Many people these days find themselves with a home that was given to them from a relative, an estate inheritance, or a buyout situation. When it comes to making a profitable plan for the home, they struggle with what to do with it.
Many of these inherited homes are older, in need of repair, or outdated on the inside. We see this all the time with our clients. Fixing up a home probably wasn’t on your to-do list, and it probably isn’t something you would enjoy, much less have time for. But how do you make a plan for this inherited home?
Here are the pros and cons of fixing up a home, versus selling it “as-is”
PROS: Reasons why you may want to consider fixing up the home before you sell it.
- It will greatly increase the value of the property! A good contractor can give you an estimate of how much each project will cost, and a real estate agent can give you an estimate of what your home would be worth in today’s market if it was fixed and remodeled. Seeing the real numbers of costs and PROFIT will likely help you make up your mind.
- Gain much more money for the estate’s creditors and heirs. If you sell the home after it is updated and repaired, there will be more money to invest, or more to split between parties. Seeing the number value for what it will be afterward, may certainly change the minds of the new owners.
- Honor your loved ones through the rebirth of their treasured home. By restoring the home to a like-new condition, it will bring the pride in ownership that it once had. You will feel good about making it beautiful again! After seeing it restored, you can make the best choice for your future and your finances.
CONS: Reasons why you may not want to fix up the home, and just let it go “as is”
- The time investment. The time it will take to fix up a home by yourself, or if you hire multiple contractors, will be several months. Right now, many contractors are putting people on a waiting list, and coordinating this project will mean missed time from work, from home, or from personal hobbies or activities. Renovating a house will take upwards of 6-to-9 months by yourself, and depending on the condition and your experience level, it may be even longer.
- Working with contractors. If you have worked with a variety of contractors in the past, you know that this can be challenging. Sometimes they don’t show up, and you are left sitting and waiting for them to call you back. We have heard horror stories from other people, of how they started a job and did not finish it! It takes a patient person to work with some contractors.
- Be able to wait 6-9 months before the sale. When you are repairing the home, you have to expect the unexpected! Prepare for things to go a little longer than you thought. Delays are a natural part of renovating a home.
- The housing market may shift during the renovation. Right now, the housing market is insane, but that may not be the case in a year from now. No one knows what the market will do, so you have to choose which is the right path for you and your future.
Home Seller Tip: You may find it easier to sell a home “as-is” in this market! Visit our investor portal to see more about this option: http://cashhomebuyeratl.com/
Call us for help if you are unsure of what to do with your inherited property.
- It is repaired on YOUR timeline
- No lender is involved
- No real estate agents or commissions to pay out
- No repairs or clean-out is necessary
- Fund the estate quickly
Light Box Homes in Atlanta has the experience and sensitivity to help you work out the myriad of issues that are unique to inheriting residential real estate. We provide solutions ranging from cash offers, to marketing inherited properties, and even home renovation project management. Contact us today when you are ready to reach for your real estate goals!