If you find yourself in possession of an inherited lot and considering its sale, you may have more alternatives than you realize. Take a moment to read this blog post to discover three financial options available when selling an inherited lot in Houston…
When a loved one passes and leaves you with a property, it might be a meaningful gesture but, the truth is, an inherited property isn’t always convenient to own. There are additional bills, expense, maintenance, upkeep, and stress; it can be time-consuming. When the property is a lot or even a larger piece of land, these problems can be compounded by neighbors dumping trash on the lot or encroaching on your property (either intentionally or not).
As a result, there may be many different reasons for you to want to sell your lot. If you are thinking of selling, you might first be thinking about selling with the help of a real estate agent. However, you might be surprised to learn that you have other 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 Houston?
First, Let’s Talk About Selling Through An Agent…
There’s nothing inherently wrong with selling through a real estate agent, but it’s important to be aware that an agent may require you to make repairs to the inherited property. For a lot, this may include cleaning the lot of trees and brush and/or fencing the lot, which can be expensive. Additionally, there are closing fees and substantial agent commissions to consider. This method can also be time-consuming, taking months to complete, which may not be desirable for some people.
So, what are the other options?
Second, Let’s Examine the Alternatives…
Option #1. Refinance
One option that falls under the umbrella of selling is to refinance the property through a bank and utilize the funds for other purposes. Although you would still retain ownership of the property, this financial option may be attractive to those seeking to access the money generated by the sale. While this option is most commonly used for houses, it can also be possible for lots and land.
You can still utilize the property for storage or rent it out for someone to put a mobile home or store equipment on, depending on the type of lot (residential or commercial) and any restrictions in your area. However, you would of course need to repay the loan to the bank. Nevertheless, it’s an option worth considering.
Option #2. Rent To Own
Another possibility is to sell the lot over the long term by offering it to a tenant. Typically, these individuals are unable to secure a mortgage but aspire to own a property. They would pay you rent, and over time, they would have the opportunity to buy the property either by paying an additional amount above their rent, which would contribute towards the property purchase, or by waiting until their credit improves in order to secure a mortgage and purchase the property. For lots, this option may be used by a tenant who uses the lot for storage or to put a mobile home on the lot and who wants to eventually build a house or business on the lot, but does not have the funds at the time.
Option #3. Sell Fast For Cash
One lesser-known option that owners of inherited properties may find appealing is the ability to sell the property quickly for cash. Instead of relying on an agent to find a buyer, a land-buying company (such as ours at 1800LOTS.com) can purchase your lot as-is for cash, usually within a few days. This option is swift, straightforward, and requires no additional work.
There you have it! 3 financial options you can pursue when selling an inherited property in Houston!