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Tag: Home Ownership

Should You Keep or Sell an Inherited Property?

Posted on by Hometown Development

Inheriting a house can be both a blessing and a burden. On one hand, you’ve just inherited a valuable asset that could be worth a substantial amount of money. On the other hand, you’re now responsible for a property that you may have never wanted in the first place. One of the most common decisions that people who have inherited a house have to make is whether to sell it or keep it. In this blog post, we’ll explore the pros and cons of selling an inherited house, and help you decide what to do with it.

Pros of Selling an Inherited House

  1. Liquidity: One of the biggest benefits of selling an inherited house is that you’ll have instant access to a large sum of money. If you’re inheriting a house from a loved one who has passed away, this money can help cover any funeral expenses and other bills that need to be paid.
  2. Ease of Maintenance: Inheriting a house also means inheriting its responsibilities. If you don’t live in the house or if it’s located in a different state or city, maintaining the property can be difficult and costly. By selling the house, you can free yourself from these responsibilities and the stress that comes with it.
  3. Opportunity to Invest in Other Assets: If you don’t have any specific plans for the money from the sale of the inherited house, you can consider investing it in other assets, such as stocks, bonds, or mutual funds. This can help you grow your wealth over time.

Cons of Selling an Inherited House

  1. Capital Gains Taxes: When you sell an inherited house, you’ll likely have to pay capital gains taxes. The amount of taxes you’ll owe will depend on several factors, including the value of the property and how long you’ve owned it. Before making a decision to sell, it’s important to consult with a tax professional to understand the tax implications of selling an inherited property.
  2. Emotional Attachment: If you’ve inherited a house from a loved one, the thought of selling it can be emotionally difficult. The house may have sentimental value, and selling it can feel like you’re letting go of a part of your loved one’s legacy.
  3. Potential Loss of Income: If you were planning to rent out the inherited house, selling it means that you’ll lose the rental income that you would have received.

Making a Decision

  1. Assess the Financial Situation: Before making a decision, it’s important to consider your financial situation. Do you have any outstanding debts or bills that need to be paid? Are you comfortable with the amount of taxes that you’ll owe if you sell the property?
  2. Consider the Emotional Factors: If you have an emotional attachment to the inherited house, it’s important to take this into account. Ask yourself if the emotional value of the house is worth holding on to, or if you’d be better off letting it go and using the money to invest in other assets.
  3. Consider the Location: If you’re inheriting a house that’s located in an area with a high demand for rental properties, you may want to consider keeping it as a rental property. This can provide you with a steady source of income, which can be especially useful if you have ongoing expenses or if you’re looking for a way to supplement your income. However, it’s important to understand that being a landlord comes with its own set of responsibilities and expenses. You’ll need to be prepared to handle any repairs and maintenance issues, as well as collect rent and manage any tenant-related problems.

Take Your Time: Making a decision about what to do with an inherited house is not something that should be rushed. Take the time to consider all of your options, talk to family members and friends, and weigh the pros and cons of each option. You may even want to seek the advice of a financial advisor or tax professional to ensure that you make the best decision for your situation.

In Conclusion:

Inheriting a house can be both a blessing and a burden. Selling it can provide you with immediate liquidity, ease the burden of maintenance, and provide you with the opportunity to invest in other assets. However, you’ll also have to pay capital gains taxes, face the emotional difficulty of letting go of the property, and potentially lose out on rental income. Keeping the property as a rental can provide you with a steady source of income, but you’ll also need to be prepared to handle the responsibilities that come with being a landlord. Ultimately, the decision of whether to sell or keep an inherited house will depend on your individual financial and emotional situation. Take your time, consider all of your options, and make the decision that is right for you.

How to Manage a Rental Property Long-Distance

Posted on by Hometown Development

Managing a rental property is a lot of work. As one of the most active types of investments, owning and maintaining your own income property involves a variety of tasks, including landscaping and cleaning the property, repairing problems, finding and keeping good tenants, upgrading units, collecting rent (or tracking it down if it’s not paid on time), and generally being available for tenants, contractors, and others to reach you.

— and if you are trying to figure out how to manage a rental property long-distance, or commuting back and forth, all of these tasks become even more difficult. 

How to Manage a Rental Property Long-Distance

If you’re struggling with being a long-distance landlord, you have options. You can try to make the experience easier by hiring a go-between — a management company or a reliable tenant — or you can sell the property and search for a more passive real estate investment.

