What to Do With an Inherited House in Maryland: Sell, Rent, or Keep?

Introduction

If you’ve recently inherited a house in Maryland, chances are you’re feeling overwhelmed and uncertain about what to do next. Inheriting property can bring a host of emotions—grief, confusion, and maybe even guilt about what the “right” decision is. Beyond the emotional weight, there’s also the practical side: maintaining the property, paying taxes, and dealing with a property that you may not be ready to manage or keep. You might be asking yourself: should I sell the property quickly? Is it better to rent it out? Or should I hold on to it and keep it for the long-term?

Each option—selling, renting, or keeping—comes with its own set of challenges, costs, and benefits. And in the case of selling, it’s important to understand how selling for cash can simplify the process and relieve you of burdens you might not have anticipated. That’s why this guide will break down all the factors you need to consider before making your decision, giving you the insights needed to make the best choice for you.

By the end of this blog, you’ll understand not just the steps involved in selling an inherited house in Maryland but also the costs, timelines, and possible drawbacks of renting or keeping the property. We’ll also help you weigh the pros and cons of each option, ultimately showing you why selling to a cash buyer could be your fastest and most stress-free solution.

What to Do With an Inherited House in Maryland: Sell, Rent, or Keep?

Inheriting a house in Maryland can be a blessing, but it also comes with a set of questions and decisions that can be overwhelming. Whether you’re trying to figure out how to handle the property, what your next steps should be, or what option will best suit your situation, the goal is to make the most informed decision possible.

This guide will take you through the pros and cons of three major options when you inherit a house: selling it, renting it, or keeping it. We’ll dive into the specifics of each choice, discussing everything from the financial implications to the emotional and logistical considerations. By the end, you’ll know what’s best for your unique situation and why selling your inherited home for cash may be the most advantageous route.

Selling an Inherited House in Maryland: The Fast and Stress-Free Option

When it comes to inherited property, selling can often be the quickest and least stressful option. If you’ve inherited a house in Maryland, you may be dealing with the property from afar, facing costly repairs, or not wanting the responsibility of maintaining a house you didn’t plan on owning. Selling for cash is often the easiest way to get the property off your hands, and Maryland’s cash home buyer market offers plenty of options.

Why Sell an Inherited House? The main advantage of selling your inherited house is that you can avoid the costs and hassles of maintenance, property taxes, and repairs. For example, in Maryland, property taxes can be expensive, and maintaining an empty house can cost you thousands of dollars in repairs or upkeep every year. Additionally, selling a home for cash means no realtor fees (typically 6% of the home’s sale price), no closing costs, and no waiting for buyer financing to go through. The deal is fast, straightforward, and often done in weeks rather than months.

What Are the Costs Involved in Selling an Inherited House? While selling for cash is convenient, it’s important to keep in mind that you will likely sell the property at a discount compared to what you might get on the open market. A typical cash buyer will offer anywhere from 60% to 80% of the home’s market value, depending on factors like the property’s condition and location.

For example, if your inherited house in Maryland is worth $200,000 on the open market, a cash offer might range from $120,000 to $160,000. This may seem like a low offer, but it saves you the time, effort, and stress of listing the house, conducting repairs, and dealing with buyer contingencies. Selling for cash may also allow you to skip the probate process, depending on how the will is structured. For more information on how probate works in Maryland, you can refer to Maryland’s probate process overview.

Renting an Inherited House in Maryland: A Long-Term Commitment

Renting out an inherited property is an option many people consider, especially if they think the property could generate income. However, this route comes with its own set of challenges that you should carefully consider.

Why Rent an Inherited House? Renting your inherited home in Maryland can be a good way to generate passive income. If the house is in a desirable area with steady rental demand, this can provide long-term financial benefits. For example, if the house is worth $250,000 and rents for $1,800 per month, you could earn $21,600 annually. This may seem like an attractive option, especially if the house is in good condition.

However, renting also requires significant time and effort. You will need to find tenants, maintain the property, and manage issues like tenant complaints, late rent payments, and potential property damage. If you live out of state or are otherwise unable to manage the property yourself, you may need to hire a property manager. Property management fees typically range from 8% to 12% of the monthly rent, which could cut into your profits. Learn more about what property management entails at BiggerPockets’ guide to property management.

