Be careful when buying a heritage house. The price is low and the risk is high. You need to confirm the property rights, debts and house condition.

As properties inherited through probate transactions become increasingly common in the U.S. real estate market, it’s essential for potential buyers and investors to navigate this landscape wisely. These properties, typically sold at lower prices, offer a unique opportunity to acquire real estate below market value, but they also come with their own set of risks.

To shed light on this growing trend, we spoke with experienced real estate agents. According to Sherry Li, a seasoned agent, “Not long ago, a property in my upscale neighborhood was listed for sale. It was built in 2006, had approximately 5,300 square feet of high-end finishes, and was priced at $2.1 million. In comparison, a similar home built in 2016 sold for $4.3 million just a few months earlier. The $2.1 million home was an inherited property.”

Li explained that there was no clear heir upon the original owner’s death, necessitating legal proceedings that can prolong the sale process—sometimes lasting months, or even years. “This lengthy legal process can deter potential buyers, which is why sometimes these inherited homes are sold for significantly lower prices, giving savvy buyers a chance to snag a great deal.”

However, she also acknowledged the challenges that come with purchasing these properties. “The advantages of inherited homes include lower costs, but potential buyers need to be aware that such sales often lack detailed disclosures about the property’s condition or any existing debts,” she cautioned. “Issues like unresolved heirs or potential legal disputes can arise, so thorough investigation is crucial.”

Another seasoned agent, Yuan Ligong, pointed out that many inherited properties are older, and some may have troubling histories. “It’s not uncommon for a homeowner to have passed away in the property, or even more serious incidents like homicides to have occurred. If the property is older, prospective buyers should arrange for thorough inspections to ensure all systems are safe,” he recommended.

He shared an anecdote about a low-priced inherited home he encountered during a showing. “As we were viewing the property, I noticed a dark stain on the stair carpet that seemed peculiar. I inquired with the listing agent, who awkwardly admitted, ‘This house was the scene of a recent homicide; the wife killed her husband.’ The buyer immediately decided against the purchase.”

In summary, while inherited properties can present lucrative opportunities, particularly for investors, buyers must be aware of the legal, maintenance, and personal factors that come into play. Understanding the potential risks involved in the buying process is essential, and seeking professional advice can help ensure a smooth transaction.