Inherited a Property You Don't Want? Here Are Your Options

Inheriting a property can be a blessing, but it can also become a financial burden — especially if the property is distant, needs repairs, or comes with unpaid taxes or a mortgage. Here's what you need to know about your options.

Understanding Probate

Before you can sell an inherited property, it typically needs to go through probate — the legal process that validates the will and transfers ownership. Probate timelines vary by state but generally take 6-12 months. Some states have simplified processes for smaller estates.

Option 1: Keep the Property

If the property is in good condition and the location makes sense, you may want to keep it as a rental or second home. Consider the ongoing costs: property taxes, insurance, maintenance, and any existing mortgage payments.

Option 2: List with an Agent

If the property is in good shape and you have time, listing with a real estate agent can help you get the highest price. Be prepared for repair costs, staging, commissions (5-6%), and a timeline of 60-120+ days.

Option 3: Sell for Cash As-Is

If the property needs work, is far from where you live, or you simply want to resolve the inheritance quickly, selling for cash as-is is often the simplest path. Cash buyers can close quickly, purchase properties in any condition, and handle most of the paperwork.

Tax Considerations

Inherited property receives a "stepped-up basis" for capital gains tax purposes, meaning the property's tax basis is adjusted to its fair market value at the time of the previous owner's death. This can significantly reduce your tax liability if you sell. Consult a tax professional for your specific situation.