The Risks and Costs of Renting an Inherited Property There are several risks involved in renting out an inherited house. Maintenance costs can add up quickly, especially if the home requires major repairs. For example, plumbing issues or a leaky roof can cost thousands of dollars to fix. Additionally, you’re responsible for paying property taxes, insurance, and other fees even if the house is vacant for long periods.

Another challenge is dealing with problem tenants. According to a 2020 survey, about 30% of landlords reported having problems with tenants not paying rent on time, damaging property, or breaking the terms of the lease. Even in Maryland, where rental laws can be landlord-friendly, dealing with difficult tenants can be time-consuming and expensive.

If you’re considering renting out the property, you may want to read more on the pros and cons of keeping your inherited house in our page on How to Sell an Inherited House Fast.

Keeping an Inherited House in Maryland: The Emotional and Financial Commitment

The final option is to keep the inherited house. This might feel like the most sentimental or practical decision for some, especially if the house holds family memories or could potentially increase in value over time. However, there are both emotional and financial considerations to keep in mind.

Why Keep an Inherited House? Some people choose to keep an inherited home because of emotional ties to the property or the family history. If the home has been in the family for generations or if it’s located in a community you love, keeping the house may seem like the right choice. There’s also the potential for the property to appreciate over time, especially if it’s located in a rapidly growing area.

However, keeping the house also means committing to the long-term financial upkeep of the property. If you plan on holding onto the house as a vacation home or potential retirement property, you’ll still need to maintain it and pay taxes. In Maryland, property taxes can range from $0.11 to $1.10 per $100 of assessed value, depending on the location. For a $200,000 home, that could mean paying anywhere from $2,200 to $2,200 annually in taxes alone.

The Hidden Costs of Keeping a Property While it might seem simple to hold onto the property, keeping an inherited house in Maryland comes with hidden costs. Aside from property taxes, you also need to consider maintenance and repairs. For example, a roofing job in Maryland can cost between $5,000 to $10,000, depending on the size and condition of the roof. If the house is older, there could be additional issues such as foundation problems, outdated plumbing, or electrical upgrades that could cost thousands to repair.

Furthermore, if you are maintaining the house while it’s vacant, there’s the risk of it falling into disrepair, leading to even higher costs to fix issues that may develop over time.

What to Do If Probate Is Involved: Selling Without Going Through Probate in Maryland

If you inherit a home in Maryland but are concerned about the time-consuming probate process, you’re not alone. Many heirs face the challenge of probate, which can delay the sale and add stress to the situation. Fortunately, there are ways to avoid going through probate and still sell the inherited home.

In Maryland, it’s possible to sell an inherited home without going through probate, depending on the circumstances. You may be able to sell the property directly through a simplified process if the estate qualifies. This can be especially helpful if you want to avoid the delays that probate can cause.

If you find yourself in this situation, it’s essential to understand the specific steps involved in selling an inherited property in Maryland without undergoing the full probate process. There are options like using a small estate affidavit or transferring the deed through specific legal procedures that may allow you to skip probate and proceed with the sale more quickly.

For more detailed guidance on how to navigate the sale of an inherited home in Maryland without the probate delays, you can refer to our comprehensive guide on How to Sell an Inherited Home Without Going Through Probate in Maryland. This resource will help you understand the criteria for avoiding probate, the simplified process, and the best strategies to proceed with the sale.

Conclusion: Why Selling to Sold First Might Be Your Best Option

In conclusion, while renting and keeping an inherited property in Maryland can be good options in some cases, selling to Sold First is often the best decision for those who want a quick, easy, and hassle-free solution. With a cash sale to Sold First, you can avoid the lengthy process of listing the property, paying real estate commissions, and dealing with repairs or tenants. Plus, you can close quickly, sometimes in as little as 7-14 days, allowing you to move on with your life.

If you want to avoid the emotional and financial burden of maintaining or renting out a home, selling for cash is often the quickest, easiest solution. It’s fast, transparent, and allows you to avoid the stress of managing a property you may not want or need.

If you’re ready to sell your inherited house in Maryland, contact us today. We can help you get the best offer and close on your schedule, making the entire process as smooth and efficient as possible. Let us take care of the details, so you can focus on what matters most.