Work With a Local Management Company

One way to balance how to manage a rental property from a distance is to contract out some recurring services like landscape maintenance and cleaning services, and repairs, or transfer all regular responsibilities to a management company local to the area. Management companies can handle all of the tasks you would normally manage and then pass the profits off to you — after taking out their fee, of course.

The obvious drawback is that the more services you hire, the less profit you’ll see returned. If you own a small investment property with few tenants, it might not be worth it to outsource all the labor.

Hire a Reliable Tenant

Another option is to rely on a tenant to manage your property while you’re at a distance. This works best if you only have a few tenants and they all get along well. The right tenant for this job has the time to help maintain the property and can be available to other tenants to make repairs or address requests, deal with rent issues, and answer general questions. They will also have the right people skills to listen to tenants concerns and keep you informed of any developments or problems.

The downside with this option is that your tenant may not be as dedicated to real estate management as a landlord. Sure, the bonus of decreased rent or a steady additional income may be attractive to most tenants, but they have their own life, and managing real estate might not be their long-term goal. Unless you find the ideal tenant whose highest aspiration is to maintain your property for a reasonable fee, this will be a short term solution, at best.

Also, the more tenants you have, the more difficult it is to put the responsibility on the shoulders of one person to make administrative decisions.

Even if these options help you figure out how to deal with day-to-day tasks and manage a rental property long-distance, you may still be required to commute back and forth every time there’s an issue your management company or tenant can’t handle. 

How to Sell a Rental Property Long-Distance

If managing a rental property long-distance just isn’t feasible for you anymore, it’s time to consider other options: Sell the rental property to a real estate investor and look for a more manageable property that’s local to you. Or, find a passive real estate investment and enjoy reliable long-term returns without the added effort or commute.

Sell Your Rental Property to a Real Estate Investor

Real estate investors make the ideal buyers for rental properties like yours because they are actively looking for turnkey investments. They have time, capital, and experience, and know how to manage a rental property effectively. When you sell to a real estate investor, you don’t have to waste time and money preparing the property for sale, hire a specialized Realtor, or wait for just the right buyer. Real estate investors will purchase your property in its current condition, offering you a fair cash offer for its real market value. 

They also prefer to move quickly through the sale process, so you can sell according to your timeline. If you want to get your rental property off your hands and off your mind, selling to a real estate investor is the fastest and most convenient way to accomplish that.

Find Passive Real Estate Investments

There are many types of real estate investment that don’t involve buying and selling property. Investing in a development or a real estate investment firm, for example, means you can still participate in the lucrative real estate market without doing the work of flipping homes or managing tenants. Once you’ve sold your rental property, you can begin your search for other appealing real estate investment opportunities that suit your risk level and time commitment.

Tired of managing your rental property long distance? Hometown Development can help. We purchase properties in as-is condition and can help you sell your rental property fast and hassle-free. Talk to our team for more information.

7 Key Benefits of Downsizing

Posted on by Hometown Development

If you’re considering selling your large home to move into a smaller one, there are many advantages to living a cozier life. Let’s take a look at several benefits of downsizing you may not have thought about.

#1 Increased Capital

Starting with one of the most important benefits of downsizing, when you sell a larger house to buy a smaller one, you’ll likely have money to spare which can be used to pay off debts or invest in your future. With a smaller home, you’re also likely to have a smaller monthly mortgage payment, so you can enjoy the savings and use them toward something important to you.

#2 Reduced Costs

When you downsize, you can reduce your utility costs and living expenses by living in a smaller dwelling. Not only is there less house to maintain, but you’re also saving energy to power and heat a smaller home. Reduced square footage equals a reduction in energy costs, which not only improves your carbon footprint, but means serious savings for you.

#3 A More Manageable House

Another of the benefits of downsizing to a smaller home is more time for you and your family. Smaller homes require less upkeep, which means less time stressing about when you’re going to do chores, and less time doing chores when you get around to them. When you have a smaller house to take care of, you have more time to do other things that are more important to you — time to pick up that new hobby, spend time with your family, or get out and see more of the world.

#4 More Opportunity to Travel

A larger home ties you down with upkeep, security concerns, and general stress. When you downsize, it frees up your time and energy for other pursuits, like traveling. In a smaller house, you can spend less time worrying about housework and take that road trip you’ve been dreaming about. 

