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Inherited home - keep or sell?
I inherited my grandparents home. I am a poor 27 year old. The mortgage is paid off but i know there are other expenses. It is a time capsule. Do i keep it or sell it?
Asked By Jimmy O | Greensburg, IN | 41 views | Tips Advice | Updated 2 days ago
Answers (13)
Chris Nevada
Nevada Real Estate Group - LPT Realty
If you’re cash‑tight at 27, the safest move is usually to run the numbers first and only keep the house if you can truly afford the ongoing costs, not just the “free” mortgage. A paid‑off inherited home still comes with property taxes, insurance, utilities, and maintenance that can easily add up to many thousands per year, especially on an older “time capsule” house that will eventually need big‑ticket repairs like roof, HVAC, and plumbing. Keeping it can be great if (a) you can live there cheaply instead of renting and (b) the total yearly cost is comfortably below what you’d otherwise pay for housing; selling can be smarter if you’d be stretching just to cover taxes, insurance, and repairs or if you need the cash to stabilize your finances or fund other goals. A simple way to decide: estimate annual costs (taxes, insurance, average repairs, utilities), compare that to what you’d pay in rent, and if you can’t cover that number without stress, leaning toward selling—possibly after minimal clean‑up to boost value—is usually the better call.
- 1 day ago
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Jessica Juel
Arterra Luxe
That’s a great position to be in, even if it feels overwhelming right now. A paid-off home can be a huge asset, but the right decision usually comes down to the ongoing costs, needed repairs, taxes, insurance, and whether the home fits your lifestyle and budget.
Some people keep an inherited home because it gives them stable housing or rental income. Others decide selling makes more sense so they can use the equity to pay off debt, invest, or buy something that better fits their situation. Looking at the condition of the home and the monthly carrying costs usually makes the answer a lot clearer.
Some people keep an inherited home because it gives them stable housing or rental income. Others decide selling makes more sense so they can use the equity to pay off debt, invest, or buy something that better fits their situation. Looking at the condition of the home and the monthly carrying costs usually makes the answer a lot clearer.
- 2 days ago
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Bonnie Irby
Bonnie Irby Berkshire Hathaway Homeservices NW Real Estate
Hi Jimmy,
If you don't have resources to enhance or upgrade the home or manage the costs of home ownership in general, it may be best to sell the home.
Have you established the market value with a professional opinion? Most often a market value is needed to determine what your basis from a tax standpoint. Do you have an attorney helping you with their estate?
Costs to sell depend on your state and municipality. In some states there is an excise tax (like a sales tax on home sales). Title and escrow fees are typical along with commissions. Be sure that you know what fair market value is realistically.
An expert Realtor is usually a wonderful help in determining all of the costs and steps involved in your area along with expectations for sales price and whether the home is financeable.
Choose an agent that has years of experience, great insight and skilled negotiation abilities. You want someone who can lead, advocate and help you achieve the best outcome.
If you don't have resources to enhance or upgrade the home or manage the costs of home ownership in general, it may be best to sell the home.
Have you established the market value with a professional opinion? Most often a market value is needed to determine what your basis from a tax standpoint. Do you have an attorney helping you with their estate?
Costs to sell depend on your state and municipality. In some states there is an excise tax (like a sales tax on home sales). Title and escrow fees are typical along with commissions. Be sure that you know what fair market value is realistically.
An expert Realtor is usually a wonderful help in determining all of the costs and steps involved in your area along with expectations for sales price and whether the home is financeable.
Choose an agent that has years of experience, great insight and skilled negotiation abilities. You want someone who can lead, advocate and help you achieve the best outcome.
- 2 days ago
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Tricia Jacobs
REMAX Gateway
First, I am so sorry for the loss of your grandparents, but what an incredible gift they have left you. Being 27 and having a home with a paid-off mortgage is a position most people work decades to achieve. Even if you feel "poor" in cash right now, you are "asset rich."
Before you make any permanent decisions, you need to treat this like a business evaluation. You want to make an informed decision based on data, not just the stress of the "time capsule" wallpaper!
