Step-by-Step Guide
How to Sell an Inherited House in California
Navigate probate, avoid costly repairs, and get a fair cash offer for your inherited property.
Inheriting a property often comes with mixed emotions and unexpected responsibilities. Whether you received the home through a trust or are working through probate, selling an inherited house requires understanding your options and the timeline involved.
MeritHomeBuyers has helped hundreds of California families sell inherited properties quickly and fairly. This guide walks you through the process step by step.
Key Takeaways
- Inherited properties get a stepped-up tax basis, reducing capital gains
- Probate can take 6-12 months, but trusts transfer immediately
- Selling as-is to a cash buyer avoids repair costs and carrying expenses
- Co-heirs must agree on the sale terms and sign closing documents
- California has simplified probate for estates under $184,500
Step-by-Step Process
Determine Ownership Status
Before you can sell, you need to understand how the property was transferred. If the property was held in a trust, transfer may be straightforward. If it requires probate, the process can take 6-12 months in California. Contact a probate attorney to confirm your situation.
Get a Property Assessment
Understand the current condition and value of the property. This includes identifying any deferred maintenance, code violations, or tenant situations. A cash buyer like MeritHomeBuyers can provide a free assessment within 24 hours.
Understand Tax Implications
Inherited properties receive a stepped-up basis, meaning your cost basis is the fair market value at the time of death, not the original purchase price. This can significantly reduce capital gains taxes when you sell. Consult a CPA for your specific situation.
Decide How to Sell
You have three main options: list with an agent (takes 3-6 months, requires repairs and showings), sell to an investor (closes in 7-14 days, as-is), or rent it out. Most inheritors choose to sell quickly to avoid carrying costs and maintenance.
Complete the Sale
Once you accept an offer, work with your escrow company and attorney to complete the transfer. Cash buyers can often close in as little as 7 days, while financed buyers may take 30-45 days. Coordinate with any co-heirs who need to sign documents.
What You'll Need
“My brother and I inherited our parents' home and had no idea where to start. MeritHomeBuyers walked us through the probate timeline, bought the house as-is, and even coordinated with our attorney. We closed in 12 days after the probate was finalized.”
Sarah M.
Inherited property from parents
Frequently Asked Questions
Can I sell an inherited house before probate is complete?
In most cases, you cannot sell until you have legal authority to do so. However, you can accept offers and begin the sales process while probate is pending. A cash buyer can hold their offer until probate clears.
What if there are multiple heirs who disagree?
All heirs with ownership interest must agree to sell and sign the closing documents. If you cannot reach agreement, you may need to petition the court for a partition sale. We recommend mediation before taking legal action.
Do I need to clean out the house before selling?
Not when selling to MeritHomeBuyers. We can buy the property with all contents included and handle the cleanout after closing. This saves you time and the expense of junk removal.
Will I owe capital gains taxes on the sale?
Thanks to the stepped-up basis, you only owe taxes on gains above the fair market value at the time of death. If you sell soon after inheriting, your tax liability is typically minimal. Consult a CPA for your specific situation.
Related Guides
Selling a House in Probate
A step-by-step guide to navigating California probate court and selling inherited real estate with court oversight.
Read GuideSelling Your House During Divorce
Navigate the complexities of selling marital property during divorce proceedings in California, including buyout options and timeline considerations.
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