#5 A Happier Family

Downsizing can lead to a happier family dynamic. Living in close quarters encourages the family to spend more time together in communal spaces like the living room and kitchen. Rather than withdrawing to their own corners of a large house, family members are forced to spend time together — for the better. Although it can take a little adjusting at first, one of the major benefits of downsizing your home is a focus on gathering the family to eat, chat, and enjoy one another’s company.

#6 Effective Budgeting

Did you know that one of the benefits of downsizing is that it can help you stick to a budget? If your resolution is to keep your spending in check, downsizing can help you do just that. With a smaller home, you will enjoy reduced monthly expenses including a more manageable mortgage payment, and lower utilities. Also, since you don’t have extra space to fill with furniture and things, you’re less likely to spend the money on things you don’t need, and more likely to get creative with storage and multipurpose items.

#7 Something New

Downsizing your home is a great way to start the next chapter of your life and try something new. Whether your kids have grown and moved out of the family house, you’ve just gone through a divorce, or you’re just ready for a new adventure, you can start your new life in a smaller home and embrace the benefits of downsizing.

Thinking about downsizing, but stressed about the prospect of preparing a home for sale? Downsize without the hassle — talk to the team at Hometown Development about your options for a simple, fast home sale.

10 Things to Know About Moving to Grand Rapids, MI.

Posted on by Hometown Development

If you’re moving to Grand Rapids, MI you may be new to West Michigan or the state, and not know what makes this place so special. Here are 10 things you should know when you’re moving to Grand Rapids, MI:

#1 Grand Rapids Offers Four Beautiful and Distinct Seasons

Grand Rapids, located in West Michigan, offers a pleasant climate with unique weather patterns. Lake Michigan, just 85 miles to the west, influences the temperature and precipitation of the region. It generates lake-effect rain and snow which converts Grand Rapids into a winter wonderland during part of the year, and tempers a warm and pleasant summer.

West Michigan is known for outdoor activities you can enjoy in each of its seasons, from gardening and golfing in the spring, to festivals and beach days on Lake Michigan, to fall hiking and apple-picking, to winter sports like sledding, skiing, and snowboarding.

#2 Grand Rapids is Walkable and Bike-Friendly

Downtown Grand Rapids has so much to offer. Great restaurants, bars, and shops are all within ten minutes’ walking distance. Many Grand Rapids residents commute by bicycle, as the city is designed to handle pedestrian and bicycle traffic safely. There are bike trails all around Grand Rapids that go along the Grand River, out to large parks, and even eventually reach the shore of Lake Michigan.

#3 Grand Rapids Has a Convenient Location

If you’re moving to Grand Rapids, MI you may have chosen this spot for its location. Living in Grand Rapids, everything that’s great about Michigan within reach. The city is full of amenities and things to do, but if you need to get out of town, there are many attractions a short drive away. The beautiful Lake Michigan is less than an hour drive away, making it easy to pack a picnic and head to the lakeshore any day to catch the sunset.

Grand Rapids is also an easy commute to the camping and outdoor recreation opportunities of Northern Michigan. It’s also a reasonable distance from the large cities of Detroit and Chicago. If you need to travel further, Grand Rapids has its own airport which is serviced by major airlines, both national and international.

#4 Grand Rapids Has a Lively Art Scene

Grand Rapids is a cultural hotspot in West Michigan, known for its galleries, art education and museums, theater and performance art, live music and concert venues. Van Andel Arena regularly hosts big names, such as Neil Diamond, Lady Gaga, and Kenny Chesney. Many other smaller venues around town feature touring artists and music groups. 

ArtPrize is an annual event in Grand Rapids that draws participants and spectators from all over Michigan and the Midwest. Participating artists create installations around Grand Rapids in late September and visitors vote for their favorites. $500,000 is awarded in prizes based on popular-vote winners in many categories.

#5 Grand Rapids Offers Many Employment Opportunities 

If you’re moving to Grand Rapids, MI in search of employment, you’ll find plenty of opportunities in this fast-growing metropolis. From working in the healthcare field, to technology and manufacturing, to jobs in the service industry, Grand Rapids has a lot to offer. The city is growing fast, so new employment opportunities are appearing all the time.

#6 Grand Rapids is Known for Great Health Care

Grand Rapids, MI is home to state-of-the-art hospitals and rehabilitation facilities. Many travel to Grand Rapids to seek out the best care at DeVos Children’s Hospital, recover at Mary Free Bed, study at MSU College of Human Medicine, or work in the Spectrum Health system.

