Last Updated on May 18, 2020 by Kim Labriola
You’re Inheriting Your Family Home, Now What? Part I
First off, I am sorry the loss of your loved one. After helping several families through this real estate transaction process, I’ve learned that this can be an emotionally charged time for a family. Homes often have a lot of sentimental value, especially if they’ve been in the family for many years and have a lifetime of memories associated with them. Sometimes old sibling rivalries and negative family dynamics can come to surface at times like this which can further complicate the situation.
I decided to write a series of blogs to help you. This won’t bring back your loved one, but I can try to help you plan for the situation and ensure you have the best experience possible dealing with the home. I am not an attorney or financial expert, and I cannot give legal or tax advice, but I can connect you with trusted professionals who can assist in those areas.
“What do we do with the home?”
There are a few different paths you may take here. You can keep the home and either move in, rent it out, or sell the home.
Option 1: Keep the home for family use
You may be able to keep the home in the family and use it for vacations or family get-togethers. You will need to speak with the other heirs to see if this is feasible. Don’t forget about the expenses that this will entail including insurance, property taxes, utilities, HOA dues, maintenance, security, etc. You’ll need a plan for who will be responsible for paying for those items. Will you use the home enough to justify the expense?
Option 2: Move into the home
You or one of your family members may be able to move into the home. The question that arises here is will the family member occupying the home be able to buy out the others’ interest. It is important to be honest with yourself and one another here. Is it feasible to keep the home and will it justify the expense? A common problem occurs when one sibling does not want to sell the home. It is best to contact an attorney to see what options you have in a situation like this.
Option 3: Rent the home
You may also keep the home as a rental. This can offer some tax advantages, so speak with your accountant. It may also be a lucrative business if the property has a positive cash flow. The problems that come up are that you are entering a business partnership with you family. The property can be difficult to manage if you are out of state, and maintenance costs and the time commitment involved can be difficult to divvy up fairly.
Option 4: Sell the home
Often the best option is to sell. Contact me to schedule a meeting to view the home so I can prepare a Comparative Market Analysis for the property to see what the home is worth.
If you have questions regarding inheriting your family home, or would like to schedule a free consultation to discuss your situation, please call Nick with Long Realty at Nick@RealTucson.com or 520-975-8956