Introduction

When you’re searching for what to do with an inherited house in Philadelphia, PA, chances are you’re feeling a bit overwhelmed. Dealing with the loss of a loved one is challenging enough, but managing their property brings additional pressure. You might be wondering whether it’s better to sell the house, rent it out for passive income, or keep it for personal reasons. Perhaps you’re thinking about the time, effort, and money it takes to maintain or renovate an old home, especially if it’s located far from where you live now. You might also be concerned about the legal and financial implications of the house, including estate taxes, insurance costs, and maintenance fees. Most importantly, you want a solution that’s simple, fast, and beneficial for you and your family—without the hassle of dealing with endless paperwork or a long, complicated sale process.

This blog will explore the three main options for what to do with an inherited house in Philadelphia, PA: selling, renting, or keeping the property. It will give you all the information you need to make the best decision that fits your needs and situation.

What to Do with an Inherited House in Philadelphia: Sell, Rent, or Keep?

Inheriting a property comes with significant emotional and financial responsibility. If you’ve recently inherited a house in Philadelphia, PA, you’re probably at a crossroads, wondering whether you should sell it, rent it out, or keep it for personal reasons. This decision isn’t easy, and it depends on several factors, including the property’s condition, market conditions, your financial situation, and what’s best for your family. Each option has its own set of pros and cons, and understanding these can help you make a more informed decision.

Selling an inherited house might be the fastest and simplest solution for many people. On the other hand, renting it out could provide a long-term income stream, but it comes with maintenance and tenant management responsibilities. Keeping the property might be appealing for sentimental reasons, but it can also be a costly and time-consuming decision if the house needs significant repairs or upkeep.

In this blog, we will explore the advantages and disadvantages of each of these options and help you decide the best course of action for your inherited home.

Option 1: Selling an Inherited House for Cash in Philadelphia

Why selling might be the best choice:

Selling an inherited home can often be the most practical decision, especially if the property is in poor condition or you don’t want the responsibility of dealing with tenants or ongoing maintenance. A cash sale can be completed in as little as 7-14 days, meaning you can move on with your life without worrying about the property.

If the house needs major repairs or updates, a cash sale becomes even more appealing. You won’t have to spend thousands of dollars fixing up the property before you sell it, and you won’t have to deal with long months of waiting for a buyer to come through. Additionally, selling for cash can help you avoid expensive realtor fees and lengthy negotiations. The faster you sell the house, the sooner you can close the chapter on this part of your life.

Cost of Selling an Inherited House in Philadelphia

When you decide to sell an inherited house, it’s important to understand the costs involved. If you choose to work with a traditional realtor, you could be looking at fees around 5-6% of the sale price. For example, if the home sells for $200,000, you’ll be paying around $10,000 to $12,000 in commission fees alone. This doesn’t include any additional closing costs or repairs that might be necessary before putting the property on the market.

Selling for cash to an investor eliminates the traditional costs, but there may be some important tax implications. Visit the IRS guide to selling inherited property to better understand any tax liabilities you may incur when selling an inherited home.

Benefits of Selling for Cash:

• Quick Sale: You can close the deal within days, not months.
• No Repairs Needed: Sell the house as-is, no matter the condition.
• No Agent Fees: Save money on commission and closing costs.
• Clear and Easy Process: Cash buyers handle the paperwork and logistics.

Drawbacks of Selling for Cash:

• Potentially Lower Sale Price: Cash offers are often below market value, but the trade-off is the speed and convenience.
• Not Ideal for High-Value Properties: If the property is in great condition or has high market value, a traditional sale might be more profitable.

If you’re ready to sell quickly, click here to learn more about How to Sell an Inherited House Fast in Philadelphia, PA.

Option 2: Renting Out the Inherited House in Philadelphia

Why renting might be the best choice:

If you’re looking for a long-term investment, renting out the inherited property could provide a consistent stream of income. With the rising demand for rental properties in Philadelphia, especially in desirable neighborhoods, this could be a smart move. If the house is in a good location and doesn’t require major repairs, renting it out could be a great way to build wealth over time.

