Sell an Inherited Home: A Practical Seller’s Guide for Success

When a loved one dies, you may inherit their home. It’s hard to navigate the grief process while also trying to manage your loved one’s assets, and this gets even harder when you start a real estate transaction. Selling an inherited property is often the best decision if none of the other beneficiaries want to live there, but this isn’t always an easy process. 

Sell An Inherited Home: A Practical Seller’s Guide can help you understand the legal, financial, and emotional considerations of this action. Here’s what you need to know to navigate the real estate market with a clear head.

What Happens When You Inherit a Home

One of the main challenges of inheriting a property is that you immediately take over the responsibilities of maintaining it. This means you need to cover the mortgage, property taxes, homeowners’ association fees, utility costs, and repairs. Not everyone is ready to take on this financial burden, and it may be difficult to physically manage a property that is far away. For example, if the inherited home is in Florida, you will need to prepare the house ahead of any storms and return shortly to clean up afterward.  

Upon considering the cost and time requirements to maintain the property, you can decide whether you plan to keep, rent, or sell the home. Some people want to keep the family home in their possession because they have fond memories of it. Others want to sell the inherited property as soon as possible. 

If you are considering renting out the home, FastExpert has guides to help you understand the cost that comes with it. Learn about your options for long-term rentals and short-term rentals (like Airbnbs and VRBOs). These resources can give you a clearer picture of what to expect.  

There are also emotional elements to deciding whether to keep, rent, or sell. Some heirs might want to maintain the home while others want to sell it. All beneficiaries need to reach an agreement on what is fair. 

Legal Steps Before You Sell an Inherited House

Even if you are ready to sell an inherited property, you may need to wait for the legal system to process the death and distribute the assets. For example, the house may need to go through probate, which occurs when someone passes away without a clear will. The probate process can take anywhere from a few months to several years, depending on the assets and whether or not they are contested by potential heirs. However, if the person who passed has a clear will, the probate process might be faster or waived entirely. 

The next step is to pay off any debt of the deceased. In some cases, the house may need to be sold to pay any creditors, or other accounts might cover these costs. Once any debts are settled, the remaining assets can be distributed to the beneficiaries.     

Finally, all beneficiaries need to decide what to do with the property and how any proceeds will be divided. If there are disputes on the will, one heir doesn’t want to sell, or any joint ownership protections, it might not be possible to sell the home. It isn’t unheard of for multiple siblings to fight over an inherited property. 

The executor of the will should serve as an advisor throughout the legal process. They will let the heirs know when they can sell inherited property and when there are barriers to doing so.

Capital Gains and Estate Taxes on Selling Inherited Property

Once you clear the probate process and all other legal steps to take over an inherited property, the next task is to understand if you owe any taxes on the home. The main concerns of heirs relate to inheritance tax, federal estate tax, and capital gains tax. Here’s what you need to know about all three. 

• Inheritance tax: Only five states have an active inheritance tax, so this is only a concern if you live in Kentucky, Maryland, Nebraska, New Jersey, or Pennsylvania. This is a tax imposed on the beneficiary of the estate. 
• Estate tax: As of 2025, estate taxes are only levied if the value of assets is greater than $13,990,000. The estate taxes are also only levied on the estate’s value beyond this threshold. This means if the estate is worth $13,991,000, the taxes would only be on the last $1,000.  
• Capital gains tax: These taxes are levied when you sell the house and are only on the appreciation of the asset. For example, if the property is worth $500,000 when you inherit it, and you sell the home for $520,000, then your capital gains are $20,000. Inherited houses also follow the step-up in basis rule of adjusting the fair market value of the property to what it was worth when the loved one died, not what they paid for it originally. This also typically reduces the capital gains tax burden. 

If you are worried about owing taxes on an inherited home, contact a tax professional to review your finances and options. They can advise if you are likely to owe capital gains taxes and if there are any deductible expenses (like real estate commissions and repairs) that can lower these bills.

Preparing the Inherited Home for Sale

Once you clear the probate process and are no longer worried about any capital gains or estate taxes, you can move forward with selling an inherited house. From here, the home sale process will be similar to any other real estate transaction. A Realtor can advise you on improvements, listing prices, and potential offers. Depending on the market and state of the home, you could complete the selling process within 60 to 90 days. Here are a few steps to take. 

• Declutter and handle sentimental belongings.: This is different from a traditional home sale in that the majority of the items will not be moved from one house to the next. You may decide to contact an estate sale company to sell any personal belongings you don’t want to keep. Make sure you remove the items you want to save (like jewelry, favorite holiday decorations, and photos) before the estate sale team arrives.  
• Donate items and remove junk. You may need to remove items that were not purchased during the estate sale by yourself. Completing this task before listing can remove clutter and save time once you are preparing a primary residence for the closing date. 
• Make repairs and renovations. Prepare the home for sale just like any other listing. Hire a company to deep clean the home and evaluate if you need to remove any odors. Consider scheduling a pre-listing inspection to understand the state of the home before selling. It may need significant repairs or a price adjustment before any buyer is willing to close. 

