7 Things to Consider When You Inherit a House in Bay Area

7 Things to Consider When You Inherit a House in Bay AreaInheriting a house can be a blessing to some and a burden to others. While many people decide to move into the home they’ve inherited, others aren’t sure what to do. They’re already processing the emotions of grieving the loss of a loved one. It’s a difficult time as it is. Let alone figuring out what to do with this property you’ve now acquired.



Do you rent it out?

Do you sell and part with a piece of your family’s history?

Skye Homes – cash home buyers in the San Francisco Bay area – get a lot of calls from people who have inherited a house and are wondering what to do next. Although we’re home cash buyers in the Bay area, we can also help you determine the best option for your situation. Here are 7 things to consider if you have to decide between keeping or selling an inherited house.


Is the Mortgage Paid Off? If it Isn’t, You Have to Pay It

Did the person you inherited the property from have a mortgage at the time of their death? If they paid it off and there’s no current mortgage, that’s great! If there’s still a mortgage on the house, it’s your responsibility to pay it. Especially if you intend to move in or rent it out. Some banks may have you assume the loan. Others will require you to refinance into a new loan. It could be problematic if you don’t qualify for a new loan.

READ: What Happens If I Inherit a Property With a Mortgage


If You Want to Rent It Out, Be Prepared for Extra Responsibilities

Many people who inherit a house see an opportunity to rent it out for extra income. Keeping your inherited home as an investment property is a great idea IF you’re prepared to deal with tenants and the hassles of managing the property.

If property management, maintenance, and rent collection aren’t your thing, you could look into hiring professionals to handle those tasks. If you’re unwilling to hire anyone for those services, consider cashing out now by selling your inherited house.

READ: How Hard Is It to Manage Rental Properties With No Property Manager?


If You Want Top Dollar on the Market, You’ve Got to Put Money Into It

If you’re going to put your home on the market, it’s rare to inherit a property that’s been perfectly maintained and updated. It’s usually a home that’s seen some better days – maybe a few decades ago. You’re going to have to pay for repairs or updates to get your asking price.

If you don’t want to deal with renovations or repairs, remember, we buy houses in the San Francisco Bay area in “as-is” condition.

READ: What Renovations Will Pay Off When I Sell?


Your House Can Be on the Market for Awhile

There no telling how long it will take to sell an inherited home. Not everyone is in a situation where they can wait weeks, months, or even a year sometimes. If you put the house on the market, you also have to remember that you’re responsible for the payment of utilities, homeowners insurance, property taxes, lawn care/maintenance, or any existing mortgage until the house is sold.

This is why you need to move swiftly when inheriting a house. Selling directly to a real estate investor is often your quickest option to unload the property in “as is” condition. Otherwise, significant costs can accrue and the home sits vacant at risk of being vandalized.

READ: This Is How Long It’s Going to Take To Sell Your Home


Property Ownership Is Expensive

Like we mentioned earlier, inherited homes are rarely in stellar condition. Most inherited houses are in need of major improvements. If you opt to either move into the home or rent it out, have a property inspector give you a rundown of the home’s overall condition. It’s important to know how old the roof or furnace is. It’s important to know everything is structurally sound. Property ownership comes with surprises. Surprises can wreak havoc on your bank account or credit line.

READ: Why Owning a Home Is More Expensive Than You Think


What’s the Market Like?

If the area has rising property values, it might be best to hold onto the inherited house for a little while. While it’s certainly understandable that you’d be more inclined to sell if you really need to unload the property or need the money now, investing in real estate is fun. It can also be pretty lucrative. Sometimes a little pause or hesitation will actually reap you a bigger reward if you truly know how to read the market.

READ: 8 Neighborhood Features That Increase Your Home’s Value


The Taxman Cometh & The Taxman Taketh Away

Don’t forget to seek the advice of an attorney when it comes to your inheritance and taxes. Potential property and income tax implications need to be discussed prior to deciding if you’re going to move in, rent, or sell.

READ: Tax Consequences When Selling a House I Inherited in the Bay Area


Want a Cash Offer On Your Inherited House? Let’s Chat!

It’s important to weigh all of your options when deciding what to do when you inherit a house. If you’ve inherited a home in the Bay area, Skye Homes will be more than happy to share our knowledge of the market with you. We’ll assess the property’s condition. We’ll then help you determine the “as is” cash value, the highest sales price the market will bear, and the projected value and costs of maintaining the home as an investment property.

Call or text us at 510-220-0712 or submit the form at the bottom of this page and we’ll call you!

Picture of Jake Knight
Jake Knight

Jake Knight has been a residential real estate investor since 2016. He specializes in acquiring and renovating houses in the Bay Area, Sacramento, eventually expanding to over 15+ states. Jake’s prior experience in lending, going back to 2003, laid the foundation for solving complex real estate issues.

Drawing upon his background in assisting sellers with the task of transitioning from a home they have lived in for decades, Jake launched a “senior move management” business in 2021. This company provides valuable support to seniors during the process of packing, coordinating their moves, and downsizing as they transition into senior living communities.

In 2022, Jake expanded his services by becoming a licensed real estate agent in California, providing comprehensive solutions to his seller clients.

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On the other hand, there are some sellers who need a custom solution due to either the property’s condition or the seller’s personal situation, or a combination of the two.

When the property is in really bad shape, they’re likely going to sell to an investor, so it may make sense to save money on commissions and find their own investor.

Some examples of personal situations that we can help with are: hoarding, pre-foreclosure or other financial issues that require a fast home sale, house with non-paying tenants or squatters, severely delinquent property taxes, homeowners who want to rent back the home longer than normal, or sellers who value privacy and/or are embarrassed by their home.

If your seller lead meets these criteria, you should propose the idea of making an introduction to me. You can simply suggest to them that your partner or colleague buys houses and ask if they are interested in speaking with me. Remember, you are not performing real estate agent duties. See our disclaimer below. The main thing to keep in mind at this point is to qualify them as a good fit or not. I can help you with the documentation and process things.