First, we want to express our sincere condolences. Losing a loved one is never easy, and on top of the emotional toll, you may find yourself facing a complicated web of decisions about what to do with the property they left behind. Dealing with real estate is challenging enough even in the best of times.
You might be asking yourself, “I inherited a house-what should I do now? Should I rent it? Should I sell it? If so, how should I sell it?”
There are many paths you can take. The good news is, you’re not alone. We can help guide you through this.
We’re experienced real estate investors in Nashville, and each month we work with families who have inherited property. We also buy several homes in the Nashville, Tennessee area every month. Below are some practical tips and important considerations to help you navigate the next steps with clarity and confidence.
I Inherited a House—What Should I Do Next?
Here are a few key things to think about as you decide how to move forward:
1) Make Sure the Mortgage Is Covered
It may sound obvious, but one of the first things you should do is determine whether there’s an outstanding mortgage on the property. If the home was fully paid off, that’s great. If not, you’ll need to take over the payments if you intend to keep the property. Some lenders may let you assume the mortgage under its existing terms, while others could require you to refinance. If you’re not able to qualify for a new loan, renting the property might not be feasible.
2) Managing Property Is an Investment of Time and Energy
A rental property can generate steady income, but it also comes with responsibilities. From working with brokers and contractors to handling maintenance issues and tenant concerns, property management can be time-consuming. If that doesn’t appeal to you, consider hiring a property manager. Alternatively, selling the home may be a more practical choice. Either way, make sure the decision fits your lifestyle and capacity.
3) Be Prepared for Repair Costs
Most inherited homes need some level of work, especially if they’ve been lived in for many years. Deferred maintenance is common. Hiring a professional home inspector can help you identify what repairs or upgrades are needed and how much they may cost over the next few years. It’s much better to understand what you’re getting into than to be caught off guard by expensive surprises.
4) Selling for Top Dollar Often Requires Investment
If your goal is to sell the home for the highest possible price, be aware that this usually requires repairs, updates, staging, and cosmetic improvements. Kitchens, bathrooms, landscaping, and curb appeal all matter. If you’d prefer to skip the hassle, we buy houses in Nashville for cash, in any condition. You can sell it quickly without lifting a hammer.
5) Think About the Long-Term Potential
If the home is in an area where property values are climbing, holding onto the house as a rental or long-term investment could be a smart move. We can help you evaluate the current value of the home and project potential rental income and appreciation over time. If you have a better investment opportunity elsewhere, consider cashing out. If not, the property might be worth keeping.
6) Understand the Tax Implications
Before you make any big decisions, it’s essential to speak with a tax advisor and estate attorney. Inherited property can come with capital gains tax, inheritance tax, or other liabilities depending on your situation. A professional can help you avoid costly mistakes and ensure that you’re handling things in a legal and financially sound way.
7) Explore Creative Options
Sometimes there isn’t just one right answer. In certain cases, a lease-option agreement might be an effective strategy. This allows you to rent out the property while giving a tenant the option to buy in the future. It’s a way to generate income while still positioning the property for a future sale. These types of deals can be complex, but our local experience in Nashville gives us the insight to help structure them correctly.
8) Run the Numbers
We’re happy to help you compare different scenarios. Whether you’re curious about the current market value of the home as-is, the projected sale price after improvements, or the long-term value as a rental, we can break it down for you in clear, simple terms. Knowledge is power, and we want you to feel confident in whatever decision you make.
We’re Here to Help
Inheriting a house comes with both opportunity and responsibility. Whatever your goals are-whether you want to keep the home, rent it out, or sell it-our team is ready to walk alongside you. We’ve worked with dozens of families in Nashville just like yours, and we’d be honored to help you too. We buy houses across the state of Tennessee and would be happy to discuss your situation with you.
If you have questions or want to explore your options, reach out today. There’s no pressure, just honest insight and a team who truly cares.