Here is the roadmap I suggest:
Calculate the "True Cost" of Ownership: Even without a mortgage, you have taxes, insurance, utilities, and maintenance. List every single one of those out and then pad that number by at least 10% for the incidentals that always pop up with older homes.
Find Out the Home's Value: Connect with a full-time, local real estate professional to get a true Valuation. You need to know exactly what is sitting in that "bank account" (the house) before you decide to close it.
Explore Income Options: If the expenses feel too high for your current income, could you rent out a room to a friend? Or, could you keep it as a full rental property? A local agent can help you figure out what the monthly rent would be, which might more than cover those taxes and insurance.
Think Long-Term: Real estate is one of the best ways to build generational wealth because it typically increases in value and equity over time. If you sell now, that "nest egg" is gone. If you keep it, you have a place to live or an asset that grows while you sleep.
My Advice: Interview 2–3 local agents who can walk through the home with you. Ask them: "If I keep this as a rental, what could I get?" and "If I sell it 'as-is,' what is my net profit?" Having those two numbers in front of you will allow you to make the decision that is right for your long-term goals.
I recently walked through this exact scenario with a 23-year-old client who inherited her grandfather's home. It’s a big weight to carry, but with the right plan, it becomes a ladder to your future. I have some great professional connections in Indiana and would be happy to send you a couple of top-tier agents to interview.
Feel free to reach out if you’d like those recommendations!
Tricia Jacobs
Managing Broker/REALTOR®
Before you make any permanent decisions, you need to treat this like a business evaluation. You want to make an informed decision based on data, not just the stress of the "time capsule" wallpaper!
Here is the roadmap I suggest:
Calculate the "True Cost" of Ownership: Even without a mortgage, you have taxes, insurance, utilities, and maintenance. List every single one of those out and then pad that number by at least 10% for the incidentals that always pop up with older homes.
Find Out the Home's Value: Connect with a full-time, local real estate professional to get a true Valuation. You need to know exactly what is sitting in that "bank account" (the house) before you decide to close it.
Explore Income Options: If the expenses feel too high for your current income, could you rent out a room to a friend? Or, could you keep it as a full rental property? A local agent can help you figure out what the monthly rent would be, which might more than cover those taxes and insurance.
Think Long-Term: Real estate is one of the best ways to build generational wealth because it typically increases in value and equity over time. If you sell now, that "nest egg" is gone. If you keep it, you have a place to live or an asset that grows while you sleep.
My Advice: Interview 2–3 local agents who can walk through the home with you. Ask them: "If I keep this as a rental, what could I get?" and "If I sell it 'as-is,' what is my net profit?" Having those two numbers in front of you will allow you to make the decision that is right for your long-term goals.
I recently walked through this exact scenario with a 23-year-old client who inherited her grandfather's home. It’s a big weight to carry, but with the right plan, it becomes a ladder to your future. I have some great professional connections in Indiana and would be happy to send you a couple of top-tier agents to interview.
Feel free to reach out if you’d like those recommendations!
Tricia Jacobs
Managing Broker/REALTOR®
- 21 hours ago
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Iryna Swallow
Iryna Swallow, Utah REALTOR® | Fathom Realty Utah
First, I’m sorry for your loss. Inheriting a home can bring a lot of mixed emotions, and it’s also a big financial decision—especially if you weren’t expecting to become a homeowner so early.
There isn’t one right answer, but there are a few important things to look at before deciding whether keeping or selling the home makes the most sense.
1. Understand the real cost of keeping the home
Even when the mortgage is paid off, there are still ongoing costs such as property taxes, insurance, utilities, maintenance, and possible repairs—especially if the home is older. It helps to estimate what the monthly and yearly costs would realistically be.
2. Consider whether the home fits your lifestyle right now
Ask yourself whether living in the home works for your current stage of life. Location, commute, size of the home, and upkeep responsibilities all matter. Sometimes a house that made sense for previous generations may not match your needs today.
3. Evaluate the property’s condition
If the home is a “time capsule,” it may need updates or repairs over time. That doesn’t necessarily mean you must renovate everything immediately, but it’s important to understand what maintenance might be required in the coming years.
