Selling an inherited house: the steps in order

Rather read it? Here’s the whole thing.

Step 1: Authority to sell

Usually the court appoints an executor or administrator in probate, who can sign for the estate. Some homes pass without probate: through a living trust, joint ownership with survivorship, or a transfer-on-death deed. Some probate sales need court approval.

Step 2: Protect the house

• Tell the insurer it’s vacant; many policies limit coverage for empty homes.
• Keep paying the mortgage, property taxes and utilities.
• Lock up, check on it, and remove valuables.

Step 3: Agree with heirs

Put decisions in writing: whether to sell, the price, repairs and how proceeds are split. If heirs can’t agree, a court may order a sale.

Step 4: Choose how to sell

• Agent, fixed up: usually the highest price.
• Agent, as is: less work, often still a fair price.
• Cash buyer: fastest, usually lower price. Get several offers and compare with an agent’s estimate.
• Family member: document a fair price.

Taxes

Inherited property usually gets a “stepped-up” basis equal to its value at the date of death, so selling soon often means little or no capital gains tax. Get a date-of-death appraisal and ask a tax professional.

Closing safely

Use a title company or real estate attorney. Never sign over the deed outside a proper closing.