Aloha, home seller. When you’ve inherited real estate in Hawaii, no matter which island, it doesn’t necessarily mean you’ve raked in millions or are even better off. Instead, it’s the beginning of a long road of decisions and details to handle at a potentially stressful time. However, as time goes on, holding costs can begin to pile up, and you’ll need to take quick action to manage the property or the outcome could be costly in many ways.
Small repairs that go unchecked can quickly cause considerable damage. In addition, you may incur fines if the HOA is involved. You can violate the zoning code by allowing the landscape to grow, and if it becomes clear that the house has long been abandoned, you could be tempting criminal elements. Sticking your head in the sand is a decision that could lead to costly consequences, including increased stress. So, explore these five tips for people who have inherited real estate in Hawaii.
Property Transfer
Our first tip for people who have inherited real estate in Hawaii is to give it to a family member. However, you should be aware of the tax implications of this option, which could be more expensive than leaving it as an inheritance. Therefore, you’d benefit greatly by consulting with an experienced real estate tax adviser. You would likely want to consider their recommendations before transferring the property.
Take Up Residence
The next piece of advice we have for people who have inherited real estate in Hawaii is to consider taking up residence. Though well-meaning loved ones may have left you a piece of real estate as a token of their affection, this gift can often be a burden. Their property may not be the type of home you’ve always dreamed of owning, you may already live in the home of your dreams, or it could be that it’s located in another state across the country. It’s possible you’ve become heir to a home in a state of physical or financial distress, draining your wallet instead of magically producing the jackpot of cash everyone expects an inheritance of real estate to bring.
Rental Property
Another tip for people who have come into real estate in Hawaii is to rent it out as an income-producing property; however, this too can be expensive. Nevertheless, you should’ve aware of the time commitment that comes with managing a rental property. You will need the funds to pay for periods of vacancy, handle repairs for your tenants promptly and deal with turnovers, which typically include replacements and upgrades to meet more current tenant demands and bring the highest return on the property. You will also need to deal with tenants, from the screening process to the collection of rent. You must market to get tenants in place and potentially deal with evictions. These issues can be pretty intimidating, and missteps can be costly. Finally, you need exceptional people skills and must follow all laws governing property owners with any HOA, local ordinances, or state or federal laws, including in your marketing.
Vacation Home
Here is another useful tip for people who have inherited real estate in Hawaii: If you can afford it, make it your second home. It is nice to have somewhere to get away to that is yours; however, there are daunting responsibilities that come with the benefits of having a vacation home. Depending on the amount left on the mortgage, you may have house payments in addition to the insurance, taxes, and monthly utilities that continue to pile up while you are also paying for your main residence. Taking all of this into consideration, you may be better off renting a luxury property for your vacations, leaving the headaches and expenses to the landlord.
Sell Directly
The best tip we can offer those who have inherited real estate in Hawaii is to take the quick and easy option. Sell directly and walk away with cash in hand without paying high commissions and leave the work, worry, and financial risks associated with the property behind you. Working with our professional home buyers will connect you with a network of the most highly regarded providers in the industry to help guide you with your property, including professional tax advisors. A local investor at Oahu Home Buyers can guide you through your selling options step by step with no obligation. At Oahu home buyers, we provide you with the facts to make an informed decision about what will earn you the highest profit and what is best for you when considering both your current personal and financial circumstances. When you receive an offer from us, we want you to agree it is fair; that is why our process is entirely transparent. Our contracts are simple, there are no hidden fees, and we even provide a guaranteed closing date. We want you, our neighbors, to feel good about the deal you make with Oahu Home Buyers long after closing. Call Oahu Home buyers at (808) 333-3677.