#7 Grand Rapids is Surrounded by Beautiful Parks and Gardens

There are 1,200 acres of city-owned parks in Grand Rapids, MI. With endless opportunities to get outside and enjoy the fresh air and open spaces of the city’s parks and trails, it’s easy to stay active and healthy. Riverside Park, located north of downtown Grand Rapids, is a beautiful spot to take a walk by the river. There are also kayak and paddleboard rentals you can use on the river. 

Millennium Park has its own beach for kids to play, and also activity fields, and plenty of walking/biking trails that connect it to downtown. There are also great hiking trails at Aman Park and the Blanford Nature Center just west of town.

Meijer Gardens, located on the east side of Grand Rapids, is a beautiful 158-acre botanical garden that also contains a sculpture park, butterfly room, and amphitheater that features a regular calendar of live music during the summer. The manicured gardens with a huge variety of plants, flowers, and art, is a popular spot for weddings, family outings, and school field trips. 

#8 Grand Rapids is Known as Beer City, USA

If you’re moving to Grand Rapids, MI, you may be surprised to learn that it’s home to over 60 breweries, which earned it the title Beer City, USA. A few of the most popular spots in town are Atwater Brewery, Founders Brewing Company, and Brewery Vivant.

These establishments also craft their food menus with care to pair perfectly with unique brews for a great-tasting experience.

#9 Grand Rapids Has Excellent Shopping Opportunities

If you’re moving to Grand Rapids, MI, and need to shop for home furnishings, clothes, sporting goods, pet supplies, or anything else, you’ll find a huge variety of options around town. Downtown Grand Rapids will have a variety of boutiques and high-end stores. If you’re looking for great antique stores, explore the Eastown and Heritage Hill neighborhoods. Tanger Outlets is a short drive away and features expensive brand names for discounted prices. For everything else, visit the Woodland Mall, box stores, and car dealerships along the popular 28th Street.

#10 Grand Rapids Consists of Many Unique Neighborhoods

Outside of downtown, the neighborhoods of Grand Rapids create a sprawling, small-town feel. Each neighborhood has its own flavor, unique shops, restaurants, coffee houses, and parks. You’ll see people out and about walking with their kids and pets. If you’re moving to Grand Rapids, MI, there’s a neighborhood that’s perfect for your family. Whether it’s the historic Heritage Hill area, the more affluent East Grand Rapids, or the unique and hip Eastown, your family is sure to feel right at home in one of the many popular Grand Rapids neighborhoods.

Moving to Grand Rapids, MI? Hometown Development is always working to restore and renovate some beautiful houses in some of the most popular neighborhoods. Let us know what you’re interested in, and we can help you find the perfect home for you and your family.

5 Ways to Invest in Real Estate without Buying Property

Posted on by Hometown Development

Investing in real estate is a great way to diversify your portfolio and expand your income sources. However, not everyone is interested in buying and flipping houses to rent out, or maintaining property and tenants. If you’re looking for how to invest in real estate without the commitment or hassle of buying property, here are 5 other ways to invest in real estate that offer just as reliable returns.

#1 Invest in a Development

When you invest in a development, you help to finance a developer’s vision of a community of homes and properties. You can choose a development company that matches your tastes and investment level, but the rest of the process is relatively hands-off. You don’t have to be involved in the minute decisions of building or maintaining the development but get to enjoy the income from your equity or debt investments. These real estate companies play an important role in local economies by creating jobs, and also provide solutions to the national housing crisis.

Risk Level

Many real estate investments present a moderate level of risk. Investing in a development has great potential for good returns. As long as costs of the development stay on track and the property values and housing market remain stable, your investment will remain low-risk. You could anticipate great returns if the values of the properties increase once development is complete. To risk losing money, the market would have to decrease significantly. Therefore, the choice to invest in real estate companies that develop property is fairly safe.

#2 Invest in Real Estate Investment Companies

Real estate investment companies do the work of finding properties in need of updates, make the necessary repairs, and flip them for rental or real estate opportunities. They also work with homeowners in need to find creative solutions to missed mortgage payments, foreclosure, and other debt problems, offering them a way out that saves their credit. The homes are then given the attention they deserve and brought to showcase the best of their character and charm. Real estate investors can improve communities and help struggling homeowners into homes they can comfortably afford.

