Inheriting a house may seem like a dream come true on the surface. In reality, it’s incredibly complex and can be pretty expensive. For many, that makes selling an inherited house in Canada an attractive option. When you inherit a property, you don’t just get the home; you also get saddled with obligations. Repairs, maintenance, and taxes can come with the territory. That’s a lot of expenses to juggle, and it might be a bigger financial burden than you want to shoulder. Many people decide that keeping the home isn’t the best idea. If you’re wondering if selling an inherited house in Canada is the best move, here are five reasons to sell.
When you inherit a home, you are financially responsible for the property. If there is still a mortgage, you’ll have to pay it. You also have to address any liens too.
At times, you may have fees related to poor maintenance. Many municipalities have bylaws requiring properties to meet minimum standards. If the property fell into disrepair or the grass grows too long, then there may be fees to pay.
For income properties, you have different obligations. You’ll have to dedicate time, energy, and money to address tenant’s needs or to handle legal issues that may arise. If you want the tenant to vacate, navigating the laws may require an attorney, giving you another cost to manage.
Often, the easiest way to avoid these financial obligations is to sell. Once the property is no longer yours, most of the responsibilities fall into someone else’s hands.
Repairs and Maintenance
In the vast majority of cases, inherited houses aren’t brand new. While their exact age can vary, all homes need some repairs and maintenance including new homes after a short time. Handling those requirements can be shockingly expensive, especially if your relative neglected any of the work.
If the house is in disrepair or severely outdated, the cost associated with getting it into a livable or comfortable condition could be incredibly high. Foundation work, roof replacements, plumbing repairs, electrical updates, and similar projects come with massive price tags.
If you’re holding the house during one of our Canadian winters, then you’ll get to deal with shoveling sidewalks and driveways. Make sure you winterize the property if it’s vacant so you don’t get a bursting pipe and a flood. Floods will cause major damage, mold, and result in a major repair bill.
Plus, these costs continue indefinitely. There is never a point where maintenance and repairs cease while you own the house; it’s an ongoing obligation.
If the idea of paying for the work is too much to bear, selling an inherited house is the better choice. Plus, if you work with a direct buyer like GTA House Buyers, you can sell as-is. You won’t have to worry about prospective buyers demanding repairs, allowing you to save a substantial sum of money.
Removing Personal Property
When many people inherit a property, they receive more than the structure; they also get the personal property inside. Unless you plan on using the house in its current state, you’ll have to shoulder the burden of removing all of the furniture, personal effects, and household goods.
If you handle the removal yourself, it takes a lot of time and energy. Plus, you may have to rent large enough vehicles to move big pieces or pay fees to throw away items that are in poor condition.
Alternatively, you can hire a company to handle the work. While this is more convenient, it can be expensive.
Luckily, if you’re selling an inherited house in Canada, avoiding all of this is possible. Direct buyers aren’t just open to buying the home in as-is condition, but they may also be willing to deal with the personal property removal. This lets you save time, energy, and money, making it an efficient option.
Property and Estate Taxes
Inheriting a home comes with significant tax obligations. You’ll have to deal with both property and estate taxes, and those can add up quickly.
While estate taxes are largely unavoidable if you owe them, property taxes are only your responsibility for the period you own the home. By selling an inherited house in Canada, you can lessen this liability.
Plus, if you get a fair price from a direct buyer like GTA House Buyers, your estate taxes may be less of a burden. If the home has enough equity, you could use a portion of what you make from the sale to cover that cost. That can make selling an incredibly attractive option.
Reduced Financial Flexibility
If you inherit a home with a mortgage and decide to take it over, you reduce your financial flexibility. It impacts your credit report and debt-to-income ratio, making it harder to secure other kinds of financing if the need arises.
Plus, if the repairs and maintenance are costly, you may lose even more financial agility. It could take a big bite out of your savings, creating financial hardship.
However, most of those situations resolve by selling your inherited house. You can pay off the mortgage and keep your savings intact, especially if you sell as-is.
Are You Selling an Inherited House in Canada? Let GTA House Buyers Make It Easy
For many people, keeping an inherited home isn’t a viable option. If that’s the case, there is a fast solution. By selling your inherited house to GTA House Buyers, you can avoid many expenses. We’ll buy the property as-is, so there are no repair or maintenance requirements.
Plus, we can close fast, allowing you to move forward in less time. You’ll also get a fair price, ensuring you get the correct value from the inheritance.