Should You Sell, Keep, or Rent an Inherited Home?

[00:00:00]You've just inherited a home. Now, what?

[00:00:03]Do you sell it? Do you keep it? Do you rent it out? Here's the exact framework I walk every family through. There's no universal right answer, but there are three questions that if you answer them, they'll point you in the right direction. Question one, can everyone agree? If there's multiple heirs, everyone needs to be on the exact same page. Disagreement is one of the biggest reasons that a property can end up sitting on the market too long or even worse, end up in litigation. Question two, and this one is super important.

[00:00:35]What are the carrying costs? Every single month that that property sits unsold, that is a month that somebody has to pay the electric bill, the water bill, the insurance, the taxes, the mortgage, the HOA if there is an HOA.

[00:00:51]And all of those bills add up quickly.

[00:00:54]Question three, what are the tax consequences?

[00:00:57]If a home has appreciated significantly since it was purchased, selling it soon after you've inherited it, might actually have some tax advantages for you. Most families will do the math and they find that selling it typically makes the most sense. However, there are situations where keeping it or renting the property out will make more financial sense.

[00:01:19]The important thing for you is to make that decision based on facts, not on emotion and not on urgency. I'm Daniel Abreu and I'm the founder of the Abreu Group at Realty One Group MVP. If you're having trouble trying to decide what to do with an inherited home right here in Southwest Florida, go ahead and click the link in bio and schedule a consultation with me and I will help you walk through all of the options.