Risk Level

The risk level of investing in these real estate companies is comparable to other real estate investments in that it is also tied to fluctuating housing markets. The success of the company depends on the customer’s ability to buy a home or find a mortgage with an affordable interest rate to purchase a home. However, because the homes these companies purchase are already in established neighborhoods with nearby amenities and are priced lower than new construction homes, they tend to sell readily and provide above average returns, especially when compared to investment in another real estate company.

#3 Invest in REIT Companies

Real estate investment trusts, or REITs, are another great way to invest in real estate without finding, financing, or maintaining property. REITs own or finance income-producing real estate. Their properties can be either residential or commercial, and generate regular profits which are shared with investors through dividends. When you invest in these real estate companies, you diversify your real estate investment portfolio with passive involvement. You can either invest through stock, mutual funds or exchange-traded funds (ETFs).

Types of REITs
  • Equity REIT: publicly traded on national stock exchanges 
  • mREIT or mortgage REITs: provide initial financing for income-generating real estate
  • Public non-listed REITs: registered with the SEC (Securities and Exchange Commission) but don’t trade on national stock exchanges
  • Private REITs: not registered with the SEC and do not trade shares
Risk Level

Publicly traded REITs are less risky because investors can easily research the companies to see their financial history and stability. They also have better liquidity, making it easier to sell shares.

#4 Invest in Home Construction Companies

Investing in home construction companies is popular as the housing market climbs, and interest and mortgage rates are low. As the economy tightens and interest rates rise, however, the rate people buy and build homes slows — and so will your investment returns. This investment type is also dependent on the availability of building supplies, contractors and other resources, which, if scarce, can delay the building process and prevent you from seeing consistent returns. Investment in home construction companies is a great way to diversify your portfolio without being responsible for a home or property. You can purchase shares of home building company ETFs or invest in a specific home building company directly. However, you should be aware this type of investment is best for investors with a tolerance for some risk.

Risk Level

Investment in home construction companies presents higher risks for those seeking short term investments and quick returns, but provides more moderate risks and better returns for long-term investment. Ideally, investors should hold onto shares for at least 10 years to allow for recovery from temporary losses that can occur as home values fluctuate. Price volatility due to the constant movement of the real estate market means this type of investment is sensitive to changes in the economic conditions of the country.

#5 Join a Real Estate Crowdfunding Opportunity

Investment platforms are a relatively new way to invest in real estate without buying property directly. On these platforms, you can invest in bigger residential or commercial property deals with others, as a crowdfunding effort. This is a way to invest in real estate companies that requires some capital, but much less than buying a property yourself. You can invest in singular projects or a portfolio of projects with all types of real estate from income-producing to development properties. Be aware that, because investment and crowdfunding platforms are new, they have fewer protections than traditional investment methods. And although the online services are easy to use, apps and websites for crowdfunding may have associated fees.

Risk Level

Investing through an online crowdfunding platform means many of the opportunities to invest in real estate companies are relatively new. Therefore, there’s not a lot of financial history available to review, and investors have to sign on with a higher risk for their investment. Also, since the assets are not liquid, they are more complicated to sell. If you’re looking for a way to invest in real estate long-term, crowdfunding may work well for you. It’s best for investors who won’t need to see returns soon, and can hang onto their investments for a greater return down the road. Crowdfunding opportunities used to invest in real estate can be useful to diversify a portfolio, especially if you have many equity investments. If you’re looking for a real estate investment that can provide passive income at above-average returns, Hometown Development might just be the option for you. Talk to one of our investment experts to see how a partnership with our real estate investment company could benefit you.

Behind on Mortgage Payments? Here’s What You Can Do

Posted on by Hometown Development

I’m behind on mortgage payments. What can I do?

Getting behind on mortgage payments can be a slippery slope, and the longer you ignore the problem, the more dangerous it becomes. It can feel like you’re running out of options, treading water until a life-preserver is thrown out to you. Ultimately, you want to avoid foreclosure and losing your home, as this will put you in a difficult financial situation that it is very hard to recover from. Don’t lose hope, as you have options when it comes to catching up with your payments or getting rid of your mortgage altogether.

Make a Plan

First, you need to accept where you are and understand the importance of your next steps. Taking action early can save you a lot of headaches down the line, and leave you in better financial shape for the rest of your life. 

