Advice on selling inherited home

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oldtimegal's picture
Joined: 06/14/2011
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Advice on selling inherited home

I'm hoping that I can receive some advice from the folks on this board as I have benefited much from all of you.

I have my parent's house, who both have passed on, 2008 my mom passed away.  I have been holding on to the house since then and feel I would like to sell it now, look for another home of lesser value or hold on to the money from the sale until a year or two in which I feel the market will go down a bit more.  In the area now, the market is pretty full of short sales and foreclosures, so if something were to come up, I could purchase. 

My husband and I, mid 50s, still have a 30 year mortgage to pay on our own home and would like to sell that as well and have a debt free home to  live in.

The home we have a mortgage on is an old farmhouse. We have very nice veggie gardens/chickens, etc on 4 acres. Would purchase the same type setting with the profit of my parent's home sale.

I was pondering over putting some of the money of the sale of my parent's home into physical and some fiat in the bank a/c; not sure of the ratio just yet.  Don't want fiat in a bank over the next year or two.

Would appreciate thoughts/comments on how to handle the cash *if* we sell my parent's home. hold out for a while yet before looking for another home in which we could pay for with cash. 

Edited by admin on 11/08/2014 - 06:27
Strongsidejedi's picture
Joined: 06/14/2011
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Sell versus Lease?

Wouldn't it be better to just rent out the house and create a cash flow from the rent?

The cash flow from the rented house should be sufficient to off set your existing mortgage obligations or to create cash flow to assist in off-setting the house.

Selling the house is not a good idea in this market due to the fact that the depreciation on the home may be a tax benefit for you.

thecoloredsky's picture
Joined: 06/14/2011
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Tough decision. If you really

Tough decision. If you really like the house you are in (still paying mortgage) then it might be a good idea to lease your old parents home to someone. Of course there's a million things involved like taxes, delinquent payments by lessee, and of course depreciation of the home.

I would try to investigate how much home prices have fallen in the area where your old parents home resides. Check zillow for estimates. Maybe you can gauge how much to expect that home to depreciate in the coming year.

But apart from that, is there anything of value where the old parents home is at? Is it in a good school district or perhaps is there a highway going to be developed that blasts through the back yard?

The good thing is the home is paid off, which I would think is a home owners dream. One thing to note: I live in a growing area despite the 2008 crash. Home prices are being slashed and foreclosures exist every where. Home prices will decline further, perhaps much further even in growing areas.

Long story short, if there's no personal or sentimental value to the home, or if its not in a prime real estate area, then sell it. Take that cash as you said and buy a big house with tons of acres. I wish I was in your shoes! Good luck.

oldtimegal's picture
Joined: 06/14/2011
Hat Tips: 181
Posts: 35
Coloredsky, I am right in


I am right in yours and Ginger's neck of the woods here in NC.   As you have read, the Triangle was not hit has hard, but now our unemployment numbers are going up and I feel the Triangle will be feeling the housing decline real soon.  

My parents home is in a very nice area and the realtor mentioned that I will see about a 15% drop, maybe less.  Different areas will see different precentages of the drop in %.

My thinking is to purchase  a small house.  I would like to be able to fix problems as they occur and have done major repairs on our past homes.  Looking forward and still being able to do things, I would like to be able to get up on the roof, not need an extension ladder to work on the sides of the house, etc.  I think you under stand.

Renting?  yep, ask that of myself much.  It's just the chore of beginning the process and over seeing the rentors, etc. Probably not more trouble than putting it up on the market.  Just need to get the ole buttola in gear!

I have been on the fence for a couple of years now on what to do with this house.  Thus, my view of this group over the last year, has led me to ask those of you for advice.  Sadly, my husband thinks the economy will be turning around in a couple of years and maybe it will, be he  has not prepared for what is to come mentally, but humbly I share my view of the opposite mindset and what I am doing to prepare, PMs/gardening/canning, which has always been a part of my lifestyle...and he just follows along which is fine.  But with the mindset that all is shiny on the outside of the global economy, he doesn't see the cancer that is growing within, thus no need to be talking about this subject, so I have seeked elsewhere for guidance as, like many others, very leary/uncomfortable of the future.

But with this discomfort I have inside, I seek Him to carry me under His Wing!!  He is still on the Throne, has not and will not ever leave it.  

Ginger....LOVE your church's community garden!!

Pablo....Aquarain filters [same as Berkey, less $] on order to make a couple of home-made water filters

Shill.....thanks for currents event links.

CA Lawyer..for guidance on mortgage loans, etc.  Those exchanges were copied, pasted and filed away.

And of course, Turd.....can't thank you enough for your time/effort and to Mrs. F.  Wishing much success in the yogurt business.

Thank you to ALL for this group.  I come here daily to educate myself and keep informed.

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