Selling a home you’ve inherited involves a few extra layers beyond a standard sale, on top of what’s often an emotionally difficult time.
Probate May or May Not Be Required
Whether the property needs to go through probate court depends on how it was titled and whether it was held in a trust. If it was in a properly funded trust, you can often avoid probate entirely. If not, a probate sale involves court oversight and its own timeline, which typically takes longer than a standard sale.
Get a Step-Up in Basis Confirmed
Inherited property generally receives a “step-up” in cost basis to the property’s value at the date of death, which can significantly reduce capital gains tax when you sell. Confirm this with a tax professional, since it’s one of the more valuable, and most misunderstood, aspects of selling inherited property. If you end up living in the home before selling, the stepped-up basis can also stack with the federal capital gains exclusion, worth reviewing with a tax professional as part of the same conversation.
Property tax reassessment is a separate question from capital gains, and it works under its own set of rules. Our guide to Proposition 19 covers how a parent’s low assessed value can carry over to an inherited home, and what has to happen within the first year to keep it.
Multiple Heirs Need Clear Agreement First
If the property is inherited by multiple family members, get clear, ideally written agreement on the plan (sell, one person buys the others out, etc.) before you list. Disagreements that surface mid-transaction can seriously complicate or delay a sale.
The Home May Need More Work Than You Realize
Older family homes, sometimes lived in for decades, often need more updating or repair than an heir who didn’t live there day-to-day may realize. An honest assessment upfront, including whether to sell as-is versus investing in repairs, saves time later.
You Can Sell As-Is
You’re not obligated to renovate before selling. A clear-eyed conversation about pricing a property as-is versus investing in updates first is worth having early, especially if the heirs live out of the area or want a faster process.
If you’re navigating selling an inherited property, get in touch and Efrat can walk you through the process with sensitivity to what’s often a difficult time.
