How to Sell an Inherited House Fast in 2025

Can Inherited Property Be Sold?

Yes, inherited property can be sold, just like any home or property you own. However, the process may involve several legal steps and financial considerations before you can move forward with a sale.

When a home is inherited, the property often must go through probate (the legal process for transferring ownership) if it wasn’t transferred through a living trust or a transfer on death deed. Probate can take time and be expensive. If the property is part of a small estate, it may avoid probate, but real estate typically requires it.

Sometimes with inherited properties, there may be judgments or liens against the property that would still have to be paid upon the sale. Usually this is not known until the property is going through the title process, which does not begin until the property is under a written agreement to sell. In those cases, My Tennessee Home Solution will do everything in its power to contact the originator of those judgments and liens and try to negotiate the balance down to help assist the heirs.

Key Considerations Before Selling:

• Mortgage and Debts: If there’s an outstanding mortgage on the property, you’ll need to address it before selling. Any remaining debts or liens attached to the property will also need to be settled.
• Repairs and Maintenance: Many inherited homes require repairs before they’re ready for sale, especially if the previous owner didn’t keep up with regular maintenance.

What Are Your Options with Inherited Property?

Once you inherit a property, you have three major choices. These include selling the house, renting it out, or keeping it for yourself.

1. Selling an Inherited House
Selling may be the most straightforward option, but there are financial considerations to keep in mind:

• Capital Gains Tax: If the home’s value has appreciated, you may owe capital gains tax on the profit when you sell. However, you can use the property’s stepped-up basis—the market value at the time of the previous owner’s death—to reduce potential taxes.
• Estate Liabilities: If the house has debts or liens, these must be settled before a sale can take place.

You have two options for selling your property:

• Traditional Method: You could go the traditional route and sell through a real estate agent, which would include getting the house ready for showings, open houses, negotiations, concessions, agent commissions, and usually a lengthy timeline for the sale to be completed.
• Cash Home Buying Company: You could go through a more streamlined, transparent, and simplified process with My Tennessee Home Solution and receive a fair cash offer to buy the property as-is and not pay any fees or commissions. You could even leave everything in the house behind that you did not want.

2. Keeping an Inherited Property
You may decide to keep the home, either to live in it or to use it as a second home. In this case, you’ll need to take on regular expenses, including:

• Property Taxes
• Maintenance and Repairs
• Insurance

If you’re keeping the property, you may be able to avoid capital gains taxes if you live in the home for a certain number of years before selling. For some, these home-owner costs can be burdensome and it is why most people do not keep inherited houses. If you have inherited a property that you want to sell fast, contact My Tennessee Home Solution. We guarantee a close regardless of the state of your home and pay upfront in cash. Give our friendly local professionals a call to learn how we can help.

3. Leasing Out an Inherited Property
Leasing the inherited property can generate passive income, which may help offset property taxes, maintenance, and other costs. The main things to keep in mind if renting the house would be getting a tenant, screening the tenant, ensuring the house is rent ready, or even working with a property management company. If you decide to work with a property management company, then ensure you understand their guidelines and policies around maintenance, evictions, and their fees.

However, this option may require a significant amount of preparation:

• Landlord Insurance: You’ll likely need to obtain landlord coverage if renting the home.
• Repairs: Be prepared for maintenance, which is part of the responsibility of being a landlord.
• Tracking Finanicals: Ensure you run the numbers and keep track of the financials to make sure the property cash flows and does not end up costing you money

Selling an Inherited Property with Family Members

It may be more difficult to sell the property in the future if you inherit it along with your siblings or other family members, but it is still possible. My Tennessee Home Solution has worked with estates that included over 20 heirs before, so there is no situation too complex regarding inherited property for our team.

When there are several owners, deciding how to move forward is simplest when everyone is in agreement. Planning and communication are essential since there will be a lot of tasks that must be completed prior to selling. Cleaning out the entire house will be necessary, and disposing of a loved one’s belongings might be challenging in more ways than one.

One owner acting as the sale’s logistics might streamline the procedure. Otherwise, if everyone wants to be engaged, standard tasks in the home selling process such as selecting and engaging with the right buyer, organizing showings, and scheduling inspections, might require a lot of time and effort. By selling off-market to a Team like My Tennessee Home Solution a lot of these hassles can be avoided.

Key steps when selling with family:

• Agreement: All heirs need to agree on the sale. If someone doesn’t want to sell, the majority of the heirs can initiate a legal partition action to move the sale forward.
• Managing Personal Belongings: Before selling, you’ll likely need to clear out personal items from the property. This may require coordination among family members to ensure everything is handled respectfully and efficiently.

