If you’re wondering what to do with an inherited house, you’re not alone. Every year, many Bloomington families find themselves in this exact situation, dealing with the emotions of a loss while trying to make big decisions about what comes next. The truth is, figuring out what to do with an inherited house can be overwhelming. But with the right information, it doesn’t have to be.
At Heartland Funding Inc., we’ve worked with dozens of local homeowners who’ve inherited properties and weren’t sure where to start. Whether you want to sell it, rent it, move in, or just explore your options, we’re here to help.
How to Move Forward
Step 1: Make Sure You Have Legal Ownership
Before you do anything else, check if the house has gone through probate. That’s the legal process that gives you the right to act on the property. If it hasn’t been settled in court yet, you may need to wait. In some cases, ownership passes directly if there’s a living trust or a transfer-on-death deed. But most of the time, probate is necessary.
Step 2: Check the Mortgage Status
Was the house paid off? If so, great. But if there’s a loan attached, you’ll want to contact the lender as soon as possible. Some loans can be transferred to you, while others may require a refinance. If you plan to keep the house, make sure you can afford the monthly payments, taxes, and insurance.
Step 3: Get a Realistic View of the House’s Condition
Inherited homes often need updates. Maybe the HVAC is old, or the roof needs attention. Before you commit to keeping or renting the property, schedule a professional inspection. This will help you understand what repairs you’re facing now and what could come up later.
Step 4: Think About What You Want
Ask yourself a few key questions:
- Do I want to live in the house?
- Am I ready to become a landlord?
- Would I rather sell it and move on?
All options are valid. It just depends on your goals. If the idea of handling repairs, tenants, or property taxes stresses you out, selling might be the cleanest solution.
Step 5: Explore the Financial Side
Bloomington’s real estate market has been steady, but holding onto a house comes with costs like utilities, maintenance, property taxes, and sometimes HOA fees. If you rent the house, will the income cover these expenses? If you sell, what will you owe in taxes?
The good news is that inherited homes usually receive a “step-up” in tax basis, which means you likely won’t owe capital gains taxes if you sell shortly after inheriting. Still, it’s smart to speak with a tax advisor before making any big moves.
Step 6: Selling Might Be Easier Than You Think
If you decide selling is the best route, Heartland Funding Inc. makes it simple. We buy houses in Bloomington as-is. No repairs, no cleaning, no staging. We can make you a fair, no-obligation cash offer and close on your timeline. Many of our clients come to us because they want a fast, hassle-free sale after inheriting a property.
Step 7: You’re Not Alone. We’re Here to Help
Trying to figure out what to do with an inherited house can feel like a lot. But you don’t have to figure it out on your own. Whether you’re leaning toward selling, renting, or just want to talk through your situation, we’re just a call away. At Heartland Funding Inc., we’ve helped many families in Bloomington make smart, stress-free decisions, and we’d be happy to help you too.