Inheriting real estate, for some, can be a positive experience. Unfortunately, that’s hardly ever the case. The reality is that inherited properties are hardly ever pristine and free of debt. If you find yourself in the predicament of inheriting real estate, you should consult with an attorney and an accountant that is experienced in real estate. You should do this whether you’re the sole heir or one of multiple heirs – especially regarding the tax implications of the inheritance.
You’ll need to fully comprehend what to look for in order to decide what to do with the property you’ve inherited in Hawaii. Consider what is best for your personal and financial well-being. By grasping these aspects of the real estate you’ve inherited, you and any other heirs can make a realistic assessment of the property. Then, you can come to a consensus on if you should sell the property. The reality of the situation often overrides emotional attachments and impediments to progress in these situations.
Current Condition
The first thing you should be aware of when it comes to inheriting real estate in Hawaii is that inherited properties are usually in a state of neglect, requiring restoration that will take far more money, time, and effort from the heirs than they have or are even willing to give. Additionally, properties that clearly need repairs don’t typically fare well on the market. They tend to linger for much more extended listing periods, with you still being responsible for the expenses it incurs during that time. If you’ve made the decision to sell an inherited property, then you’ve taken the first step. The next thing you’ll need to consider is which is the best sales method. Normally buyers scrolling through listings aren’t interested in fixer-uppers but will throw a disparagingly low offer at the seller, trying for the bargain of a lifetime. Instead of listing your property the traditional route, you could also consider a direct sale. This is especially preferable if you’re concerned about passing the traditional inspection and the disclosure process or dealing with an endless list of costly contingencies. At Oahu Home Buyers, we buy houses from all kinds of folks in different situations. There are no hidden fees or costs out of pocket before the sale, and you won’t even pay closing costs.
Mortgage Liens
Something else you should know about inheriting real estate in Hawaii is that it could come with hidden debt. For example, there may be a balance owed on the original mortgage, or perhaps back taxes due, or liens on the property, which ultimately become the heirs’ responsibility. Selling the house allows these debtors to be satisfied and any remaining profit split among the heirs. At Oahu Home Buyers, our team wants you to have the facts in your hands to make an educated decision about what is best for your situation. We aim to help you have a convenient, stress-free sale in addition to making the most profit on the sale, no matter how you decide to sell.
Holding Costs
Another component to consider when you inherit real estate in Hawaii is that it comes with monthly expenses of holding and maintaining the property as it is. This is especially burdensome for people who are already struggling to cover their living expenses. During the listing period, you also carry the financial risk of even more out-of-pocket costs for unexpected repairs that frequently occur in older properties. In addition to all of this, you’ll also want to keep in mind the rising cost of utilities. At Oahu Home Buyers, we will give you the complete picture of your potential profits from selling on the traditional market vs. a direct sale. We will detail the numbers used to calculate our offer. Working together, our team at Oahu Home Buyers moves swiftly. Handling everything in-house saves even more time, meaning your guaranteed closing is fast, often in days.
At Oahu Home Buyers, our highly seasoned pros can help guide you through everything you should know about inheriting real estate in Hawaii. We work one-on-one with sellers, taking the time to listen to and fully understand your situation. This way, we can help find the quickest, easiest, and most profitable solution. At Oahu Home Buyers, we won’t pressure you into the sale because we want you to feel good about working with us long after you leave the closing table. Reach out to Oahu Home Buyers today about how we can help you without obligation. Call Oahu Home Buyers at (808) 333-3677.