimming the shrubs and removing clutter. These small things can add up in the eyes of the potential buyer. If large changes are needed such as plumbing or electricity, make sure both parties agree on the cost before choosing to call someone in to make the necessary changes. Keep in mind that even larger changes can bring a lot more value to the home, so it may be worth making them.
If it is decided that the home will be kept and rented out, then both parties will have to agree on the potential income and repair cost. This option will allow an income to be made, while both parties are trying to reach a decision on what to do with the home. However, both sides will have to be open to this option and the amount of rent that will be charged.
This option proves to be a hard one because both parties tend to have different views. Trying to straighten out how to manage repairs and income can bring a lot of disagreements and cause hard feelings.
Most often, co-inheritors of a home will choose to sell it because this is the easiest way to settle. This can prove to be a great option if the home is in a prime location. Plus, each party will be given a lump sum that can be used for other purposes.
Even though, this is the ideal choice in most scenarios, it is not easily achieved. It will take time to market the home and find potential buyers. If neither party is familiar with selling a home, this can prove to be a challenge.
Keep the House
If the home has a lot of sentimental value to it, then one or both inheritors may decide they want to keep the home. If one party wants the home, then they can buy out the other’s portion. This can bring a lot of challenges because both sides have to agree on a price. Plus, if you do not have the cash on hand or cannot get a loan, this decision will have to be reconsidered.
While you have a lot of options when it comes to an inherited home, making a decision on what to do with the home can be very challenging. If both parties have agreed that selling the home is the best option, then I can help you out. I buy homes and have some quick sell options that can help you get through the process with ease. Contact me today for more details.