You've inherited a house in the Shreveport-Bossier City area, and now you need to decide what to do with it. There are lots of factors to consider, like making the payments (if there is a mortgage), how to manage it if you live out of town, and how much work it needs to be in tip-top shape. Overall, you have several options for what to do with the home, from listing the home for sale with an agent to keeping it as a rental, with other options in between. Each option ranges in cost and difficulty, usually along a sliding scale where the easier it is, the less money you make. But let's dive in.
Before You Can Choose an Option
Before you can decide which option works best for you, you need legal possession of the property or legal authority to sell it. You should definitely consult with a Louisiana succession attorney before moving forward with these options. Most likely, you will need to have an open succession and a judgment of possession from a Caddo or Bossier Parish judge (or whichever parish the deceased lived in) to give you the right to sell. For properties with lower values, you can usually get a small succession affidavit, but, again, consult a legal professional about what's right for you and what you need to do. If there are multiple heirs, everyone with a claim to the property will need to sign off on whichever option you choose.
Within the first 30 days, here are some practical steps to take:
- Locate the will of the deceased.
- Contact an attorney.
- Change the locks. You don't know who all has a key, so it's better to control that situation.
- Keep the utilities on. It will cost you more money to keep them on, but the damage that can occur in a house that is vacant with no utilities on is likely to cost more to fix than maintaining monthly utility bills.
- Check the status of home insurance and property taxes, and ask your insurance company if a vacant home policy is right for you. Even if the home is paid off, these expenses continue.
Option 1: List it for Sale by Owner
To have the best chance of selling your house, get it in the best-looking shape possible. That means you'll need to clean out all the remaining furniture or manage an estate sale, make repairs to any systems (roof, air conditioning, water heater, etc.), clean every wall and surface, and possibly even paint or make other updates. This is going to cost you time, money, and, most likely, more stress. Then, you'll want to get great, professional photos that highlight the property, and you'll write up a description to post it for sale on Zillow, Facebook Marketplace, and anywhere else you can find. Be sure to do in-depth research on the prices of other homes in your area that have sold, and then price your home accordingly.
Once you get an interested buyer, you'll negotiate repairs, communicate with their agent (unless they are also representing themselves), and work with the bank and title company to make sure everything goes smoothly. In most cases, you can expect to pay some real estate agent fees because it's likely the buyers will be using an agent and be expecting you to pay their fees. This is, of course, negotiable, but it's something to be aware of.
In the end, your hard work is likely to pay off. You save the listing commission, but that only pays off if you price and negotiate well. On the sliding scale, this is the most work for you, but your return may be higher than the other options if you do the work well and price the home accurately.
Option 2: List it for Sale with a Real Estate Agent
The process for selling your house is pretty much the same as above, but the main difference is that the agent can help you with all the getting ready, research, photos, and listing the property to a wider audience. To work with a real estate agent in Louisiana, you will most likely need to sign an "Exclusive Right to Sell" agreement and negotiate the fee that you will pay the agent. After that, they will take care of finding the right cleaners, painters, HVAC technicians, plumbers, and photographers. In fact, they most likely have experience helping manage all those repairs and have great contacts for doing so. That will save you a lot of the headache and effort Option 1 required from you. You will still need to pay for all the repairs plus the agent's fee, but it is most likely that your home will be priced competitively, and they'll help you with the negotiations. Furthermore, they will use their experience and expertise to overcome common (or even unusual) challenges that arise on the way to the closing table, communicating with the buyer's lender and title company as necessary.
This option costs you a little more money (paying agent fees), but some data suggests that listing with an agent is also likely to help your home sell for a higher price vs. listing it by yourself. One big reason for that is the agent's access to the MLS, a dedicated, member-only service for sharing properties with all other real estate agents who are members in that area. On the sliding scale, this one is easier for you and could net you anywhere from a little bit more to a little bit less. It saves the headaches of finding contractors, negotiating with buyers, and dealing with lender and title companies.
As an alternative to the two options above, you can also list the home as-is. That will save you the headache of dealing with repairs, but you should expect a lower sales price.
Option 3: Keep it and List it for Rent or Move In
With this option, you would be keeping the home and charging rent for someone else to live in it. Ideally, you are able to charge enough rent to pay the home's mortgage. If the home is already paid off, that rent money could become a source of income for you! The property would, of course, need to be in livable condition, and making updates could increase the rent you charge.
Like listing your home for sale, there is a do-it-yourself option and a paid professional option. If you do it yourself, you won't pay any management fees, but you'll be the one collecting rent from tenants, scheduling repairs, and being responsible for finding a good tenant. If you pay a property manager, they will manage that all for you, but they'll charge a monthly fee, usually around 10% of monthly rent.
Alternatively, if the home is in good enough condition and you want to move in, that is a great option as well! If you decide to move in, you'll need to decide what to do with your current home.
Option 4: Sell it to a Cash Buyer
A cash buyer is usually a real estate investor who has experience purchasing a property, fixing it up, then either renting it out or selling it to a homeowner for profit. This route offers you the easiest option, but likely the least lucrative for you. What the cash buyer offers you is ease. They walk the property. They do their inspections. They buy the house as-is. You walk away with the money.
The cash buyer is essentially taking on all the burden of contractors, repairs, headaches, investing money, and paying agent commissions themselves. So, naturally, that means they won't pay as much as a buyer who wants to buy a home that you've invested time and money into. So, on the sliding scale, this one is on the far end of "easy," but that comes with a cost.
The good news is you don't have to go about all this on your own. We can show you what your options look like and then you decide which one to pursue.
How to Decide Which Option is Right for You
Which option is best for you can vary depending on many factors. Some of those are included below:
- What condition is the home in? If it's in great condition, your best option might be paying a little bit of money to get it cleaned and listed with a real estate agent. If it's in rough condition, maybe your best option is finding a cash buyer.
- What is your timeline? If the home has a mortgage that you inherited and you can't afford to make the payments, you may need to act quickly so it doesn't end up in foreclosure. In this case, a cash buyer might make the most sense. If it's paid off, you have some more time to think about and explore your options, but meeting with various professionals in the field is probably a good idea.
- How much money do you want to make, and how much of your time is it worth? If you have time, energy, and resources to manage the repairs and selling and negotiating yourself, those DIY options are probably best for you. If you can't possibly fit more into your schedule, working with a professional real estate agent, property manager, or cash buyer might be best.
What A&M Homes Has to Offer
At A&M Homes, we can actually help you with many of these options. We have a licensed real estate agent in-house who can help you list it for sale. We are cash buyers who can close quickly and manage all the stress for you. We can even consult with you on how to best prepare the property for sale. We'll show you both numbers side by side (our cash offer and a realistic net from listing), so you can compare.
If you've got a home you inherited and want help dealing with it and choosing which option is best for you, reach out to us. You can fill out a form at amhomes.us.com, message us on Facebook, or call/text us at 318-218-8762. We'll schedule a walkthrough at your convenience and help you decide, even offering a cash offer on-site.
Our in-house real estate agent:
Trey Aker Shelly Wagner and Associates + JPAR Real Estate 719-684-6758 Licensed by LREC Each office is independently owned and operated