What to Do With an Inherited House You Can't Afford to Keep

Inheriting a house sounds like a windfall, but the carrying costs can be overwhelming. Here's how to handle it quickly.

Inheriting a house can feel like a blessing, but for many heirs, it quickly becomes a burden. Property taxes, insurance, utilities, maintenance, and mortgage payments if the property has a mortgage can add up to thousands of dollars per month. If you can't afford to keep the property, selling quickly is often the best decision.

The Hidden Costs of an Inherited Property

Many heirs underestimate the carrying costs of an inherited property. Even a paid-off house costs money to hold: property taxes $2,000-$8,000/year in the KC metro, homeowner's insurance $1,000-$3,000/year, utilities to keep the property from deteriorating, and maintenance costs. If the property has a mortgage, add that to the list.

The Emotional Challenge

Selling a parent's or loved one's home is emotionally difficult. Many heirs feel guilty about selling quickly, as if they're dishonoring the memory of the deceased. But keeping a property you can't afford to maintain often leads to deterioration that reduces the value and makes the eventual sale harder.

Your Options

You can rent the property if it's in rentable condition, sell it on the open market which takes time and may require repairs, or sell it to a cash buyer which is fast and requires no repairs. For most heirs who can't afford to keep the property, a cash sale is the most practical option.

How We Help Heirs

At Midwest Equity Advisors, we work with heirs and estates regularly. We understand the emotional complexity of these situations and approach every transaction with sensitivity and respect. We can often close quickly, allowing heirs to settle the estate and move forward.