If you find yourself in a situation where you have inherited a house, the first thing to understand is whether there is still a mortgage.
If you inherit a house with a mortgage, you unfortunately inherit the mortgage as well which can be a big financial cost.
But, what if you’re in the opposite situation?
Are you wondering, what should I do if I inherited a house with no mortgage?
This is the best-case scenario when inheriting a house. You are left with a few options on what you can do with your mortgage free home.
Four Options:
- Keep the house
- Become a landlord and rent out the property
- Sell the house on the open market
- Sell the house fast
What Should I Do if I Inherited a House with No Mortgage?
In most circumstances you inherit a house unexpectedly so it’s common for beneficiaries to ask, what should I do if I inherited a house with no mortgage?
We are here to help! We have gathered a list of four options on what to do with your newly inherited home.
- Keep the house
The first option seems obvious, keep the house!
With no mortgage payments, the house becomes an added asset. If you choose, you can move into the inherited home and make it yours.
This is a great option for those who are renting or have a mortgage on their current home as you will no longer have to incur those monthly payments.
Important Note:
Before deciding to move into the home, understand if there are any necessary renovations that would need to be done. It is important to know this for your safety and to also understand any costs of moving in.
- Become a landlord and rent out the property
If you do not want to move into the home but would like to keep it, you can alternatively rent the house out.
By renting you would create a new source of income for yourself.
But, it is important to understand the responsibilities and obligations of being a landlord before making this decision.
Some key things to consider when understanding how to transition the property into a rental property are ensuring the house is safe for tenants, switching insurance to a rental property and understanding what to do with problem tenants.
- Sell the house on the open market
If the above two options don’t suit you and you’re still wondering, what should I do if I inherited a house with no mortgage, you may want to consider selling the house on the open market.
Since the house does not have a mortgage, any money made on selling the house will only be profit.
You may consider using the services of a broker to help you sell the inherited home but understand that you will have to pay a standard commission on the completed sale of the house.
Important Note:
There is a downside of selling the house on the open market that you will want to consider. There is the possibility that potential buyers with not qualify for a loan to purchase.
Why it matters:
The longer your house is on the open market, the more expenses you will incur such as taxes, insurance, etc.
- Sell the house quickly
If you’re worried about not selling the house on the open market quick enough and hoping there’s still one more option to what should I do if I inherited a house with no mortgage, you’re in luck!
You can decide to sell the house quickly for cash to investors. This means that you will not have to pay any agent or agency fees and the house can be sold in a short period of time.
By selling to an investor, there is no need for renovations as investors often buy the house as it is.
You also eliminate the cost of advertising on the open market.
Why sell for cash?
If you sell the house for cash, you eliminate the risk of a potential buyer failed loan approval and you get instant cash in your pocket.
Now when you ask yourself, what should I do if I inherited a house with no mortgage, you know what options you have.
Your choice in the above four options is completely dependent on your surrounding circumstances and your financial position, the tax associated with inheriting property; the current status of the real estate market; etc.
If you feel that the fourth option is what is best for you and you’re thinking, “I want to sell my house quickly in Birmingham ,” you’re in luck! We buy houses in Birmingham AL. Anywhere in Central Alabama, we are who you should call to get Cash for your House.