4. Look at the financial opportunity
Because the mortgage is paid off, the home likely represents a significant asset. Some people choose to keep the property and live in it, rent it out for income, or sell it and use the proceeds to support other financial goals such as paying off debt, investing, or purchasing a different home.
5. Talk with professionals before deciding
It can be helpful to speak with a real estate professional and possibly a tax professional to understand the home’s market value, potential selling costs, and any tax considerations related to inherited property.
For many people, the decision ultimately comes down to whether the home supports their financial stability and lifestyle moving forward. Taking the time to understand the numbers and your options can make the decision much clearer.
There isn’t one right answer, but there are a few important things to look at before deciding whether keeping or selling the home makes the most sense.
1. Understand the real cost of keeping the home
Even when the mortgage is paid off, there are still ongoing costs such as property taxes, insurance, utilities, maintenance, and possible repairs—especially if the home is older. It helps to estimate what the monthly and yearly costs would realistically be.
2. Consider whether the home fits your lifestyle right now
Ask yourself whether living in the home works for your current stage of life. Location, commute, size of the home, and upkeep responsibilities all matter. Sometimes a house that made sense for previous generations may not match your needs today.
3. Evaluate the property’s condition
If the home is a “time capsule,” it may need updates or repairs over time. That doesn’t necessarily mean you must renovate everything immediately, but it’s important to understand what maintenance might be required in the coming years.
4. Look at the financial opportunity
Because the mortgage is paid off, the home likely represents a significant asset. Some people choose to keep the property and live in it, rent it out for income, or sell it and use the proceeds to support other financial goals such as paying off debt, investing, or purchasing a different home.
5. Talk with professionals before deciding
It can be helpful to speak with a real estate professional and possibly a tax professional to understand the home’s market value, potential selling costs, and any tax considerations related to inherited property.
For many people, the decision ultimately comes down to whether the home supports their financial stability and lifestyle moving forward. Taking the time to understand the numbers and your options can make the decision much clearer.
- 1 day ago
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Christi Day
Exit Realty Southen Select
Honestly, having a paid-off house at 27 is a pretty big blessing. Just keep in mind that “paid off” doesn’t mean completely free, there are still property taxes, insurance, and maintenance to think about, especially if it’s an older “time capsule” home. One thing I’d consider before selling is whether it could work as a rental. If the area supports decent rent and the repairs aren’t overwhelming, it could bring in monthly income while the property continues to gain value over time. Of course, being a landlord isn’t for everyone, and if the house needs major work or you’d rather not deal with tenants, selling might make more sense. Personally, I’d at least run the numbers on rent versus expenses before deciding, because a paid-off property can sometimes become a really solid long-term asset if it’s manageable.
- 1 day ago
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Melody Bishop
eXp Realty
Jimmy,
It depends on what those other expenses are. You may want to invest a few hundred dollars in a home inspection to see if there are any serious issues. If the expenses are simply cosmetic you may want to keep it. In general, a mortgage free home where you pay only taxes and homeowners insurance is going to be much cheaper for you than rent. Additionally the home should appreciate in value over time. There's a pretty good chance that markets will get hot again. We still have a housing shortage in the country. So if you really want to sell, live in it for a while and then list when the market is better. Find a good local agent that you can trust and let them help you with the timing if you really want to sell.
It depends on what those other expenses are. You may want to invest a few hundred dollars in a home inspection to see if there are any serious issues. If the expenses are simply cosmetic you may want to keep it. In general, a mortgage free home where you pay only taxes and homeowners insurance is going to be much cheaper for you than rent. Additionally the home should appreciate in value over time. There's a pretty good chance that markets will get hot again. We still have a housing shortage in the country. So if you really want to sell, live in it for a while and then list when the market is better. Find a good local agent that you can trust and let them help you with the timing if you really want to sell.
