Inheriting a hoarder house can be an incredibly overwhelming experience. This guide will give you ultimate peace of mind.
We will break down the pros, cons, and optimal next steps. As an expert in dealing with inherited properties, I have helped countless individuals turn this property burden into an opportunity.
Let’s get started!
Understand Your Available Options
It’s important to understand that inheriting a hoarder house is incredibly different from inheriting a regular property.
There are a lot more challenges that you will face with a hoarder property. These properties are often overridden with trash, products, and junk that you’ll have to declutter.
Additionally, the excess of goods can hurt the cleanliness and integrity of the structure. All of these factors together call for a major property cleanup.
The good news is that you have several options at your disposal. I want to stress that it’s essential to understand that every situation is unique, so not every option will be right for you.
By taking a look at your specific circumstances you’ll be able to craft a suitable course of action.
In the following sections, we will break down the different paths you can take to manage your new inherited property!
4 Things You Can Do with an Inherited Hoarder House
#1 Sell the House
Once you inherit a hoarder house, your first instinct may be to get rid of it, especially if it also has mortgage debt and the bank can foreclose on the house in probate.
Generally, before you can sell heir property, it must go through a probate procedure. We explain the process in detail in our article on how to sell a house in probate.
However, in some cases, you can sell your deceased parents’ house without probate.
The benefit of selling an inherited house ‘as is’ is that you can make a profit and get it off your hands.
However, selling a hoarder house in its current condition can be challenging. This is especially true if you inherited a house that needs work and are trying to sell through traditional methods.
Buyers are often turned off by how much work they have to put into the hoarded property.
While there are three different methods available for selling an inherited house that is not in hoarder condition, luckily you’re still left with one effective option that works incredibly well with hoarder properties.
If you inherited a hoarder house and want to get rid of it, you can sell it to an investor in a current condition. Many real estate investors look for houses in a bad shape to buy, rehab, and flip.
What happens when you sell a house you inherited in this condition is that an investor will make an all-cash offer on your home and close the deal quickly. This is why selling to an investor is so enticing.
There is no need for cleaning, renovations, or any hands-on upkeep before selling a deceased parent’s house that happens to be a hoarder property.
If you decide you want to sell inherited house fast for cash, real estate investors would be your ultimate buyers!
Even if a house is in probate, it can be sold to an investor. Doing so will save you time, money, and effort down the line.
Whether or not you can sell an inherited house before probate, keep in mind that you may be subject to the capital gains tax when selling inherited property.
However, in some situations, you may be able to avoid capital gains tax on an inherited house, especially if you are selling it under its market value.
#2 Clean Up the House
If you’ve just inherited a house and aren’t going to sell it, you will definitely need some assistance in getting it clean. This is usually not a DIY job, so you’ll need to hire a professional cleaning company.
A team of experts will need to sift through the clutter and clean the overall infrastructure. This is a task that can take multiple days depending on the severity of the hoarding.
Make sure to look for a company that specializes in cleaning hoarder houses. While you will have to make an upfront investment, this can transform the quality and value of your property.
Companies that specialize in hoarder homes have the expertise to remove the clutter and restore the home to an enjoyable condition.
#3 Rehab the House
If you know that you want to keep the house no matter what, another great option is to rehab the house. This is the process of completely restoring the property.
Due to years of hoarding, the property and infrastructure are likely compromised. You could spend some time modernizing the home and bringing it up to date.
While this requires time, energy and investment, it can pay off in the long run. You’ll end up having a beautiful home that can be used for years to come, whether you intend to rent or sell the inherited house.
By rehabbing the house, you’ll also increase the property value which can allow for a higher resale price down the line.
#4 Do Nothing With the House
Sometimes individuals who inherit real estate don’t have time to upkeep it. In this case, you could decide to do nothing with it.
The downfall of this option is that you will end up pouring money down the drain. You will need to keep paying property taxes, but you won’t be able to rent the property out.
No one will want to live in an unkept inherited hoarder’s house. This will leave you at a net loss.
The longer the property is left unmaintained, the more it will deteriorate. It’s important to understand that issues like water damage and mold can make a property unlivable.
To see the opportunity in the property, you’ll need to invest in it upfront.
Once it is decluttered, cleaned and restored, you’ll have the opportunity to make use of a property.
The best option is to take action as soon as possible, even if it’s a small step like hiring cleaners. This will prevent any ongoing losses over time.
Final Words
An inherited hoarder’s house presents a unique set of challenges. You may find yourself feeling confused and discouraged at first.
You may even feel frustrated at the new responsibility on your plate. On the upside, you can reevaluate the situation to see the opportunity.
There is a unique set of pros and cons for each option that I outlined above for you. Make sure to carefully assess the situation to see what is best for your particular situation.
In the end, your decision should align with your goals for the future. If you keep a positive mindset, you can turn this property into an amazing asset.
Keep in mind that if you are not the only heir to the property, you will need the other heirs to agree with your decision. If they don’t agree, you will need to buy them out.
Opting for this solution may mean you need to refinance an inherited property to buy out heirs through a probate lender.
This will be handled legally, depending on the situation. In some cases where there are multiple siblings, this is common. Keep this in mind and ensure open communication with the other heirs.