Inherited Property Taxes: What You Need to Know

When it comes to taxes on inherited property, there are a few key things to understand:

1. Inheritance Tax
While there is no national inheritance tax, certain states impose taxes on inherited property. States like Kentucky, Maryland, and Pennsylvania may tax you based on the value of the property you inherit. The tax rate can vary, and exemptions are often available for spouses or direct descendants.

2. Gift Tax
If you received the property as a gift before the owner passed away, it’s subject to gift tax rules. However, most people won’t be required to pay the gift tax unless the gift exceeds certain thresholds.

3. Property Tax
While there is no federal estate tax on inherited property unless the estate is valued above $12.06 million, property taxes are an ongoing responsibility. These taxes can vary based on the location and value of the property.

How to Sell an Inherited House Fast

Once you decide to sell your inherited house, here are the steps you’ll need to follow:

1. Determine the Home Transfer’s Status
The way the property is transferred can affect the process:

• Deed of Transfer on Death
  If the loved one was prepared and made a transfer on death deed, sometimes known as a beneficiary deed, probate may be avoided. The house is yours if you inherited it in this manner, and you can eventually sell it.

• Living Trust
  Choosing a living trust can be a more simple option than its alternatives. This enables a smooth transition and often evades tax obligations. A trust is a formal legal arrangement that specifies who will oversee the sale of an inherited home so that siblings and other heirs can divide the proceeds.
• Probate
  If your beloved one doesn’t have a valid will, probate will often be necessary. In certain situations, a court takes into account the deceased person’s best interests. They consider all the potential claimants to the house and personal property and attempt to arrange everything fairly.

Before you collect an inheritance, they ensure that your loved one’s creditors are paid throughout this period.

The sale of the residence may be mandated by the courts in certain situations so that cash can be distributed among family members. The most pricey method for transferring property is through probate, and descendants often only receive a small portion of the inheritance.

2. Determine if you are the Personal Representative
A personal representative will be chosen by the decedent or the legal system. In terms of the inherited home, this individual has several responsibilities.
To provide them the chance to submit claims on the assets and pay off obligations, they must inform creditors about the passing. The lender may decide to action these in particular circumstances or to write them off.

Before anybody inherits anything, the personal representative has to pay the debts owed to creditors. They will have to liquidate the inherited home if there are not sufficient liquid assets to satisfy the creditors. In many cases, My Tennessee Home Solution will negotiate any debts such as judgements and liens against the property on behalf of the family. This is no guarantee that it will work, but we have a strong track record of reducing 100% of the debts if we are able to contact the creditors.

Although it may seem difficult, this must be completed when someone passes away. For this reason, people are typically cautious about choosing the personal representative.

Someone who can get things done and is organized is required. Here are a few accounts to think about:

• Accounts for savings and banking
• Accounts for earnings and retirement
• The principal mortgage account
• Statements for credit cards
• Insurance contracts
• Household assistance (for example, a gardener or housekeeper)
• HOA Fees
• Mortgage loans
• Refinanced mortgages
• Real estate taxes
• Utilities
• Medical expenses
• The party responsible must make sure that the person who has rendered the service is paid.

3. Distribute the personal Belongings
Most people don’t want to sell an inherited property without taking care of treasured or personal items inside. Choose how you want to distribute them. In some situations, the court or a will can determine this, and inheritors must abide by it.

Any remaining items could be sold at an estate sale, and the money can be divided among the heirs, as this is a service that My Tennessee Home Solution can help coordinate on behalf of the family.

Most people do not want to deal with the majority of the belongings inside the home such as the furniture, clothes, etc but do not know what to do. If you decide to sell off market to a team like My Tennessee Home Solution, then you do not have to worry about any of it and can just sell the house as-is and leave anything you want behind.

4. Get the House Ready for Sale
When you’re selling on the market, a thorough cleaning of the house is usually required, along with repairs. Making the house marketable can help you sell it for the best price possible if you decide to put it on the market.

Depending on the state of the house, this can take a lot of time, money, and energy.

Ensure all of these costs are included if siblings are sharing the revenue from the sale of the family house. This will prevent the person who arranges the home from receiving less money.

5. Choose Your Selling Strategy

There are a few ways you can sell the home:

• Sell to an Investor: If you want to sell quickly and avoid the hassle of repairs, consider selling to a real estate investor. They buy homes “as is,” and the process is fast.

  Companies that acquire houses will purchase them in any condition. It won’t be long until the seller closes on the property after accepting the investor’s cash offer. After the closing, the seller leaves with money in hand.

