4 Ways to Sell an Inherited House
4 Ways to Sell an Inherited House
You had the passing of a loved one and inherited a house. Generally these times can be rough times… And sometimes the house can actually make the situation worse depending on the house and dynamics of it all.
This is a tough situation, so let’s guide you through all of your options to sell the house. From easiest and fastest to netting the estate the most. We will tackle them all.
But first, real quick, my name is Jeff Chubb and I am a recovering Investment banker, turned real estate agent that has sold more than a 1,000 homes. We get calls, texts and emails from folks just like you who are looking to sell a house and I absolutely love it! So whether you are needing to sell a house in the next 9 or 90 days… It doesn’t matter. Give us a call, shoot us an email or stop by YouTubeRealEstateAgent.com and fill in your information and we will reach out to you!
First let's talk about the easiest, fastest and most mindless way to sell an inherited house. You can sell it to an investor. I think at this point everyone has heard of We Buy Ugly Houses. They are an example of an investor that you can sell to. But there are also independent investors… As an example, my company and I are always looking to purchase houses.
A real estate investor is a business and not a community service. They are looking to make a profit on the property and make offers that are in line with them making a profit. In other words, they are looking to purchase the house at a discount. The investors will buy the property, do any repairs and restorations that are needed and then either hold on to the property as a rental property or flip it by selling it traditionally.
As I said earlier. Investors buy these houses at discounts. And because of that discount, they make the sale as easy as possible for a property owner. They will pay cash, close quickly and buy the property in as-is condition which can oftentimes include them doing the property clean out. But the ease and mindlessness of the transaction all of this comes at a cost.
The big thing is that you want to ensure they are reputable home buyers. Don’t just sell to a guy in a truck if you will… You want to be assured that they have the funds to close and go through with the sale.
Video Editor Notes: Option 2: Sell through an Auction The second way to sell an inherited house is through an Auction sale. These can oftentimes be a quicker sale, but not as quick as the investor. The sales will most likely net you more than the investor as there can be multiple interested parties with a bidding war.
Let’s talk about the Auction Process real quick. First you will need to select an auction firm while obtaining appraisals from a couple before making the final choice of who will represent you. You will most likely want to set a reserve price and will need to discuss the best strategy with your auction firm. The auction firm will then market the property to drum up demand. The day of the property auction will come and it’s a matter of doing a little hoping and praying that you get the result that you are looking for.
The fees related to an auction are the marketing and listing fees plus typically the auctioneer will take a commission of 2.5% of the sale price.
The third way to sell an inherited house is by selling it traditionally with a real estate agent. This is the most common way of selling an inherited property. It is also the least risky and most reliable way to sell an inherited home at the best and highest price.
As a seller, it can get a little overwhelming to sell a house. Especially when it’s an inherited home and there is already a lot going on with work, kids or whatever else that life throws your way. A real estate agent's job is to help make the process less stressful and to provide you with tips and contractors that will help the estate get the most money and the best terms for the property.
Experience makes a huge difference when hiring an agent. You do not want a newbie. You want someone who understands the market, has connections to contractors and can help position the inherited property in a positive light to investors. You will also want a seasoned agent for the negotiations. In most cases, inherited homes need some improvements which can cause issues with home inspections. The difference between a seasoned agent and a newbie on this factor alone can be thousands of dollars to your bottomline.
As you qualify an agent, make sure you ask how many houses they have sold in the last year. Video Editor Notes: The # of sales is most important. Not # of years Not how many years they have been selling. There is a big difference. Experience comes in a number of transactions. The top 10% of agents represents 90% of all sales.
If you are managing the process from a distance, then an agent will be paramount to getting the results that you are looking for. They will also be helpful in handling clean outs, repairs and getting the final paperwork needed for closing.
And then there is the 4th option which is selling the property as a For Sale by Owner. Actually… I have a hybrid option as well.. Let’s call it a bonus option which we will get to after this one. For Sale By Owners… Otherwise known as prime leads for real estate agents as 93% end up hiring an agent in the end!
A for sale by owner is someone who sells the house without the help of a real estate agent, lawyer or other professional. The reason is generally around people wanting to save money on the real estate fee. I always relate this to representing myself in a court of law. I may be good… But I don’t stand a chance going up against an attorney. Professionals in a field exist for a reason.
If you do decide to sell it yourself then make sure to focus on web marketing as that is the best way to find buyers. That’s really the only place where home buyers look nowadays. You will also want to do needed improvements and properly staging the house for the sale.
Be prepared to also do all the leg work like the smoke inspection, final water readings, being available for showings and final walk throughs. You may want to even look at your personal liability policies and increase it a bit for this sale. Real Estate Agents have errors and omissions insurance which protects them as well as the clients that they are representing.
And the bonus option… It’s doing a hybrid between the auction and the real estate agent. You can also hire a real estate agent who will provide you with ideas and suggestions on how to prepare the house for sale. You could then put the house on the market at a low price, allow 7 to 10 days of showings and then do a call for offers on a specific date. This should result in a bidding war where there would be multiple offers for you to choose from.
Those are your options when selling an inherited home. I am here to help whether you are looking to sell your inherited house here in Massachusetts or anywhere else in the country. I work with agents that also specialize in selling inherited homes and will help you achieve your desired goal.
Again, my name is Jeff Chubb with the Chubb Homes Team. My information is in the description below. Or you can go to YouTubeRealEstateAgent.com and fill in your info and we will reach out to you right away.
Again, don’t hesitate reaching out with questions. I am looking forward to help.
Until next time.