I Inherited a House in Baltimore, Maryland – What are my options?
Firstly, we at Creo Home Solutions send our condolences during this difficult time. If you have inherited a house in Baltimore, it can often be a challenging time for many reasons. Dealing with property ownership is tough, even at the best of times.
You’re thinking, “I inherited a house in Maryland. What do I do with this house?” Should I rent it? Should I sell it? What if it needs repairs? How should I sell it?
Fortunately, there are MANY options available to you and… we can help!
We’re investors in Baltimore real estate, and we’re looking to buy houses each month in the Baltimore Maryland area. We often receive calls from those who have inherited a house and are trying to figure out their options. Below is some information and tips to help you through this process.
I Inherited A House, What Do I Do Next?
Here’s a few important considerations to help you make the right decision:
1) What if there is a mortgage on the property?
This may sound obvious, but if the person who left you a property also had a mortgage (unless it had no mortgage and was paid off, which is great!), you will likely have to pay it (assuming you want to keep the property). Some banks will allow you to assume the loan, while others may force you to refinance into a new loan.
2) What would make the property worth renting?
Some people who inherit homes decide to keep the house and rent it for extra income. That’s a great strategy for sure. You just need to be prepared to manage the property and the hassles that can go along with tenants and toilets. If you find that the idea of dealing with brokers, maintenance, tenants, collecting rent and all of the various aspects of property management isn’t the best use of your time, hire a professional to help you or cash out now.
3) What are the costs associated with owning the property?
It’s rare to come across property that’s been perfectly maintained. Often times, an inherited house in Baltimore needs major improvements.
It may be worth hiring a licensed Baltimore property inspector to give you a detailed rundown on what may need to be repaired or replaced within the next five years, along with estimated costs. Surprises can be very, very expensive, so it’s best to be prepared.
4) What are the costs associated with selling the property?
If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry! We buy Baltimore houses for cash, as-is.
Depending on the condition of the property, you may also wish to explore selling your property with an experienced Realtor. When selling your house with a Realtor, on average you will pay 5-7% of the selling price in realtor commissions. Additionally, there are other costs associated with selling your property in Maryland.
5) What direction is the housing market in Baltimore heading?
Creo Home Solutions can help you analyze the value of your property today versus the long-term benefits of renting. If you can use the equity in your property in another way that outpaces the performance of the real estate market, you should. If the neighborhood of your Maryland property is rising in value, it may be wise to hang on to the property – real estate can be a great investment if you utilize your asset for it’s highest and best use.
6) What does Uncle Sam get?
Remember to discuss your inheritance with your trusted tax and legal professionals before you take action. There potentially are major property and income tax consequences that may dramatically impact the cost of owning or selling your inherited property in Maryland.
7) What are my other options?
In certain situations Creo Home Solutions 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 Baltimore investment experience and associates can help you determine the best solution for your unique situation.
We’ll help you determine prices for any property near Baltimore – 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).