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A New Generation’s Approach: Selling, Not Keeping, Your House


Abacus Life (NASDAQ: ABL): Pioneering the Path to a Publicly Traded Life Settlement Company on NASDAQ

July 02, 2023

Losing a parent can be heartbreaking, no matter your age. Inheriting property from your parents can be both a blessing and a responsibility when it comes to deciding what to do with this family property. A rising trend involves the inheritors (kids) holding on to a beach or mountain house for a short period but selling the primary residence. But why are they putting up the "For Sale" sign right away?

1. Financial Considerations

A property may require significant financial investment in terms of maintenance, repairs, property taxes, insurance, and utilities. In case you have not heard, inflation is up and thus these costs can become a financial burden. On the other hand, if the house is sold, they can access a substantial sum of money that can be utilized for other purposes, such as paying off debts, investing, or purchasing a more practical and affordable property.

2. Practicality and Lifestyle

Another factor that influences the decision to sell is practicality and lifestyle. Inheritors may already have established homes or commitments in different locations, making it impractical to maintain multiple properties. The inherited house might be in a different city or state, making it challenging to oversee maintenance and address any issues that arise. Selling the property allows inheritors to simplify their lives, eliminating the burden of managing and maintaining a house that doesn't align with their current circumstances or lifestyle.

3. Emotional Attachment and Memories

While financial and practical considerations often drive the decision to sell, emotional factors cannot be overlooked. The inherited house may hold sentimental value and be filled with cherished memories, making it a place of emotional significance. However, for some inheritors, keeping the house can be a constant reminder of the loss of their parents. Letting go of the property allows them to move on emotionally, separate the memories from the physical space, and start a new chapter in their lives without the weight of the past.

4. Estate Taxes and Expenses

The financial implications of inheriting a property extend beyond day-to-day maintenance costs. In some cases, inheriting a house comes with significant estate taxes and legal expenses that can be burdensome. Selling the property can help cover these costs, ensuring a smoother transition and minimizing the financial strain associated with managing an inherited estate.

5. Market Conditions and Investment Opportunities

The state of the real estate market can also influence the decision to sell. If the market is experiencing a boom or favorable conditions, inheritors may see an opportunity to sell the house at a good price and maximize their returns. They can then utilize the proceeds to invest in other assets or pay down debts.

The decision to sell a parent's house is a deeply personal one, influenced by a complex web of financial, practical, and emotional factors. While some inheritors may choose to keep the property to honor their parents' memory, many others opt to sell to alleviate financial burdens, simplify their lives, and seize new opportunities. Regardless of the reasons, it's important to approach this decision with careful consideration, weighing both the practical and emotional implications, to ensure a path that aligns with the inheritors' overall well-being.

If you would like to receive more information on making smart money moves for your future, be sure to contact us today!


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About the author

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Eric Pucciarelli

Managing Director, Private CFO®

Eric Pucciarelli, MBA, CRPC
Managing Director, Private CFO™

Eric is a native of Atlanta, he graduated from Georgia Southern University with a bachelor's degree in Business Management and a Master's of Business Administration.

Eric's credentials include:

  • Series 7 (General Securities Representative);
  • Series 66 (Uniformed Combined State La;
  • Masters of Business Administration;
  • Chartered Retirement Planning Counselor;
  • Past board member of the Georgia Southern Alumni Association.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. Investor Disclosures: https://bit.ly/KF-Disclosures

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

Background and qualification information is available at FINRA's BrokerCheck website.

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Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. https://Bit.ly/KF-Disclosures

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