If you’ve inherited a property in Hawaii and you’re thinking about selling instead of being a landlord, you might have more options (or questions) than you realize. Read 0ur latest blog post to learn about the 3 financial options you can pursue when selling an inherited property in Oahu…
When a loved one passes and leaves you with a property, it might initially seem like a thoughtful gesture but, the truth is that an inherited property isn’t always convenient to own or manage. For some, it’s more trouble than benefit. There are additional bills, expenses, maintenance costs, general upkeep, property taxes and stress. It can consume both time and money (and for some, sanity).
So if you are thinking of selling, you might first be thinking about selling using the services of a real estate agent. After all, that’s what most people do when they sell a house, right? Sure is. However, you might be surprised to learn that you have options that you may want to consider as well. In fact, did you know you have 3 financial options you can pursue when selling an inherited property in Oahu?
First, Let’s Talk About Selling Through An Agent…
There’s nothing wrong with selling through a real estate agent – we often use their services ourselves – but you should be aware that an agent may have you fix up the inherited property first. Then there are closing fees and the hefty agent commission you’ll have to pay afterward – usually 5 to 6%, which is no small item in Hawaii. And this method can take months, so some people don’t like how long it takes or the uncertainty of finding a buyer at all.
So, what are the other options?
Second, Let’s Look At The Other Options…
Option #1. Refinance
One option, which is a form of selling, is to refinance the property through a bank and use that money for other needs elsewhere. Although you’ll still own the house, this is a financial option that some people might consider if they are selling in order to get liquidity.
You can still use the house, or rent it out to tenants if you choose, and you’ll need to pay back the loan to the bank, but it’s one option to consider if you want to keep the property but get some cash out.
Option #2. Rent To Own
Another option to consider is selling the house over the long-term to a tenant. Typically, these are tenants who can’t get a mortgage due to credit problems but still want to own a house. So instead of paying a bank, they’ll pay you rent and over time they’ll incrementally be able to buy the house (either by paying you an additional amount above their rent that will go toward the purchase of the property or by waiting until their credit is cleaned up to purchase the house with a traditional mortgage). This is one of those win-win scenarios, but it does mean acting like a landlord for years in most cases.
Option #3. Sell Fast For Cash
Last but most certainly not least, a third option that owners of inherited properties might enjoy is the ability to sell their house quickly for cash. Instead of selling through a traditional real estate agent (and hoping they can find a buyer which is never a certainty), you can work with a house-buying company (like what we do here at Oahu Home Buyers) and they’ll often buy your house ‘As Is’ for cash on your timeline, possibly in even a week. It’s fast, simple, and doesn’t require any work. You don’t have to pay any fees, you can sell your house privately and you get the certainty of a completed transaction.
There you have it! 3 financial options you can pursue when selling an inherited property in Oahu!