Talk to your real estate agent to see if there is anything you need to disclose about the house beyond typical repair needs. For example, your agent may need to disclose whether your loved one died in the house.

Selling Inherited Property in Probate vs. After Probate

It is much easier to sell inherited property after it has completed the probate process, but there are instances when beneficiaries may want to sell before it is cleared. There are three common reasons for selling an inherited house during probate: 

• The will states the house should be sold. Some people do not want their heirs to maintain their home. The heirs may petition the court based on what their loved one stated. 
• There are not enough financial assets to cover the debts. Selling an inherited house is one way to liquidate assets. The executor can use the sale proceeds to pay off outstanding debts.  
• The heirs agree to sell. All heirs may agree to sell the house before it has completed probate. They may feel the fair market value is higher now than it will be once the process is complete. 

Regardless of the reason, the executor must petition the probate court on behalf of the beneficiaries. They need to submit documents highlighting the value of the home and the financial benefits of selling. The court may approve or reject the sale, or request additional information.

A lawyer or real estate specialist can advise on trying to sell a house before it completes probate.

Options to Get the Fair Market Value of an Inherited House

Once you are ready to sell an inherited property, you can decide how you want to move forward with the deal. Regardless of whether you owe capital gains tax or inheritance tax, you want to maximize the final sale price of the home. Most heirs also want to sell the house quickly, especially if the proceeds are being distributed across multiple family members. Here are a few options for selling an inherited house: 

• Listing with a real estate agent. This is one of the best options if you want to maximize the market value of the home. Experienced Realtors are comfortable working with inherited assets and navigating relationships with heirs for a smooth selling process. 
• Selling to an investor or cash buyer. This may be a good option if your priority is speed. You can close on the house within a few weeks, but you will likely get a lower price on the deal.
• Renting the property. You don’t necessarily have to sell. Instead, you can maintain the inherited property and use it to collect rental income. 

If you are selling with other heirs, spend time learning what everyone wants. While a quick sale is convenient, it might not get you what the home is worth. It might be better to list the inherited house on the market and let potential buyers bid for it.

Common Mistakes to Avoid When Selling an Inherited Home

Selling an inherited house doesn’t have to be more complicated than listing a traditional one if you know how to navigate the process. Along with working closely with the executor of the will, hire a tax professional and a real estate agent who can offer insight into potential courses of action. Furthermore, look out for these common pitfalls that people make when selling their inherited homes. 

• Not knowing what family members want. Give other heirs time to grieve and claim the personal belongings of loved ones they want to save. You don’t need to immediately hire an estate sale specialist. 
• Rushing to sell without understanding taxes. Know if you will need to pay capital gains tax or inheritance tax in your state. 
• Spending too much on unnecessary renovations. While this can lower your capital gains bill, it also reduces your profits. Too many renovations will slow the sale and might not be what buyers want anyway. 
• Choosing the wrong type of buyer for your goals. Selling to investors or cash buyers might be fast, but it might not get your home’s fair market value. Know what you want from the home sale. 

Even if you know you intend to sell the inherited property, take time to plan the sale before you act. Thinking through decisions can help you identify repairs, set a sale price, and work with buyers to close a deal everyone is happy about.

Checklist for Selling an Inherited Property

Clear documentation and planning can make it easier to sell an inherited property. While you can’t control the pace of the probate court, you can keep up with receipts that make it easier to report sale proceeds and pay taxes. Follow this checklist to stay on top of the sales process. 

• Gather legal documents. Most heirs need copies of the death certificate, deed, probate filings, and anything else related to the house.
• Understand the timeline. Probate can take several months, along with the listing and closing process, depending on the market and home. Be patient but ready to act once you are cleared. 
• Build a team to help you. Hire a licensed real estate professional, financial advisor, real estate attorney, and tax expert to guide your actions. This team can work together to help you. 
• Save all receipts. This can reduce your capital gains tax bill while making it easier to report your assets and costs.  

Finally, don’t let anyone pressure you to sell or take action without thinking through your options. Even if one heir is eager to list or market to cash buyers, you deserve time to review the pros and cons of every action before moving forward.

FastExpert Can Help Your Family Members Sell an Inherited Property

It’s okay to work through your grief while selling an inherited property. An experienced real estate agent can recognize that this is a difficult time and a task that some family members might not feel ready for. Whether you don’t know how to pay capital gains tax or aren’t sure about marketing a home, a trusted agent can help you. 

Turn to FastExpert for help finding Realtors who are experienced in probate and inherited property sales. They can simplify the process for both executors and families. Your real estate agent’s job is to help maximize value while avoiding legal or tax mistakes. Rely on someone whose professional advice you trust. Try FastExpert today.