First and foremost, please accept our sincere condolences for your loss. We understand this is an emotionally challenging time, and managing property matters can feel overwhelming when you’re already processing grief.
You’re likely wondering, “I inherited a house, what should I do with it?” Should you keep it as a rental? Sell it quickly? And if selling makes sense, what’s the best approach for your situation?
While you have many options to consider, each with its own implications…
… we’re here to provide clarity and support.
As bilingual real estate specialists in Chicago, we regularly work with homeowners who’ve inherited properties throughout Chicago IL, particularly those with older homes or code violations. Every month, we help families navigate inheritance situations with transparency and respect, offering straightforward solutions when traditional selling methods aren’t ideal.
I Inherited A House, What To Do Next?
Here are several important factors to consider when deciding what to do with your inherited property:
1) Make sure the mortgage is paid.
This may seem obvious, but if the property has an outstanding mortgage (unless it was paid off completely, which is fortunate!), you’ll need to address it if you want to keep the house. Some lenders allow mortgage assumption, while others require refinancing with a new loan. If you don’t qualify for refinancing, renting the property might not be feasible for your situation.
2) The investment is only as good as the manager.
If navigating property management responsibilities—dealing with brokers, maintenance issues, tenant screening, rent collection and all the day-to-day challenges—doesn’t align with your time or interests, consider professional management or selling now. While keeping the property as a rental can provide steady income, be prepared for the realities of becoming a landlord, especially with older Chicago properties that may have unique maintenance needs.
3) Property ownership costs money.
Very few inherited properties come in perfect condition. Most require significant updates or repairs, especially in neighborhoods with older housing stock or potential code violations.
We recommend hiring a professional inspector to provide a detailed assessment of needed repairs over the next five years, along with cost estimates. In Chicago’s older neighborhoods, unexpected issues can quickly become expensive problems, especially if city ordinance violations are involved.
4) Selling a property for top dollar costs money.
If you’d prefer to avoid the hassle and expense of making repairs, updating kitchens, improving landscaping, or addressing code violations, we understand completely. We buy Chicago houses for cash, as-is, with a transparent process that eliminates surprises.
5) If the market will continue to grow faster than your other options, hang on to the investment.
Our bilingual team can help analyze your property’s current value against potential long-term rental benefits. If you have better investment opportunities for the equity, selling might make sense. But if the neighborhood is appreciating and you don’t have more promising alternatives, real estate can be an excellent investment—especially if you understand Chicago’s unique market dynamics and neighborhood-specific trends.
6) Uncle Sam wants a piece of the action.
Before making any decisions, consult with tax and legal professionals about your inheritance. As a licensed real estate broker and probate specialist, we understand the significant property and income tax implications that can dramatically affect the costs of owning or selling your inherited property.
7) Consider all your options.
In certain situations, we might suggest a lease-option arrangement that allows you to both rent and sell simultaneously—giving you the advantages of both approaches. While these agreements can be complex, our extensive Oak Park investment experience and understanding of local ordinances can help you navigate the process successfully.
8) Compare a few scenarios.
We’ll provide you with transparent pricing scenarios for your Oak Park property—what you could receive by selling as-is today, the highest potential market price after improvements, and the projected value as a rental property (including anticipated costs and any potential code violation considerations).