Not everyone knows that they will inherit property before it actually happens. In theory, inheriting property is a good thing, giving you the opportunity to own a house that you otherwise wouldn’t have had. But there are a lot of complications that can make inheriting a house more trouble than it’s worth. For one thing, when you inherit a house you may also inherit debts associated with the house, unless it was completely paid off prior to your inheritance. Certainly, you will need to start paying property taxes soon after your inheritance; and additionally, you may need to make repairs if the property wasn’t properly maintained before you inherited it.
This is why a lot of people choose to sell properties that they inherit. Not only does this free them of the responsibilities that they would undertake when inheriting a property; they also get to make a profit by selling houses that they didn’t have to invest in. The question for some is how that sale will work.
How Should I Sell an Inherited Property?
There are lots of different ways to sell a property. You can use a real estate agent, which seems obvious; but remember that real estate agents collect their fees based on the sale of the home. Although 90% of all real estate transactions do happen through multiple listings services utilized by real estate agents, this is certainly not always the best way to sell an inherited property. In fact, a lot of people choose to sell inherited properties themselves, specifically by utilizing a cash home buyer.
What Is a Cash Home Buyer?
When homes are sold on the traditional real estate market, the sale is usually funded through a mortgage loan. This means that the buyer has to apply to a financial institution like a bank for the loan. Many lenders actually deny buyers loans due to poor credit histories. This is one major reason why many sellers prefer cash home buyers.
Rather than having to apply for mortgage loans, cash home buyers are able to give cash for houses. Their payments are made entirely in cash upfront, which means that they won’t need to worry about loan applications falling through, and the seller will receive their payment much more quickly. Additionally, sellers usually don’t need to work through real estate agents when selling their properties to these buyers. Therefore, the cost of the real estate agent is not deducted from that cash offer.
Why Sell to a Cash Home Buyer?
There are several reasons why you may want to sell your house for cash. As previously mentioned, cash home buyers are more likely to give solid offers, as they don’t need to worry about applying for or being turned down for a mortgage loan. Furthermore, they do not require the assistance of a real estate agent, adding to your overall profit margin.
Cash home buyers usually buy homes, especially inherited properties, in order to flip them. This means that not all of the properties they invest in are turnkey properties. Rather, they require a good deal of work and renovations from the buyers so that they can be transformed into turnkey homes and sold for a profit. This means that you don’t need to worry about doing any repairs yourself before selling to this kind of buyer. Yet another cost is therefore eliminated.
Additionally, these types of sales typically move much faster than traditional sales. A home can stay on the traditional market for months before moving, no matter how hard a real estate agent works. When selling to a cash buyer, you can complete the entire process within a few weeks at the most. In some cases, you can even set your own closing date well ahead of time.
While selling to a cash buyer isn’t going to be for everyone who inherits a property, it can make life much easier if you need to sell a property fairly quickly. Make sure that you know what you’re doing as you move forward with the sale of your home; a cash buyer could be exactly what you’re looking for.