Second, take ownership of your financial decisions. You are in control, and what you decide will impact your future. Read through your lending agreement so you know the terms and the rights available to you as a homeowner. Make a plan that is realistic for paying your debts.

Finally, ask for help if you need it. Know that there are resources out there to help you and others like you get back on your feet. You are not the first person to struggle with a cumbersome mortgage, nor the last. There are people who specialize in this exact situation who are prepared to lend a hand and assist you in dealing with your debts and continue to move forward.

 

If you’re behind on mortgage payments, there are things you can do to help yourself. Let’s explore some of your options.

Catch up on Mortgage Payments

The quickest way to fix this problem is to catch up on payments by paying them outright in a lump sum. This will bring you up to current payments and you can go back to paying normal amounts next month. To acquire funds for this lump sum, you may consider selling assets like non-sentimental valuables or antiques. Look around your home for ways you can downsize and get rid of possessions you don’t need, like an extra television set or expensive camping gear. Every little bit you can sell will help you get closer to your goals.

Talk to Your Mortgage Lender

Another action that could help you if you’re behind on mortgage payments is to speak with your lender about possible solutions. They may be open to arranging a new repayment plan or adjusting the terms of your mortgage to help you meet more achievable monthly payments. Let’s look at a few options you can bring up with your mortgage lender.

Forbearance

Forbearance means your lender would temporarily postpone or reduce payments until you can agree on a repayment schedule. Agreeing to forbearance means your lender will not pursue foreclosure, which will give you peace of mind as you work on a plan that benefits both parties. Keep in mind that when your repayment is due, you will need to pay back all of the missed payments to bring your account current.

Reduction of the Mortgage Principal

Your lender might be open to reducing the amount you owe, or the principal of your loan. The lender might agree to this if they could recover more money through a lowered principal than they would in a foreclosure, especially if you owe more than what your home is worth.

Mortgage Refinance

Refinancing your loan means you make a completely new loan agreement with new payment amounts, interest rates, and payment schedule. It may lower your monthly payments, which could help you keep up with the schedule. You must be up to date on payments to refinance your loan or you will still need to settle the other mortgage, but it could help prevent you from falling behind on mortgage payments by making them more manageable in the future.

Selling Your Home to Pay Off the Mortgage

If you’re falling behind on mortgage payments, it can feel overwhelming when the debt stacks up month after month. If you want to get rid of your mortgage payments altogether, you may consider selling your home to pay off your debt. There are a few different ways to do this. You can sell your home in a short sale, with the help of a realtor, or sell it as-is for a quick sale.

Sell Your Home in a Short Sale 

A short sale is when you sell your home for less than you owe. You can avoid foreclosure with a short sale, but you basically start from scratch. It might be an option if you’re desperate to get out from under your debts. You have to discuss it with your lender before you can sell your home in a short sale.

Sell Your Home With a Realtor

If you choose to sell your home with a realtor, you will work with their office to prepare your home for sale. It could take months before it’s ready to be put on the market, and months more before an offer is received. Although you might be able to sell your home for a higher price with a realtor’s skilled help, their commission will slightly lower your profits — and the amount you can pay back on the mortgage. Plus, the time it takes to sell your home this way puts your further behind on mortgage payments, leaving you with a bigger debt to settle at the end of the process.

Sell Your Home As-Is for Cash.

In an as-is home sale, professional real-estate investors will give you a fair price for your home’s value. You don’t have to worry about making repairs or working with a realtor. Most importantly, you can be paid for your home sale right away. You can have your debts paid in as little as five days and move on to the next chapter of your life.

Get Some Help

If you still have questions about catching up with mortgage payments, go to a government agency like Housing and Urban Development. They have housing counselors available to guide you through the process of catching up with missed mortgage payments. Counselors can give you real answers about what to expect if you aren’t able to pay your debts as well as practical solutions to avoiding foreclosure and bankruptcy. Their advice is free, so it never hurts to ask.

You’ve already made a great first step by looking for a solution before you’re underwater. You’ve taken control of the process and are well on your way to forming a clear plan that will lead you out of mortgage debt.

Here at Hometown Development, we know it can be tough to feel like you’ll never catch up. Our team is here to help. If you’re behind on mortgage payments, we can offer you a fair cash offer for the market value of your home to help you get out from under that cumbersome mortgage. Call our office at 616-379-3090 or contact us online to learn more.

What Can I Do With Inherited Property?

