Inheriting a house may seem like an exciting prospect, but the truth is far from pleasant as it brings along a slew of expenses. It is not uncommon for well-meaning relatives to leave their properties to beneficiaries who are already struggling to make ends meet. Moreover, these houses are often in a dire state of disrepair and require a significant amount of money upfront for renovation before they can be transformed into an attractive property.
If you already own your dream home and have no intention of living in the inherited property, it is natural to feel emotionally attached to it. However, sentimentality alone cannot cover the expenses associated with an inherited house. This tough reality often leads to the decision to sell the property. Whatever decision you make, it is crucial not to delay taking care of the property. To manage your inheritance effectively, start by identifying the payment and contact details for any existing expenses.
To provide you with a useful starting point for managing an inherited house in Philadelphia, we have compiled a list of common monthly expenses that you may incur. Continue reading to gain insight into all the costs associated with holding onto the property.
Taxes
When holding onto an inherited house in Philadelphia, it’s important to keep in mind that you will still be responsible for paying property taxes. These tax payments may or may not be included in your monthly mortgage payment. Even if the mortgage is fully paid off, annual property taxes will still be due. Additionally, it’s worth noting that property tax rates may increase significantly as tax collectors reassess the property’s value based on the current market. As such, it’s crucial to budget accordingly and prepare for potentially higher tax payments in the future.
Insurance
If there is an outstanding mortgage on the inherited property in Philadelphia, you may be required to pay mortgage insurance and property insurance while holding onto the property. The amount of insurance required may depend on the remaining balance of the mortgage. It’s important to carefully review the terms of the mortgage and consult with the lender or a financial advisor to understand your insurance obligations. Additionally, even if the mortgage is fully paid off, property insurance will still be necessary to protect the property against unexpected damages or disasters.
Assumption of Mortgage
Assuming the mortgage is sometimes an option when holding onto an inherited house in Philadelphia. However, whether or not you can assume the mortgage will depend on the language of the original contract. It’s essential to carefully review the terms of the mortgage and consult with the lender or a financial advisor to understand your options. In the case of a reverse mortgage, you would need to pay off the loan to retain ownership of the property. Keep in mind that assuming the mortgage may come with its own set of financial obligations, so it’s crucial to consider all options and carefully weigh the pros and cons before making a decision.
Utilities
Although you are not necessarily obligated to pay the utility bills under the name of the deceased, it’s still important to keep them up to date if you plan on residing in the inherited property in Philadelphia. Failure to pay these bills can result in a lien being placed on the property, and the amount owed would be deducted from the sale proceeds if the property is sold in the future. As such, it’s important to prioritize paying utility bills and ensure they are current to avoid any negative financial consequences down the line.
Maintenance
If you are considering holding onto the inherited property in Philadelphia, it’s highly advisable to have a professional inspection done before making any decisions. This will give you a comprehensive understanding of the property’s condition and potential maintenance and repair costs. Depending on the length of time the house has been vacant and the extent of any necessary repairs, holding onto the property could become exceedingly expensive. Monthly expenses for repairs on older properties can easily equal or exceed mortgage payments, so it’s important to budget accordingly and be prepared for potentially significant costs. Having a clear understanding of the property’s condition and estimated costs will enable you to make informed decisions about whether to hold onto the property or explore other options.
Yard
Vacant homes are often easy to spot because the yard has become overgrown and unkempt, contributing to the property’s distressed appearance. If you plan on holding onto an inherited house in Philadelphia, it’s crucial to ensure that the yard is properly maintained. This will not only enhance the property’s curb appeal but also prevent potential hazards such as overgrown tree branches and weeds. Unless you have the time and resources to manage the yard yourself, you may need to hire a professional landscaping or lawn care service to keep the property looking its best. A well-maintained yard can also attract potential buyers if you decide to sell the property in the future.
Unless you have a plan for the property, holding onto an inherited house in Philadelphia is costing you money. Property Buyer Today will pay you a great price and close when you are ready. If you don’t feel that you can handle the emotions of going through the possessions of your loved one to clean out the property, you can leave everything in place or take what you like, Property Buyer Today will handle the rest for you. Call Property Buyer Today at 844-977-3336 or send us a message today!