Getting Rid of an Inherited Distressed Property Might Be a Smart Move
Not everyone wants to hold onto a home. In fact, some would like to get rid of a home as quickly as possible. A person who inherits a property might not be thrilled with owning the property for very long and for good reason. The house simple could be way more trouble than its worth. If the property is distressed one, the hassles associated with owning could create nothing but an increase in stress in the head and a huge decrease in funds in a bank account.
Sometimes, the best thing to do with a house — for lack of a better choice of words — is to get rid of it. A distressed house can be a huge amount of trouble. Only someone capable of dealing with the various troubles might be able to effectively navigate a host of hassles.
And those hassles can be major.
Inheriting a Home Made Not So Easy
When a relative passes away, assets, generally, transfer to those named in a will. Being bestowed a home per the content of a will may lead some to think assuming ownership of the property will be easy. With certain homes, the house won’t come with troubles. A neglected home, however, may be nothing but troubles. The previous owner may have ignored repair work and other forms of upkeep, but the new owner may not be able to take the same lax approach.
The Condition or Lack Thereof
A home with a dilapidated roof, an uneven foundation, degraded plumbing, electricity that no longer is up to code, and pest problems really is not going to possess much equity. The property does not even need to have every one of those issues present to suffer a loss in value. Just one may be enough to drive the value down. At the very least, problems with the condition could scare away potential buyers.
Getting top dollar on a distressed property is not exactly likely. The property may remain on the market for months before a decent offer comes in. (Look at this site for an alternative to waiting forever to make a sale.)
Putting money into the property for repairs may come with complexities. Would the eventual sale of the property pay back the cost of the repair work? If not, then any money put into the house might not be the most prudent investment.
And the insurance company could make things even more complicated.
Insurance Policy Cancellations and Other Woes
The new owner of the property is responsible for it. This means liability and other types of insurance coverage must be in place. When the new owner goes shopping for a policy, the insurance company may threaten immediate cancellation after discovering problems during an inspection. The new owner may only have a limited amount of time to make the repairs. Those repairs might be very costly.
Working with a cash buyer to sell an inherited home as fast as possible might very well be the best thing to do. Distressed properties may not be worth all the hassles that go along with them.