So you inherited a property in Durham, NC from your parents or relatives. What now?
Of course, the answer will depend on a number of factors such as the current state of the property, the number of inheritors, or your current financial situation. Ultimately, you will have three options: to live in the house, to rent out the house, or to sell the house.
But before deciding on your preferred option, here are a few things that you need to consider.
First, you need to consider probate in Durham, NC. Probate is a process of handling an estate. You don’t have to worry about this if you received the house from an executor. If you are the executor however, you will have to check out probate.
In North Carolina, the house will have to go through probate unless it is owned jointly with rights of survivorship or is owned by a living trust. It is best to hire an attorney that specializes in probate law to assist you.
Next, you need to consider the value of the home. Ideally, you should avail services from a home inspector and a real estate agent for this step. The home inspector will determine the condition of the home—whether it is habitable as is or would need repairs—while the real estate agent can help you determine the market value of the home if you are planning to sell or the rental income if you are planning to rent it out.
Lastly, you need to consider the current expenses of the home that you will be responsible for.
These include mortgage (unless the estate has already paid off the mortgage), property insurance, liability insurance, electricity, water, sewer, landscaping, taxes, etc. Until you have decided on what to do with the property, these will have to be paid regularly.
Once you have considered all these, it is now time to consider your options.
Living in the property
If you decide to live in the property, you inherit it at market value. Your living arrangement might also be a point of discussion if you have siblings and you all have inherited the property. Some advantages of this option would be having the time to go through your parents’ or relatives’ belongings and receiving capital gains when you finally decide to sell.
Renting out the property
If you decide to rent out the property, you first have to make sure that it is habitable enough to be rented out. You also have to deal with who will manage the property, which you can do yourself or hire a property management firm to do it for you.
An advantage of this would be the option to deduct depreciation on your property tax every year. However, you will not get the capital gains exclusion since the property will not be your personal residence.
Selling the property
This is usually the best option especially if you are splitting the property with your siblings. Selling inherited property in Durham, NC, you will have little to no gain in terms of tax because you will inherit the property at current market value.
There are a number of ways in which you could do this option. If the property has deteriorated, you might need to fix it up before you sell it. However, you may also sell to house flippers who can do the renovations needed and sell it for a profit.
If you’re planning to sell your house fast in Durham, NC, you might also want to consider a cash home buyer.
Jolific Homes is a no-nonsense house buying company that offers cash for houses in Durham County, NC. We’re local home buyers serious about buying your house. No repairs, no inspections, no agents, no fees, no commissions.
Our process does not involve getting pre-qualified by a bank in order to obtain a mortgage loan to purchase your property or wasting your time listing the property on the MLS, Zillow, Realtor.com, or any other listing platforms.
To find out more about our unique and alternative ways to sell your house fast in Durham County, NC for cash, call us today: (919) 867-4463