Cost of Renting an Inherited House

While renting out a house might sound appealing, it comes with its own costs. For one, you’ll need to account for maintenance expenses, repairs, property management fees, and possibly the cost of updating the home to make it more attractive to tenants. On average, property management fees in Philadelphia range from 8-10% of the monthly rental income. For example, if you rent the house for $1,500 per month, you could be paying $120-$150 in management fees each month, plus additional expenses for repairs and maintenance.

Benefits of Renting Out the House:

• Steady Income: Renting provides consistent cash flow over time.
• Property Appreciation: The value of the home may increase, giving you the potential to sell for a higher price later.
• Tax Deductions: You can deduct many expenses related to owning and managing rental property, including maintenance, repairs, and mortgage interest.

Drawbacks of Renting Out the House:

• Ongoing Maintenance: You’ll be responsible for repairs, lawn care, and tenant management.
• Tenant Risks: Not all tenants are ideal, and you may face issues with late rent payments or property damage.
• Vacancy Risks: If the house remains vacant for months, you’ll still be responsible for taxes and maintenance costs.

For many inherited homes, renting may provide a good middle ground between selling and keeping the house. However, if you’re not prepared to manage the property, it could turn into a bigger burden than expected.

Option 3: Keeping the Inherited House in Philadelphia

Why keeping might be the best choice:

If the home has sentimental value, or if you’re planning to move back into the house, keeping the property might feel like the best option. Some people want to preserve their family home and maintain a piece of their loved one’s legacy. Keeping the house can also be a good option if you’re in a stable financial situation and can afford the ongoing expenses of ownership, including maintenance, taxes, and insurance.

Costs of Keeping an Inherited House

Keeping an inherited house can be expensive. You’ll need to budget for property taxes, homeowners insurance, maintenance costs, and utilities. If the house is large or older, you might also have to make significant repairs or updates to make it livable. Depending on the home’s condition, renovation costs can range from a few thousand dollars for cosmetic updates to tens of thousands for structural repairs.

Benefits of Keeping the House:

• Sentimental Value: If the house has significant emotional value, keeping it may help preserve family memories.
• Potential Appreciation: If the area is growing or undergoing revitalization, the property could appreciate significantly over time.
• Long-Term Investment: Holding onto the property may be a good strategy for long-term wealth building.

Drawbacks of Keeping the House:

• High Ongoing Costs: The expenses of maintaining the property can be significant, especially if it requires repairs or updates.
• No Immediate Financial Benefit: You’re not able to access any money tied up in the property unless you sell it.
• Emotional Burden: Keeping a house that reminds you of a loved one can be emotionally challenging, especially if it requires significant upkeep.

In many cases, the costs and responsibilities associated with keeping an inherited home outweigh the benefits. If the house is more of a burden than a blessing, it may be worth considering selling for cash instead. For detailed financial breakdowns on property management, visit Steadily’s Property Management Costs blog.

Conclusion: Sell, Rent, or Keep? The Best Option for Your Inherited House in Philadelphia

Deciding what to do with an inherited house in Philadelphia can be overwhelming, but after considering the options—selling, renting, or keeping—the best choice for many is selling for cash. A cash sale provides the quickest and easiest solution, especially if the property requires repairs, or you simply don’t want the burden of managing a rental or maintaining the home. Selling for cash allows you to close fast, without needing to spend money on renovations, real estate agent commissions, or waiting for the right buyer.

Renting the property can be a long-term solution if you’re seeking steady income, but it comes with ongoing responsibilities like maintenance, tenant management, and potential vacancies. On the other hand, keeping the house might have emotional value, but it also carries high costs and maintenance, especially if it’s an older property.

At DI Solutions LLC, we understand the challenges you face when dealing with an inherited property. We offer fair, fast cash offers for your home, providing you with a simple and hassle-free selling process. Whether you need to sell quickly due to financial stress, inheritance tax concerns, or simply want to move on, we’re here to help. Contact DI Solutions LLC today to get a no-obligation cash offer for your inherited house.