Inheriting a property can come with a mix of emotions, from elation to sadness, as it can be a house or property that has a lot of sentimental value to you and your family.
But, on the other hand, when it comes to selling the property, it comes with a whole different set of challenges and unexpected financial complications. It will warrant certain decisions to be made that can be very daunting and overwhelming to you, especially when you are uninformed about the process and the reality of it all.
Here are 4 of the most prevalent challenges you can expect to face when selling your inherited property:
Long Wait Periods
Because of the laws, which can vary depending on the state the property is in, and the red tape involved, getting everything in order to sell can be a very time-consuming and gruelling process.
It can take months for the title alone to change hands, and then you possibly still sit with a property that is in dire need of updating and maintenance, which will take even more time!
This can all add up to expenses you did not expect. As the ideal, in this case, would be to sell the house for maximum profit, it can become something difficult to accomplish due to this time factor.
This is one of the most inconvenient issues surrounding this situation. A property standing for any period of time will warrant carrying costs. These costs generally include property taxes, utility service expenses, insurance costs and other expenditures you might not expect.
Not to mention the costs involved in having your attorney work on the probate…
So it is easy to surmise from this, that not selling the property immediately and having to carry it for some time can become expensive, causing one to end up losing a lot of money in the process.
Not Enough Capital For Upgrades
Is there extensive work to be done on the property to make it more appealing to buyers?
For whatever reason, do you simply not have the funds (or able to get the necessary capital) for the type of upgrades and maintenance work needed?
This leaves you with much less attractive selling options than you might have had otherwise. It is a well-known fact that most buyers are looking for turn-key properties. Unless you are willing to give them a significant discount, of course.
This is an option, but in the end, it will not give you the bottom line you want, or what you would have been able to get.
Little Or No Knowledge Of The Local Market
To have the correct local knowledge of the market is of utmost importance. You might be living in a completely different state than the one your inherited property is located in.
The specific area will not only have a tremendous effect on the selling price, but it will also even influence the kind of improvements that will need to be made to the house. That is if you want it to sell for top dollar.
Do the research and your due diligence! Get in touch with local real estate agents and contractors that will have first-hand experience and knowledge of the associated market.
However, be sure to speak to at least three different experts in the area before deciding on any one of them!
So, you might be wondering by now if there is any good news to be had…
Well, there are always ways for these challenges discussed to be minimized as much as possible, same as there are always options available to maximize the bottom line you can get from your inherited property.
Have no fear. We are available to help and stand by you through the entire process!
Contact us today!