If you’ve inherited a property and you’re thinking about selling it, you might have more options than you think. Read this blog post to find out the 3 financial options you can pursue when selling an inherited property right now in Minneapolis St Paul…
When a loved one passes away and leaves you with a property, it might seem like a meaningful gesture. Still, the truth is, an inherited property isn’t always convenient to have. There are additional bills that are going to be added to your everyday life. Even if you own the property in Minneapolis St Paul free and clear of a mortgage, you still have property taxes, insurance, and all the utilities to keep it going. Then there is the ongoing maintenance on the structure, mowing grass, and getting rid of the Minnesota snow. It can be time-consuming and stressful inserted into an already busy life.
So if you are thinking of selling, you might first be thinking about selling with the help of a local traditional real estate agent. However, you might be surprised to learn that you have options that you may want to consider as well. Did you know you have 3 financial options you can pursue when selling an inherited property in Minneapolis St Paul?
First, Let’s Talk About Selling Through An Agent…
There’s nothing wrong with selling through a real estate agent. Still, you should be aware that an Minneapolis St Paul agent may have you fix up the inherited property first, before putting in on the market. Most agents who work with people who are selling their inherited property know that many of these homes need work to prep them for sale. The Agent will set up a time to come to visit the house and make suggestions of what repairs or updates you should pursue to be done.
If you inherited your property from an older family member, most likely, some things need to be repaired. For example, go around the structure and write down all the screens and windows that need to be repaired. Open and close all doors to make sure they function as they should. Secondly, turn on all the water at once in the home and see if there are any drainage issues in the sewer lines. If there is, now is the time to have a professional out to snake your drains.
Then there are the updates that should be done to help bring the inherited property into the 2020’s so it sells easily. Over the years, we at Minnesota Cash Home Buyers has helped many families down the road of selling a loved ones Minneapolis St Paul house, have found that painting in the best update. Painting an interior fresh up space and makes it more welcoming for the buyers. While painting the exterior tends to boost the curb appeal and gets buyers excited about coming in and seeing what options the house has for them, if the kitchen or bath is not functional, it is a good idea to update them as well. A professional real estate agent will appreciate the financial commitments you have made to help sell the property.
Then there are title company closing fees and the hefty agent commission you’ll have to pay at the closing. And this method can take months, be very expensive, and emotionally draining, so some people don’t like how long it takes.
So, what are the other financial options?
Second, Let’s Look At The Other Options…
Option #1. Refinance
One option, which is a type of selling kind of, is to refinance the property with a bank loan and use that money for other things. You would still own the house; this is a financial option that some people might consider to get some needed cash out of the house, yet keep it in the family.
You can still use the house or rent it out and bring in some income to pay this new refinance loan. You will need to pay back the loan to the bank, but it’s one option to consider.
Option #2. Rent To Own
Another option is to sell the house over the long-term by selling to an excellent hand-chosen tenant. Typically, these are tenants who can’t get a mortgage because of credit or something from their past. But, after a discussion with a tenant. You can approach them about options of selling your inherited property via rent to own to them. Many good people have had a streak of bad luck and can not get a bank mortgage but would want to own a house. So, they’ll pay you to rent, and over time they’ll be able to buy the house. It all depends on who you write up the contract, but often a tenant will make a larger than typical rent payment, and part of the payment goes towards the loan. The second kind of rent to own is more of an option to buy. This option of selling your property is where you and the tenant agree to a price that, in the future, the tenant will pay to purchase the property. They put down a nonrefundable down payment and pay rent. When they decide in the future, they can do their option to buy the home at the discussed price. They may go to a bank, credit union, or lender to get the money.
Option #3. Sell Fast For Cash
Finally, one little-known option that owners of inherited properties might enjoy is the ability to sell the house fast for cash. Instead of selling through an agent (and hoping they can find a buyer, which can take months), you can work with a house-buying company (like what we do here at Minnesota Cash Home Buyers). They’ll often buy your house as-is for cash, usually in as little as a few days. When they buy the properties, they do one of three things with them. First they may fix it up and sell it to another family to enjoy, they may use it as a rental, or option 3 is to sell it to another investor. It’s fast, simple, and doesn’t require any work getting the house ready to sell..
There you have it! 3 financial options you can pursue when selling an inherited property in Minneapolis St Paul!