- 2 days ago
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Will Gardner
Century 21 Morrison Realty
Jimmy, Talking with a realtor you trust who understands your situation is really important to help guide you better. My knee jerk reaction based on several assumptions would be to recommend you sell it. Here are my assumptions: (1) You don't have time, skill and/or desire to make updates. (2) The home isn't necessarily in the area you want to live, or doesn't fit your style/needs. That said, if you do have the ability to conveniently live in it and work on it slowly, you could start developing an asset. I think my fear would be you selling it and did not buying another property. I think owning property is very important to help you with financial and physical security. If you don't have anyone to help you, you don't want to make a bunch of updates that really don't end up improving the value... so be a little careful with that.
- 2 days ago
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Michelle Doerr
Doerr RealtyAR
It really depends on what you want the final outcome to be. Think about the home itself—what condition is it in? Does it need repairs or updates? Is it located in a desirable area? And how is the market performing where you live?
The property could be a valuable asset for you. However, if money is tight, selling might provide the cash flow you need right now. The question to consider is what happens once those funds are used up. Do you have other financial options available?
If you keep the home, you still have an asset that you may be able to borrow against. You could also make improvements and potentially sell it later for a higher price, or convert it into a long-term or short-term rental to create ongoing income over time.
It may be helpful to consult with an experienced real estate professional in your local market who can review the pros and cons of your specific situation and help you decide what option makes the most sense for you.
The property could be a valuable asset for you. However, if money is tight, selling might provide the cash flow you need right now. The question to consider is what happens once those funds are used up. Do you have other financial options available?
If you keep the home, you still have an asset that you may be able to borrow against. You could also make improvements and potentially sell it later for a higher price, or convert it into a long-term or short-term rental to create ongoing income over time.
It may be helpful to consult with an experienced real estate professional in your local market who can review the pros and cons of your specific situation and help you decide what option makes the most sense for you.
- 2 days ago
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Priscilla Hammond
HomeSmart
Never sell an asset that you did not have to pay any money for. Do whatever you need to do to maintain the property taxes and rent it out for rental income. If you don’t want to handle Property Management hire a real estate agent.
- 19 hours ago
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Cheryl Hilton
Keller Williams Coastal
Jimmy,
Depending on what the issues are with the home (and it would be best to assess what you are up against by having a home inspection done) but.... keeping or selling may not be your only options. If the home is structurally sound and is in a livable condition (has heat, etc.) if the issues are mostly cosmetic, you could live there, and depending on the size of the home, rent out some of the rooms so that you have a bit of an income you could use to fix it up gradually, and possibly flip the house later on for a profit. Of course there are many factors, but don't make a decision without considering all of the options you have - this does not have to be a money pit draining you. It might turn out to be just what you need to make a "poor 27 year old" a "well to do" 30 year old. :)
Depending on what the issues are with the home (and it would be best to assess what you are up against by having a home inspection done) but.... keeping or selling may not be your only options. If the home is structurally sound and is in a livable condition (has heat, etc.) if the issues are mostly cosmetic, you could live there, and depending on the size of the home, rent out some of the rooms so that you have a bit of an income you could use to fix it up gradually, and possibly flip the house later on for a profit. Of course there are many factors, but don't make a decision without considering all of the options you have - this does not have to be a money pit draining you. It might turn out to be just what you need to make a "poor 27 year old" a "well to do" 30 year old. :)
- 2 days ago
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Kurt Parkinson
Coldwell Banker Commercial Realty
Sell it, find a way to find a few investors to review and make offers. Keeping it would be cash intensive to get it ready to lease
- 2 days ago
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Deanna Peters
North Scottsdale Real Estate Advisors at Realty One Group
It makes sense to sell and you may find competing offers if you list it as an estate home. Sell as-is so you don't have to make any repairs. Complete a seller's disclosure that you have limited knowledge of the home. Highly recommend the book: The Psychology of Money by Morgan Housel. Good luck!
Deanna Peters, Realtor
North Scottsdale Real Estate Advisors @ Realty One Group
NorthScottsdale.RealEstate
Deanna Peters, Realtor
North Scottsdale Real Estate Advisors @ Realty One Group
NorthScottsdale.RealEstate
- 2 days ago
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