When you’ve inherited real estate in Chicago, it doesn’t necessarily mean congratulations are in order. Instead, it’s the beginning of a long road of decisions and details to handle at an emotionally difficult time. However, as the clock keeps ticking, holding costs will begin to add up, and you’ll need to take quick action to manage the property, or the outcome could be costly in many ways.
Minor repairs that go unchecked can quickly become significant damage. In addition, you may face fines if an HOA is involved, violate zoning codes by allowing overgrowth of your landscaping, and it becomes apparent when a home has been abandoned for an extended period, tempting criminal elements. Sticking your head in the sand is a decision that could lead to costly consequences, including increased stress. So stay tuned as we explore these five tips for people who have inherited real estate in Chicago.
Our first tip for people who have inherited real estate in the city of Chicago is to give it to a family member. However, you should be aware of the tax implications of this option, which could be more costly than leaving it as an inheritance. Therefore, you should consult an experienced real estate tax adviser whose recommendations you should consider before transferring the property.
Take Up Residence
Our next tip for people who have inherited real estate in Chicago is to consider taking up residence. While well-meaning loved ones or close friends may have left you a piece of real estate as a token of their affection, life is not often like fairy tales. Their property may not be the type of home you’ve always dreamed of owning, or you may already live in the home of your dreams. Or perhaps it’s located in another state or across the country. Or perhaps you’ve inherited a home in a state of physical or financial distress, draining your wallet instead of magically producing the windfall of cash everyone imagines an inheritance of real estate brings.
Another tip for people who have inherited real estate in Chicago is to rent it out as an income-producing property; however, this option can have hidden expenses. Nevertheless, you should understand the time commitment to managing a rental property. You’ll need the funds to afford periods of vacancy, handle repairs for your tenants promptly and deal with turnovers, which typically include replacements and upgrades to meet more current tenant demands and bring the highest return on the property. You’ll also need to deal with tenants, from the screening process to collecting back rent. You’ll also need to market to get tenants in place and possibly deal with evictions, which can be pretty intimidating, and missteps can be costly. Finally, you need well-honed people skills and must follow all laws governing landlords with any HOA, local ordinances, or state or federal laws, including in your advertising.
An excellent tip for people who have inherited real estate in the Chicagoland area is to turn it into your second home if you can afford to. It’s nice to have somewhere to get away that is yours; however, responsibilities come with the benefits of a vacation home. Depending on the amount left on the mortgage, you may have house payments in addition to the insurance, taxes, and monthly utilities that continue to add up while you’re also paying for your primary residence. When you add it all up, you may be better off renting a luxury property for your vacations, leaving the headaches and expenses to the landlord.
The best tip for people who have inherited real estate in Chicago is to take the quick and easy option, sell directly and walk away with cash in hand without paying high commissions and leave the work, worry, and financial risks associated with the property behind you. Working with a professional home buyer from Global Abundance LLC will connect you with our network of the most highly regarded providers in the industry to help guide you with your property, including professional tax advisors. In addition, a local investor turned professional home buyer at Global Abundance LLC can guide you through your selling options step-by-step with no obligation. At Global Abundance LLC, we provide you with the information to make an educated decision about what will earn you the most profit and what is best for you when considering both your current personal and financial circumstances. When you receive an offer from a direct buyer at Global Abundance LLC, we want you to agree it is fair; that is why our process is entirely transparent. Our contracts are simple, there are no hidden fees, and we even provide you with a guaranteed closing date. We want you, our neighbors, to feel good about the deal you make with Global Abundance LLC long after closing. Call Global Abundance LLC at (800) 953-2124.