Who does not like to inherit a house in Colorado? If a piece of real estate falls into your lap, consider it a blessing, especially in today’s market.
However, you might not want to keep it for too long. An inherited house can also be a burden in disguise, so selling it (rather than living in it or renting it out) might be the best option at your disposal.
Below are the signs you should look for buyers that pay quick cash for homes in Fort Collins or wherever the house you inherit is located.
It Comes With a Mortgage
An existing mortgage balance is the most obvious red flag for listing an inherited property. Although the law states that you can assume the loan after its ownership is transferred to you, dealing with another bill can be an inconvenience.
The lienholder, the mortgage lender, usually wants to get paid fast. If you do not sell the property ASAP, you might be forced to take over the payment out of your pocket without getting any benefit from it. Sure, you can find a tenant and use the rent to pay down the loan, but being a landlord is not for everyone.
To avoid the hassles of mortgage assumption, finding a cash buyer is the most viable route to take. If your inherited property has appreciated so much over the years, the proceeds of the sale might be more than enough to cover the remaining mortgage balance.
It Is Far From Where You Life
Generally, there is no point keeping an inherited house located far away from your primary place of residence. This notion is particularly true if it is not fully paid yet. If you not near retirement, not selling the property has even less value to you.
It Is in Bad Condition
A fixer-upper is not a good candidate for a property rental, for it has to be habitable first before you could begin accommodating a tenant. Bringing it up to code and restoring its beauty can be a costly proposition. More often than not, you have to take out a loan to finance its home improvements, which can take years to recoup.
Instead of contending with the stresses of renovating your inherited property, sell it to an investor cash. This way, you can spare yourself from the rigors of construction and home improvement financing.
It Is Too Big
If your inherited property is structurally sound and ready for occupancy, it is still a liability even when it did not come with a mortgage. House maintenance is an underrated recurring expense, which makes many people regret homeownership in the first place. Unless you can command a rent that exceeds the amount of upkeep the property requires regularly, it is not worth keeping.
It Is Bound to Decrease in Value
As the recipient of the inherited property, you are not required to pay any tax on the capital gains stemming from the house appreciation before you received the house. In other words, you can pocket 100% of the profit. If you sell later rather than sooner, the financial rewards you can reap might diminish should local housing market turn sour.
Inheriting a valuable asset like a piece of real estate can come with drawbacks, so evaluate all aspects of the situation before you make a decision. While the sale of the property cash can minimize your profit, you stand to lose more if you explore other avenues for too long.