Selling a home that’s been in the family for years, or one you’ve inherited, comes with its own set of considerations beyond a standard Santa Monica sale. Between potential probate steps, gaps in firsthand knowledge of the property’s condition, and decisions about whether to update before listing, it’s worth approaching this kind of sale with a bit more structure than a typical transaction.
Confirm Where Things Stand Legally First
Before you can list, it’s worth confirming with a probate attorney whether the property needs to go through probate, or whether it passed through a trust or other mechanism that allows a more direct sale. This varies by individual situation, and getting this confirmed early prevents a listing timeline from being disrupted by a legal step that should have happened first.
Disclosures Without Firsthand Knowledge
California’s disclosure requirements still apply to inherited properties, but if you never lived in the home, you may genuinely not know about issues a longtime owner-occupant would. Our seller disclosure requirements guide covers the general framework; beyond that, a thorough pre-listing inspection can help surface issues you can then disclose honestly, rather than a buyer discovering them during their own inspection period.
Decades of Deferred Maintenance Can Hide
A home that’s been owned by the same family for a long time, especially one closer to the coast, may have wear that wasn’t actively addressed over the years, roofing, exterior surfaces, older electrical or plumbing systems. Getting an honest inspection before you list, rather than after an offer is in, gives you the option to disclose clearly and price accordingly instead of managing surprises mid-escrow. Our general guide to selling an inherited property covers more of the state-level mechanics.
Decide Deliberately: Update or Sell As-Is
Whether to invest in updates before selling depends on the property’s condition relative to what similar Santa Monica homes are selling for, and on the emotional and financial bandwidth available for a renovation project. Sometimes targeted work, like refreshing a kitchen or addressing an obvious deferred-maintenance item, pays for itself. Other times, pricing honestly for the home’s actual condition and letting the buyer plan their own updates is the more practical path. Our staging and renovation ROI guide can help you think through that math.
Multiple Heirs Add Their Own Layer
If the property is inherited by more than one person, getting alignment on timeline, pricing expectations, and how proceeds will be handled before listing helps avoid friction once offers start coming in. This is worth sorting out as a family conversation well before the property goes on the market.
Understand the Full Cost of Selling
Between potential probate-related costs, any pre-sale repairs, and standard transaction costs, it helps to have a realistic full picture before you commit to a listing timeline. Our cost to sell a house in California guide breaks down the general components.
Understand How Prop 19 Affects the Property Tax Basis
Since Proposition 19 took effect in California, the rules around keeping a parent’s low property tax basis on an inherited home have gotten narrower. In general, an inherited property only keeps the original assessed value if an heir moves in as their primary residence within a set window after inheriting, and even then, a value limit can trigger a partial reassessment if the home has appreciated significantly since it was last assessed. If no heir moves in, or if the property is rented out or sold, it gets reassessed to current market value.
This matters directly for a sale decision. If you’re planning to sell rather than occupy the home yourself, the property is likely getting reassessed to market value regardless, which changes the tax math compared to a scenario where a sibling might have considered moving in to preserve the old basis. It’s worth having this conversation with a tax professional or estate attorney before the family finalizes a decision to sell, since once the reassessment happens or the sale closes, that door is generally closed.
This is a genuinely case-specific area of tax law, and the details depend on exactly how and when the property was inherited. Treat this section as a reason to ask the right professional the right question early, not as a substitute for that conversation.
If you’re navigating the sale of an inherited or long-held home in Santa Monica, reach out to Efrat. She serves buyers and sellers across Los Angeles, including Santa Monica, and can help you think through the legal, financial, and practical pieces together.
