Last updated on March 11th, 2019
If you have inherited a home in SoCal and are considering selling it, there are a few different options you can take. In this post we’re going to discuss 3 different options you can use to sell an inherited home and which one may be best for your situation.
The truth is, although it’s a meaningful gesture for a loved one to leave you a property, it isn’t exactly a convenient process. An added mortgage, maintenance and upkeep can all create a mountain of stress for you and even more so if you live out of state.
In many cases, unless you’re also thinking about renting the home, selling is a good option. If the home is in relatively good condition you may be thinking of using a real estate agent. If the home is not in good condition this may not be a good option.
First, Let’s Go Over Selling With An Agent…
Selling through an agent is the most common and traditional way to sell a home. When the home is turn-key this is the ideal way to net the most amount of money. If the home requires more love than you can give it, then using an agent may be a problem.
Agents may require that you fix up your inherited home. On top of those costs, you will also have to pay out closing costs and huge agent commissions. If you factor in the costs for repairs, closing costs, hidden fees and agent commissions you may be losing more than you’re comfortable with.
Things are especially troublesome if you live out of state or need to sell the home quickly. When listing an agent the average wait time can be anywhere from 4-6 months for a home in good condition. If your home isn’t you could be facing an even longer wait.
So, what other options do you have?
Option 1: Refinance the Inheritance
If you need quick cash, one possible option is to refinance the home and then use that money for what you need. While you’ll still own the house, this is an option to consider if you need money.
You also have the option of renting the home out and you’ll need to make sure the loan is paid back to the bank.
Option 2: Rent To Own (RTO)
Option #2 known as 'Rent to Own', deals with selling the house to a tenant that can’t get a mortgage but wants to own a home and pays over the long-term. This often involves the tenants paying an amount above their lease that goes toward the purchase of the home. This can also give the tenant time to clean up their credit to purchase the property with a mortgage.
Option 3: Sell Direct for Cash
The last and (possibly best) option is to sell the inherited home fast for cash to a real estate investment company. These real estate professionals bypass the need for an agent and the use of bank loans. This also eliminates the uncertainty of a buyer falling out of escrow since the cash is already on hand.
You can work with a house buying company like ours and have the entire process completed in as little as 7 days. It’s extremely fast, simple and requires the minimal amount of effort from you. You can learn more about how this whole process works by clicking here.
Hopefully these alternative financial options give you an idea of what you can pursue when selling an inherited property in SoCal!