Posted on by Hometown Development

If you’ve recently inherited property from a loved one, you may be wondering what to do. Whether you’ve inherited the property solely, or jointly with siblings or other family members, it can be a difficult decision to keep or sell the property, especially as you grieve the loss of your loved one. In nearly every case of inherited property, you have three basic options — keep the property, list it, or accept a cash offer. Here’s what you need to know about each:

Keep the Inherited Property To Live In or Rent

Keeping the property is a good idea if you would like to live in it, or if the property is well-suited for renters. If you’ve inherited the property on your own, this is an easy decision to make, because you’re calling all of the shots. If you and a sibling or another family member inherited the property together, you’ll have to come to an agreement together. 

For example, if you decide to live in the home, you’ll have to compensate your sibling accordingly, either by buying them out of the house or by paying them regular rent. This is a little easier to work out if you’re renting out the property — you simply split the rent equally between all owners.

If you do plan to keep the property, there are a few housekeeping items you’ll want to take care of before you or a renter officially move in:

  • Plan for property taxes to rise — If the home has been owned by the same person for quite some time, it’s likely that your property taxes will go up now that the property has transferred ownership. While this isn’t too big of a deal if you’re renting (you can just up the rent accordingly) this could be an issue if you’re planning to live in the home. 
  • Get a home inspection — Many inherited homes have been lived in and maintained by senior owners, who may not have been able to keep up with large-scale maintenance in their later years. Before you officially move in or rent out the house, it’s in your best interest to have the property inspected to ensure there are no major structural problems to be fixed.

Keeping your inherited property is a great way to move into a home that’s better suited to your family, or generate a bit of extra income by renting it out. Either way, know that you’ll have to tackle a bit of work — cleaning, making repairs, ensuring there are no necessary renovations — before anyone can move in. 

List It

If you live far from the inherited property, or if the property was left to multiple parties, you might be considering listing the home on the traditional market. This is an especially attractive option if there was no mortgage on the home because everything you make on the home will be a profit to split between you and the other inheritors. 

Listing a home on the traditional market is a good way to recoup fair shares for all of the property owners, but it will take a bit of work. Here are a few of the steps that go into listing a home on the market: 

Tidy Up the Property

First and foremost, you’ll have to clean the home out entirely to prepare it to be listed, and it’s also a good idea to get a pre-inspection done before you put the home up on the market. This will help you get on top of any big renovations or repairs, and have them completed before you list the home. 

Find a Realtor You Trust

You’ll also need to find a realtor you trust. It’s a good idea to talk to a few realtors who are familiar with the neighborhood and the local market. Choose a realtor who is invested in your property, and understands your goals for selling the home. If you live further away, you’ll be relying on your realtor to get the home sold quickly, so it’s important you choose someone you can trust. 

List the Property

Once you’ve identified and made any necessary updates or renovations, have cleaned your inherited property up, and have found a realtor, you can list the property. Remember that while listing the home traditionally can provide a number of benefits, it can also take some time. The closing process alone can take up to 90 days, and sometimes more. If there is a mortgage on the property, you and the other owners of the property will have to keep up on those payments until you officially close on the home. 

Choose a Cash Offer

Inheriting a home can be stressful, especially if you’re inheriting the property with a number of other family members, or if the home has an expensive mortgage payment or costly necessary repairs. If you and the other inheritors just aren’t sure how to keep up with the property, you might consider an all-cash offer from a trusted local real estate investor. 

This is also a good choice when you don’t live near the inherited property. When you work with a real estate investor who makes a cash offer, you don’t have to worry about:

  • Cleaning — Real estate investors purchase homes as-is, so you can take the items you want from the home, and move on quickly, without worrying about cleaning and tidying up. 
  • Renovations — Since the home is purchased as-is, the real estate investor assumes any structural problems or large-scale necessary renovations or repairs. 
  • Closing — Cash offers can be made and closed on in a matter of days, not months. If you’re worried about making mortgage payments or rising property taxes, a cash sale can help you move on from that inherited property quickly, at minimal to no expense to you or your family. 

If you’re dealing with a home that’s in disrepair, or a number of inheritors who can’t agree on the best route to go for the property, accepting an as-is cash offer is often the best option. Everyone gets a fair split of the profit, and you’re all able to walk away from the inherited property without additional expense on anyone’s part. 

