Did you recently inherit a house after the passing of a loved one? Do you know you can’t keep it but you’re not really sure what the next move is? Is the following question running through your mind over and over “How do I sell a property I just inherited?” “ Who do I sell it to?” or “Where do I get a hold of somebody that is interested in buying this old house?”
The following is some information that will help you plan out your next steps carefully and thoughtfully. This information will also help you understand the situation you’re in a little better so that you can focus on processing the loss of your loved one and not the added stress of another property.
The first thing you want to do when you are selling a property that you just inherited, especially if it’s a house in dire need of repairs or updating, is price the property to sell fast. Understand that the longer you keep the house the more expensive it gets. Rather than just factoring in an ending sales price, you have to factor in a mortgage payment, taxes and upkeep of the property. If you’re going to keep the house in living shape, you also have to factor in utilities. A lot of times people get greedy and want to sell an old beat-up house for top dollar thinking it’s how you make the most money but don’t realize that every month that passes holding cost nickel-and-dimed your profit away. If you jump to the front of the line by pricing your property to self fast you avoid the headache of having the house sit on the market for 6 to 12 months and making payments for all that time.
Secondly, You have to avoid pricing the property emotionally.
We understand that in these moments emotions are running High. You just recently lost a loved one. Your whole family is probably arguing over who did what for who. You’re trying to figure out how to lighten the load that’s been left for you to carry. And you honestly just miss the person who passed away.
As much as we sympathize with you and offer you our condolences, we want to make sure you walk into this entire situation with a clear head. The unfortunate truth about these situations is that you have an emotional attachment to the property that you’re now trying to sell.
It’s where you grew up.
It’s where you hung out.
It’s where you came to visit Grandma on the weekends.
Because of the memories the property is worth a fortune, but the sad truth is the market doesn’t understand or take these things into consideration when valuing your house. A lot of times pricing a property emotionally causes the seller to put way too much value on the building because of the memories attached to it. Be sure that when you are getting ready to price the property they are doing so with a clear and level head and not running into it strictly with your heart.
Lastly – Understand the Impact of Repairs:
The last thing you need to understand is that repairs on a house do not factor in at a one-to-one ratio. What I mean is this, let’s say your house is worth $150,000 in perfect condition. Now if you need to update your kitchen update your two bathrooms and replace the roof it’s $20,000 worth of repairs. Common sense tells us that we should be able to list the house at $130,000 and it’s a fair deal, but the market doesn’t work that way.
When you’re factoring in repairs, at minimum you have to do a 2 to 1 ratio of impact versus actual cost. So to clarify let’s use the same numbers, your house is worth $150,000 it needs $20,000 in repairs your realistic number (and it’s still a stretch) is at least a $40,000 to $50,000 discount.
Because the seller who’s willing to walk into a house that needs $20,000 worth of work is very rare. Not very many people want to walk into a house that has a leaky roof, an old kitchen, dirty carpet and lime green paint. Also understand that a house that needs repairs is not the kind of property that flies off the market. Typically if your house is beat up and needs a lot of work you’re realistically looking at 9 to 12 months on the market.
If you need to sell a property fast we encourage you to give us a call.
We Buy Houses As-Is.
No repairs Necessary.
No Clean Up Necessary.
And we pay CASH!
We can set up a no obligation completely free property assessment where will give you a transparent offer, give you advice on what we would do, let you know where we guesstimate repairs to be at, and answer any questions you may have. our number is 593-3300 give us a call and we can set up an appointment to make a cash offer on your property today!