Inheriting a house may initially appear thrilling, yet the truth of the matter can be far more complicated.
Although inheriting a property may seem like you’ve been given the world, it is crucial to be aware of the monthly holding expenses that come with owning a home. This includes insurance payments, taxes, utilities and upkeep costs – all essential requirements for keeping your newly inherited house in good condition. Unfortunately, these bills can often become an overwhelming burden on those who are already struggling financially when they receive their newfound residence through a loved one’s will.
Although you may have an emotional connection to a property, the financial burden of maintaining an inherited home can be overwhelming. Therefore, it is essential to understand that sentimentality alone won’t cover the cost associated with owning your dream home.
As sellers often become so preoccupied with the sale of a property, they can easily overlook any ongoing expenses that might arise. Such costs have the potential to build up and cause significant issues over time if left unchecked. To help provide some direction in this regard, we’ve assembled a list of common monthly payments associated with owning an inherited house in Baltimore. Keep reading to discover all the essential details!
Taxes
If you inherit a property in Baltimore, the associated property taxes will remain your responsibility. Furthermore, depending on where it’s situated, you could face interest rates as high as 6%, a hefty expense! So bear this cost in mind when deciding whether to keep or sell an inherited house here in The City of Baltimore. When it comes to taxes, you may be required to pay them as part of your mortgage payments or not. Even if the loan is paid off in full, property tax will still need to be remitted yearly and could likely increase due to a reassessment of the current market value by tax collectors.
Utilities
Every month, it’s essential to set aside money that you’ll need for utility services. This can include electricity, gas and even waste disposal services. Here in Baltimore MD the average electric bill is $105, the median gas bill is $125, and the standard water bill is around $40. If you’re also paying for cable or internet service, you could be looking at utility payments of over $300/month!
Insurance
If you still have a mortgage balance, you will need to pay for both mortgage insurance and property insurance. Although most home insurance costs in Baltimore are relatively reasonable, it’s an additional bill that can add up over time. Make sure to factor this into your budget plan when evaluating whether or not holding onto a property is worth it.
Assumption of Mortgage
When you inherit a house, it may be possible for you to assume the mortgage as long as its terms permit. If the property was subject to a reverse mortgage, however, you would need to settle that loan in order to keep possession of it. The language of the original contract will ultimately decide your ability here.
Maintenance
If you’re contemplating owning the property, it would be wise to hire a professional inspector for an accurate assessment of what you are entering. Depending on how long the house has been unoccupied and its condition, holding onto an inherited Baltimore home could become very costly to maintain. With many homes in Baltimore built during the mid-1900s and beyond, it is critical that homeowners understand precisely what they are taking on before making any commitments. With the regular repair costs for older properties often surpassing mortgage payments, it is not uncommon to see Baltimore homes selling as-is instead of participating in the open market.
Yard
It’s usually quite easy to tell when a home is vacant due to the gardens being overgrown and neglected, giving it an unkempt look. Therefore, unless you have time on your hands, you must make sure that any yard-work is done regularly in order to keep up appearances.Unless you have a plan for the property, holding onto an inherited house in Baltimore is costing you money. Property Pro Solutions will pay you a fair market price and close when you are ready. Going through the possessions of a loved one can be an emotionally draining task, so if it’s too much for you to bear, don’t worry! You can take what you want from the property and leave everything else in place. Property Pro Solutions will handle the rest with ease! Call Property Pro Solutions at 443-775-2768 or send us a message today!