Inheriting a home can be both a blessing and a challenge.

Along with the emotions it can dredge up, there’s also the practical considerations of what to do with it next. Many may opt to sell, but that process can be more complex than with a typical home sale with the right approach and guidance, though, you can manage it efficiently.

Understand the legalities

One of the first steps to selling an inherited home is verifying that you have legal ownership and comprehending to what extent. For instance, if you are the sole heir, the house is entirely your responsibility and yours do to what you wish with. However, if it has been left to you and other family members, such as your siblings, everyone will need to agree on the sale and sign off on the legal documents. You’ll also want to check that there are no outstanding liens, or “a legal claim on assets that allows the holder to obtain access to the property if debts are not paid,” as defined by Investopedia. And If the home is in probate (the legal process of settling the estate), the court will need to approve the sale before you proceed.
It’s a good idea to consult with an estate attorney, who can help you navigate these various legal complexities and ensure everything that is in order so you can move forward with the sale without any major complications

Assess the property’s value

Before listing the home, you’ll need to determine its fair market value. To do so, you can conduct your own research into the trends and prices of your neighborhood, or connect with a local real estate agent for a comparative market analysis (CMA) based on similar properties in the area. In some cases, a formal appraisal may be required, such as for tax purposes or if multiple heirs are involved. This step will help you set a realistic price that attracts buyers while still allowing you to sell the home for what it’s worth.

Review the tax implications

Selling an inherited property will generally require you to pay capital gains taxes. The good news, though, is that the tax basis for the property is typically “stepped up” to its market value at the time of the original owner’s death rather than the price that person paid to purchase it. This means you may not have to pay capital gains taxes, even if you sell for more than the stepped-up value.

Consider consulting with a tax advisor to understand all your potential tax obligations and plan accordingly. This may be particularly valuable if the property has appreciated significantly since the original owner passed away, which may create more nuance.

Prepare the home for sale

Inherited homes often require updates or repairs, especially if they haven’t been maintained for some time. Whether you choose to sell the home “as is” or invest in improvements, it’s in your best interest to prepare the property to make it appealing to buyers. At a minimum, a deep clean and some staging can help showcase its potential. And if it is outdated, cost-effective upgrades like fresh paint or new landscaping can improve its curb appeal without breaking the bank.

Work through any emotions

Even if you’re eager to move forward, selling a home that has been in the family for years can be emotionally difficult. It’s natural to feel a strong attachment to the property, and you may need time to process all the memories and feelings wrapped up in it. Can be especially difficult if multiple inheritors involved, all of whom maybe experiencing different emotions and having different viewpoints on how to handle the sale as a result.

Keep communication open and professional so you can help support each other and come to a decision that benefits everyone. As a neutral party, a trusted real estate agent can be a valuable asset in this, helping to ease tension and make sure that everyone feels their voice is heard.

Selling an inherited home is a multifaceted process, blending financial, legal, and emotional considerations. considerations. By taking the right steps, you can make this process smoother, ensuring that the property’s sale honors the legacy of the previous owner while meeting the needs of you and your family. Don’t hesitate to seek professional guidance from real estate agents, attorneys, and tax advisors to help you make the best decisions for your unique situation.