First and foremost, please accept our deepest condolences for your loss. We understand this is an incredibly difficult time, and navigating property decisions while processing grief can feel overwhelming.
You’re likely asking yourself, “I inherited a house, what should I do with it?” Should you rent it? Sell it? And if selling makes sense, what’s the best approach for your situation?
While you have many options to consider…
…we’re here to provide clarity and support.
We’re Phoenix Horizon Homes, virtual real estate specialists in Raleigh, and we’re actively acquiring properties throughout the Raleigh NC area. We regularly connect with individuals who’ve inherited houses and are seeking guidance—which is why we’ve compiled these essential considerations to help you navigate this process with confidence.
I Inherited A House, What To Do Next?
Here are several key factors to consider as you determine the best path forward:
1) Address any existing mortgage.
While it may seem obvious, it’s crucial to determine if there’s an outstanding mortgage on the inherited property (unless it was fully paid off, which simplifies things considerably). Some financial institutions allow mortgage assumption, while others require refinancing under your name. If qualifying for a new loan presents challenges, renting the property might not be viable for your situation.
2) Property management requires expertise and time.
If handling real estate agents, maintenance issues, tenant relations, rent collection, and all the complexities of property management doesn’t align with your skills or schedule, consider either hiring professional management or exploring a clean, virtual selling process. While keeping the property as a rental investment can be lucrative, it’s important to honestly assess whether you’re prepared for the realities of being a landlord.
3) Ongoing property ownership involves expenses.
It’s uncommon to inherit a property in perfect condition. Most inherited houses require significant updates or repairs to maintain their value and functionality.
We recommend engaging a qualified home inspector to provide a comprehensive assessment of necessary repairs and improvements for the next five years, along with estimated costs. When it comes to property ownership, unexpected issues can quickly become expensive burdens.
4) Maximizing property value requires investment.
If you prefer not to deal with renovation projects, kitchen updates, landscape improvements, and extensive cleaning, we understand completely. At Phoenix Horizon Homes, we buy Raleigh houses for cash in as-is condition, offering a frictionless, virtual transaction process built on our RISE values (Resilience, Integrity, Service, Excellence).
5) Consider long-term market growth potential.
Our team can help you analyze the property’s current value against the potential benefits of long-term ownership. If you have alternative investment opportunities that outperform the real estate market, liquidating might make sense. However, if the neighborhood shows strong appreciation potential and you don’t have more compelling investment options, holding the property could be advantageous—especially if you understand the local market dynamics.
6) Tax implications require careful consideration.
Before making any decisions, consult with tax and legal professionals about your inheritance. There are significant property and income tax considerations that will substantially impact the economics of owning or selling the inherited property.
7) Explore creative solutions.
In certain scenarios, we can help structure innovative arrangements like lease-option agreements that enable you to rent and sell simultaneously—combining the advantages of both approaches. While these arrangements can be complex, our virtual-first approach and expertise in the Raleigh market can help create a solution that aligns with your specific needs.
8) Evaluate multiple scenarios.
Our team will help you assess various options for any property in the Raleigh area—including the as-is cash value today, the maximum market value with improvements, and the projected returns as a rental property (along with associated costs and responsibilities).