  Your inherited property’s obligations, both past and present, are factored into the cash homebuyer’s offer. They include the cost of any repairs and any debts that need to be paid in their offer. You offer to sell the residence “AS IS”—as-found.

  Repairs are time-consuming and expensive. In this situation, you don’t need to undertake pricey repairs or remodel your home because the investor will buy it as-is.

  You won’t have to wait for an inspection report because investors don’t always operate with inspectors. Typically, you might receive the cash offer the following day or even right away, when the investor comes to see your home. Only a few days separate the cash offer and closing. You receive the whole amount of your money upon closure.

  The seller, the seller’s agent, the client, the buyer’s agent, investigators, mortgage companies, and repair contractors are just a few of the numerous parties that might complicate and postpone the closing in a standard real estate transaction. You collaborate primarily with a home investor when they purchase your inherited property. As a result, there is very little work involved in the entire procedure.

• Hire a Real Estate Agent: An agent can help you list the property, set a fair market price, and navigate the selling process, though there will be commissions involved.  In the end, using a real estate broker to sell your property can help you achieve the greatest possible price, although the process can be more intricate. A real estate agent will assist you in setting the asking price, marketing the home, and negotiating the sale.

  Setting the appropriate listing price for a home is challenging. You don’t want the residence to be valued too low. However, you also don’t want it to be too expensive and remain on the marketplace for months. An expert Realtor can assist you in determining a listing price that will draw purchasers while also accurately valuing your home.

  If you’re seeking the greatest offer possible, have the funds available to invest in bringing the property up to market standards, and don’t need to sell immediately, Realtors can be a good option. They are aware of how your home stacks up against the other homes on the market nearby. They will advertise the home, highlighting its worth to possible buyers

• For Sale By Owner (FSBO): Selling the house yourself is an option, but it can be time-consuming, especially if you’re unfamiliar with the real estate market.

  Technically, you could also sell the house by yourself. Most communities have seen for sale by the owner (FSBO) signage. An FSBO sale involves you setting the asking price, marketing the home, scheduling showings, and settling the deal with the buyer by yourself.

  There are no real estate commissions due. Theoretically, selling FSBO could generate more revenue than trying to sell to a house buyer or through a realtor, since there are fewer fees and commissions involved. However in reality, houses sold by realtors often bring in more money than ones sold via FSBO. Therefore, unless you are educated in the real estate market, it’s probable that selling the property yourself won’t bring in any more cash than what you’d have spent on a Realtor to sell it.

Taxes While Selling Inherited Property

Any proceeds from the sale of an inherited home or other asset might be liable to income tax, more particularly capital gains tax. Even so, you might not always be required to pay taxes. The fair market value (FMV), basis of the house, and eligibility for the home selling exclusion all affect whether or not you must pay capital gains tax when selling an inherited home.

The Exception for Property Sales

If you are eligible for the Section 121 home sale exception, some or all of your earnings from selling a property may be excluded from capital gains tax. If you file your taxes together as a civil partnership, the very first $500,000 of profit on the sale of your home is exempt from taxation; if you file separately or as the head of household, the first $250,000 of gain is.

You must have made the home your principal residence for at least two of the previous five years in order to be eligible. So, unless you remain in the property for at least two years, if you inherit a property and subsequently sell it, you must pay capital gains on the wholesale price.

Understanding Capital Gains and Fair Market Value

When you sell an inherited home, the fair market value (FMV) is important for tax purposes. The FMV is the value of the home on the date of the previous owner’s death and is used to determine your tax basis. If the property appreciates in value from the time of inheritance to when you sell it, the profit may be subject to capital gains tax.

However, if the property is your primary residence for at least two of the last five years, you may be eligible for the Section 121 exclusion, which can exclude up to $250,000 ($500,000 for married couples) of the capital gains from tax.

Final Thoughts

Inheriting property can be an emotional and complex process, and understanding your options is crucial. Whether you decide to sell, keep, or rent out the property, each choice has its own financial and legal implications.
If you want to sell your inherited property quickly and without the hassle of repairs, consider working with a real estate investor. A company like My Tennessee Home Solution can help you sell your inherited property fast, with a cash offer and a quick closing process, no matter the state of the home.
If you’re ready to take the next step in selling your inherited home, don’t hesitate to reach out for more information or to get a cash offer today.

Contact Us
Get in touch with My Tennessee Home Solution to receive your fast cash offer today and learn how we can help you through the process.

This comprehensive guide should help readers understand the entire process of inheriting and selling property, along with the financial and legal aspects to consider.