Congratulations! You have been blessed with an inheritance of a house. Although this may seem exhilarating, the reality is that managing it can be daunting and expensive. In most cases, those who leave their property to beneficiaries are not aware that they will also incur expenses such as insurance premiums, taxes, utility bills and upkeep costs – these usually need to be paid on a monthly basis.
If your dream home is already yours, and you feel a strong bond to the inherited property but have no interest in living there, it’s easy to understand why. But remember that sentimental feelings don’t pay for bills – the cost of carrying an extra house can be overwhelming.
While it’s easy to overlook the costs involved with selling an inherited house in Houston, these costs can quickly add up and cause problems if not addressed. Therefore, we’ve assembled a comprehensive list of typical monthly payments as a starting point for you to consider when thinking about what expenses await you during this process. Keep reading to discover all of the potential holdings costs associated with owning an inherited home in Houston!
Taxes
Houston residents can be subject to high property taxes and interest rates, reaching up to 6% annually or more when inheriting a home. As such, paying your property tax obligations is of the utmost importance if you wish to keep hold of your inheritance. Whether or not you incorporate property taxes into your regular mortgage installment is up to you. Even when the house has been completely paid off, annual tax payments will still be necessary. The amount could also inflate significantly due to a reassessment of the home’s value based on current market trends.
Utilities
Every month, you can expect certain utilities to be charged to your account – from electricity and gas bills all the way down to garbage collection fees. Here in Houston TX the average electric bill is $157, the median gas bill is $70, and the standard water bill is around $30. If you’re also paying for cable or internet service, you could be looking at utility payments above of $250/month!
Insurance
Should you retain ownership of a mortgage, you will also be obligated to pay for both mortgage and property insurance. Though the price tag associated with home insurance in Houston is usually low, it is yet another sum that needs to be paid on a monthly basis.
Assumption of Mortgage
If you choose to keep an inherited house, oftentimes it is possible for you to assume its mortgage. However, the true deciding factor is how the original contract was worded – if a reverse mortgage had been taken out on said property, then you would need to settle that loan in order to retain ownership of the home.
Maintenance
If you’re thinking of keeping your inherited property, it’s a good idea to get a professional inspection prior to making any decisions. Depending on the status of the house and how long it has been vacant, owning an inherited home in Houston could result in costly repairs and upkeep. Sometimes code violations will make it even tougher to sell on the market. Make sure that you understand what kind of condition the house is actually in before taking ownership. Houston is an established city, with a plethora of residences built in the mid-1900s. The repairs required for these older buildings can often exceed mortgage payments each month; this explains why many properties opt to be sold “as-is” rather than publicly listed on the market.
Yard
It’s not hard to determine which houses are vacant, since their yards look unkempt and overgrown. To make sure your property doesn’t join the ranks of neglected homes without owners, you must take time off to manage your yard – or hire someone else who can help you maintain it.Unless you have a clear plan for the property, retaining an inherited house in Houston is financially draining. Selling with an agent can be difficult, costly, and time consuming. Sound Homebuyers will pay you a great price and close when you are ready. If you don’t feel emotionally prepared to sift through your loved one’s possessions, leave it all as is or keep what has the most significance; Sound Homebuyers will take care of everything else. Call Sound Homebuyers at 832-966-3533 or send us a message today!