So, you have inherited a house, while this may sound exciting, the reality is less than a pleasure.
The truth, however, is that you have inherited expenses along with the house. Well-intentioned loved ones all too often leave their property in their will to beneficiaries that are already struggling to afford their monthly bills. Often based on monthly payments, examples of holding costs include insurance, property taxes, utilities, and general maintenance costs.
Perhaps you already have your dream home and have no interest in residing in the property but feel a sentimental attachment. While it is understandable, the value of sentimentality won’t pay for the reality of carrying the cost of an inherited house.
It’s easy for a seller to forget about these costs because they’re so focused on selling the property. The costs of holding will continue to accumulate which can lead to many troubles.
We’ve gathered a list of typical monthly payments to help you with a starting point. Read on to learn about all of the costs of holding onto an inherited house in Erie.
Property taxes will still be due on the property when you hold onto an inherited house in Erie. And depending on your location, you could be paying up to 6% interest per year or more right here in the City of Erie. These tax payments may or may not be a part of your monthly mortgage payment. Even if the mortgage is free and clear, annual property taxes will always be due. They will likely rise significantly because tax collectors will reassess the rate at the current market value.
Each month you’re likely to have some sort of utilities you will be responsible for paying. These could include electricity, gas, and garbage service. Here in Erie PA the average electric bill is $95, the median gas bill is $115, and the standard water bill is around $35. If you’re also paying for cable or internet service, you could be looking at utility payments above of $300/month!
Depending on the amount remaining on any mortgage, you may be responsible for mortgage insurance and property insurance while holding onto a property. While most home insurance costs in Erie are rather inexpensive, it is still another bill you will be required to pay month by month.
Assumption of Mortgage
Often, you can assume the mortgage if you hold onto an inherited house. The wording of the original contract may be the determining factor in your ability to assume the mortgage. If they had a reverse mortgage, you would need to pay the loan off to keep the property.
Should you be considering maintaining ownership of the property, it would be advisable to have a professional inspection done to understand what you are getting into fully. Depending on the length of time that the house has been vacant and the state of repair the property is in, holding onto an inherited house in Erie could become extremely expensive to maintain. Erie is an old city with many homes built in the middle 1900s. Monthly expenses for repairs on older properties can easily equal or exceed mortgage payments. This is why you often see properties in Erie sell as-is versus listing on the open market.
It is often effortless to tell which homes are vacant because the yard has become tangled and unmanaged, adding to the distressed appearance. Unless you have spare time, you will need to ensure that the yard is appropriately maintained.
Unless you have a plan for the property, holding onto an inherited house in Erie is costing you money. 717 Home Buyers will pay you a great price and close when you are ready. If you don’t feel that you can handle the emotions of going through the possessions of your loved one to clean out the property, you can leave everything in place or take what you like, 717 Home Buyers will handle the rest for you! Call 717 Home Buyers at 717-639-2164 or send us a message today!
About Josh Eberly
A native of Lancaster County, Josh’s roots run deep in his commitment to this community. He especially enjoys helping people find solutions through real estate. Josh is a seasoned investor with experience in many sides of buying and investing in real estate. Josh enjoys reading, listening to podcasts, digital marketing, and hanging out with his family. Feel free to connect with him here.