Have you inherited a home or is there a chance you will inherit one in the future? Are you prepared to make the decisions will need to be made?
Hopefully the person you inherited the home from left a will explaining what their wishes were. Not everyone takes this step though. A recent example of dying without a will happened over the summer when Aretha Franklin died.
If there is no will or trust set up for the estate, an executor is usually appointed to make most of these decisions along with members of the family.
These decisions include-
- Will you keep the property, rent it out, or sell it?
- If you decide to keep the property, can you care for it properly? If it becomes an investment property, can you manage the estate if it is rented out?
- What is the fair market value of the home? This important information will be needed if one or more of the heirs wish to sell the home and the other heirs want to keep it. The person who wants to keep the home will have to purchase the interest of the other party.
- Is the home in good condition, or does it need to be renovated or repaired before selling? Often if the original homeowner was elderly or ill they may have not been able to maintain the home.
- What happens to the furniture inside the home? Will it be divided up among the heirs or should it be sold?
- What if there is a mortgage on the home? Can you maintain the mortgage or do you need to sell the home to pay the mortgage?
As you can see there are a lot of decisions that need to be made when you inherit a home. Hopefully there is a will in place to help guide your decisions.
Kelly Harden, Realtor®
Mihara & Associates, Inc.