Firstly, if you came to inherit a home in Rhode Island and it was because of the death of a family member, we send our greatest condolences and are so sorry for your loss. This can be a very challenging time for many reasons, and dealing with property ownership can be tough even under the best of circumstances. Although a testament to the time passed, you may feel as though the property has become a burden and are unsure of what to do with it. Should it stay in the family and be used as a rental? How much will it sell for in todays market? These are all questions myself and my partners are here to help with while dealing with your inherited Rhode Island home.
You’ve probably been thinking, “I inherited a house in Rhode Island, what can I or should I do with this house?” Should I rent it? Should I sell it? How should I sell it? How much is it worth?
Several options are available to you, and we at Home Tree LLC are here to help!
We are seasoned Realtors and investors in the Rhode Island real estate market, and we’re looking to buy several houses each month in the Rhode Island area. Every month we get calls from owners who have inherited a house and are looking to sell. We can work with you and a probate lawyer to ensure you get the best value and easiest experience with selling or renting your inherited Rhode Island property.
I Inherited A House in Rhode Island, What To Do Next?
Here are a few important considerations to help you make the right decision before moving forward:
1) Make sure the mortgage is current/is being paid.
This may sound obvious, however, if the person who left you a property to inherit also had a mortgage on that property, then you will be responsible for payments – assuming you want to keep the property. In some circumstances inherited properties are owned free and clear, in which case there would be no mortgage payments to assume which is an advantageous scenario. Some banks and lenders will allow you to assume the current loan, however, in some cases they will force you to refinance into a new loan. If you don’t own the property free and clear, and cannot qualify for a new loan, renting may not be an option for you. In this case you may be best to either list the home on the MLS through a Realtor or field cash offers from local investors in your area. Luckily at Home Tree, we are Local Realtors and investors with extensive knowledge on Rhode Island real estate market conditions and can help you weigh the pros and cons of either approach.
2) The investment is only as good as the manager.
Some people who inherit homes in Rhode Island decide to keep the house and rent it for extra income. That’s a great strategy for sure, however, you must be prepared to manage the property yourself and abide by all local regulations governing RI Tenant-Landlord Law. This can come with hassles for some people so they choose to avoid the added stress and sell the property rather than manage the rental. If dealing with brokers, maintenance, tenants, rent collection and all the nuances of property management isn’t the best use of your time, hire a professional to help you or cash out now. Matt at Home Tree LLC will be happy to give you a no obligation opinion of value and make you a fair cash offer for your inherited property in Rhode Island. Fill out the form below to get started.
3) Property ownership costs money.
It’s rare to see an inherited home in Rhode Island that has been perfectly maintained. Most inherited houses need major improvements to be made – even before they can be rented out. Updating the property and getting market value for a sale or a rental can be a difficult thing to manage and it comes with increased risk.
Consider hiring a professional property inspector to give you a detailed rundown on what you’ll need to do within the next five years, along with estimated costs. Surprises can be very, very expensive to fix and require time and administrative management on your part to get done. Feel free to reach out and I can put you in touch with a few on the Rhode Island contractors we have used in the past so you can better understand the scope of work necessary to renovate your inherited home.
4) Selling a property for top dollar costs money.
Buyers expect a lot in our current market, and if a property is not up to retail condition it will not receive many attractive offers. Receiving market value for your property will involve several steps to clean it up and get it ready to compete against other sellers in the Rhode Island market. If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy Rhode Island houses for cash, as-is. Matt Huff at Home Tree LLC will be happy to walk you through your selling options and even make you a cash offer for your Rhode Island home.
5) If the market will continue to appreciate faster than your other options…hang on to the property as an investment.
We can help you analyze the value of your property today versus the long-term benefits of holding it and renting it out. If you can use the equity in your inherited property in another way that outpaces the performance of the real estate market, you should sell and use that cash elsewhere. However, if you don’t have anything better to do with the money and the neighborhood is generally rising in value, hang on to the property – real estate can be a great investment if you know how to correctly read the market and manage tenants. I will be happy to give you a no obligation comparative market analysis to let you know the current value of your home as well as neighborhood statistics which may reveal underlying price trends.
6) Uncle Sam wants a piece of the action…
Don’t forget to discuss your inheritance with tax and legal professionals before you take action. There are major property and income tax consequences that will dramatically impact the cost of owning your investment as well as how much you have to pay for selling the inherited home. Reach out to us and we will be glad to point you in the right direction with lawyers and accountants in our local area that specialize in these types of situations.
7) Consider all your options.
In certain situations we may be able to help you structure a lease-option agreement that allows you to rent and sell at the same time – capturing the best of both worlds. These kinds of deals can be complicated, but our local Rhode Island investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine several prices for any property in the Rhode Island area – if you sold it today without doing any work, the highest price the market will bear, and the projected value of keeping it as a rental (along with the costs). These different estimates of value can help you make the most informed decision possible before taking action on your inherited home. Call us today at Home Tree LLC to start weighing your options and receive a no obligation cash offer in as little as 48 hours.