Cost Of Holding Onto An Inherited House In Phoenix

Although inheriting a house might seem like a thrilling experience, it comes with additional expenses that might not be enjoyable. Many well-meaning individuals leave their property to beneficiaries who are already having difficulty covering their monthly expenses in their wills. Holding costs are expenses incurred on a monthly basis, such as insurance, property taxes, utilities, and general maintenance costs.

It is possible that you may have inherited a home that you love and cherish, but have no plans of living in it. However, sentimentality alone cannot cover the expenses of maintaining the property.

Sellers often overlook holding costs as their main focus is on selling the property. However, these costs can add up over time and cause problems. To assist you in understanding the expenses involved, we have compiled a list of typical monthly payments for holding onto an inherited house in Phoenix. Keep reading to learn more.

 

Taxes

If you inherit a house in Phoenix and decide to keep it, you will still be responsible for paying property taxes even if you don’t have a mortgage. The tax payments may not be included in your monthly mortgage payment and could be as high as 6% interest per year or more, depending on your location. Also, the amount of property taxes may go up every year as tax collectors reassess the property’s current market value.

Utilities

You will have to pay for utilities such as electricity, gas, and garbage service on a monthly basis. In Phoenix AZ, the average electric bill is $182, the median gas bill is $115, and the standard water bill is around $35. If you also have to pay for cable or internet service, your total utility payments could be more than $300 per month.

Insurance

If you still owe money on your mortgage, you may need to pay for mortgage insurance and property insurance for your property. Although home insurance costs are generally affordable in Phoenix, it is an additional expense that you will have to pay on a monthly basis.

Assumption of Mortgage

If you have inherited a house with a mortgage, you may be able to assume the mortgage depending on the terms of the original contract. However, if the mortgage was a reverse mortgage, you will need to pay off the loan to keep the property.

Maintenance

If you’re thinking about keeping the property, it’s recommended to get a professional inspection to fully understand the situation. Depending on how long the house has been empty and its current condition, owning an inherited house in Phoenix could end up being very costly to upkeep. Many homes in Phoenix were built in the mid-1900s, making it an old city. Monthly expenses for repairing these older properties can sometimes be just as high, if not higher, than mortgage payments. As a result, it’s common to see properties in Phoenix being sold as-is instead of being listed on the open market.

Yard

Vacant homes are easy to spot due to their overgrown and unkempt yards, which contribute to their dilapidated appearance. Unless you have spare time, you should make sure to maintain the yard properly.

Vacancy 

Leaving your inherited home vacant can also be a major issue if left for too long. Thieves prowl on vacant homes and will break in and cause damage to your property along with a loss of valuables throughout the house. Leaving it vacant can also allow for someone to start living there. Although Phoenix is known to be a safe area, homelessness still exists. If left unchecked, squatters may come into your abandoned home and harm your property. Avoid vacancy at all costs in order to keep your inherited home’s value at its highest.

If you don’t have a specific plan for the inherited house in Phoenix, keeping it is causing you financial loss. LRT Offers is willing to offer you a generous offer for your property and allow you to choose the closing date that works best for you. If you’re not comfortable sorting through your loved one’s belongings to clean out the property, you can leave everything as is or take what you want, and LRT Offers will take care of the rest. Contact LRT Offers today by calling 602-362-4742 or sending a message.

 

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