Inheriting property isn’t always the gift it seems like at first. If you’ve recently inherited property you don’t have time to care for or keep, Hometown Development can help. We purchase properties in any condition, for cash. Contact us online, or give us a call at 616-379-3090 for information about a cash offer for your home.

Answers to Some of the Most Common Divorce Home Ownership Questions

Posted on by Hometown Development

Divorce is difficult for anyone. No matter what your assets or whether you have children or not, there’s no easy way to finalize a divorce. For many couples, homeownership is one of the most difficult assets to divide fairly. Not only do you have to decide what to do with the home, but you also have to keep up on mortgage payments throughout the divorce, which can get messy. If you’re going through a divorce, and aren’t sure what to do with your home, here are answers to some of the most common divorce homeownership questions: 

Should I Keep The House, or Sell?

Really, this question is at the heart of every divorce homeownership concern. Ultimately, you want to know what’s in your best interest, and in the best interest of your family — to sell, or not to sell. Unfortunately, there’s no good cut and dry answer to this question, because it depends on your specific situation. 

There are two situations where the answer is relatively easy:

    • You own the home jointly and are looking for the simplest solution. 
      • If you and your ex own the home jointly and are both on the mortgage, selling is certainly the easiest option. Selling the home means you can get rid of the mortgage, and split any profits right down the middle. 
      • There’s no worry about who keeps the house and how to quantify that asset. The sale quantifies it for you, and neither of you has to worry about any long-lasting implications on your credit. 
    • One spouse came into the marriage with the home. 
      • If you or your spouse purchased the home before you entered into the relationship, it is likely that they will have rights to the home, unless the other spouse was added to the deed or mortgage later on. 
      • In this situation, that spouse who entered into the marriage with possession of the home is likely to keep that asset. It’s up to them to make the sell vs. keep decision. 

If neither of these situations applies to you, then solving the divorce homeownership challenge can be a bit more complicated. We’ll get to some of those situations next. 

Can I Buy Out My Spouse?

There are a number of situations where assuming full ownership of the home from your spouse makes sense, like keeping children in the same school district and home, or when market conditions aren’t right yet to sell. 

The only way you can buy out your spouse is if you make enough money to qualify for the mortgage alone. In most cases, spouses qualify for mortgage loans together, so it’s not necessary to make so much money on your own. But, if you’re hoping to buy out your spouse and assume full ownership of the home, you’ll have to prove to your lender that you can afford the monthly mortgage payments. Unfortunately, this can be tough amidst divorce proceedings that split your assets and savings in half. 

What Do We Do About the Mortgage?

No matter what you decide — to sell the home, assume full ownership, or relinquish the home to your spouse, it’s important to adjust the mortgage accordingly. If you no longer live in the house, and have been taken off the deed, but are still listed on the mortgage, any missed payments will continue to affect your credit. 

This is one of the reasons many divorced couples opt to sell the home. It’s difficult to be taken off a mortgage once you’re on it, and it’s also stressful to be named on a mortgage that you don’t have control of. Selling the home ensures that you pay that mortgage off, preserving your credit to make large purchases in the future. 

If you do opt to relinquish the home to your spouse, make sure your name is taken off the mortgage, if possible. This way, you don’t have to worry about their future finances affecting your credit. That leads us into our next question:

How Will This Affect My Ability To Purchase a New Home?

How you choose to solve the challenge of divorce homeownership will dictate your ability to purchase a new home. Divorce is expensive and stressful. It’s easy to forget about things like mortgage payments during divorce proceedings, especially when it’s not yet clear who will own the home, and who is responsible for the mortgage payments. For that reason, many couples start to miss mortgage payments, which can seriously affect your ability to purchase a new home. 

Missed payments will affect your credit, and if your loan goes into default while you’re sorting out your divorce, you could face serious repercussions in your ability to purchase a new home down the road. Some lenders may refuse to offer you a loan, even if it’s not your fault that mortgage payments weren’t made. 

If a lengthy divorce process is making it difficult to keep up with mortgage payments, an as-is, cash sale could help. Hometown Development purchases properties in any condition, with no need for cleaning or repairs. Simply contact us, get a fair cash offer, and move on from your home with no worries of disrupting your credit or further disputes over divorce homeownership.  For more information about our process or for a personalized offer, give us a call at 616-379-3090 or contact us online at your convenience.

Licensed Contractor

Licensed Builder
Licensed Real Estate Agent

All closings performed by Bell Title
Meghan Vandenhout 616-942-8955

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