How to Sell an Inherited House:
Probate, Taxes & Timeline Guide (2026)

Generally, no inheritance tax on receiving the property. Only 6 states have inheritance tax (Iowa, Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania). When you sell, you may owe capital gains tax—but thanks to stepped-up basis, this is often minimal or zero if you sell close to the date of death. The property's basis "steps up" to fair market value at death, so you only pay tax on appreciation after that date.

Yes, in most cases. In states with independent administration (like Texas), the executor can sell without court approval. In supervised probate states, you'll need court approval before selling—this adds time but is still possible. The executor signs the deed on behalf of the estate. Cash buyers are experienced with probate sales and can navigate this process smoothly.

The mortgage doesn't disappear. As heir, you can: (1) Continue making payments and keep/sell the house, (2) Refinance into your own name (requires qualifying), or (3) Sell the property and pay off the mortgage from proceeds. Most heirs choose to sell. Federal law (Garn-St. Germain Act) prevents lenders from calling the loan due solely because of death—you have time to figure out your plan.

All owners must agree to sell (or one can petition for partition sale through court). Steps: (1) Get everyone on a call to discuss, (2) Agree on minimum acceptable price, (3) Choose a selling method, (4) All owners sign closing documents. For out-of-state heirs, remote notarization makes this easier. If one heir refuses, options include buyout, mediation, or partition lawsuit (last resort).

A small estate affidavit lets heirs transfer property without probate if the estate value is below your state's threshold (typically $75,000-$184,500). You file a sworn statement that you're entitled to the property, usually with a death certificate and proof of heirship. However, this often doesn't apply to real estate alone—if the house is worth more than the threshold, you'll likely need probate. Some states have separate procedures for transferring real estate via affidavit.

It depends on how you sell. Traditional buyers and iBuyers expect empty, clean properties. Cash buyers like Obi Buys Homes purchase properties as-is—full of furniture, belongings, even decades of accumulation. We handle the cleanout. This is especially valuable when dealing with hoarding situations, when heirs live far away, or when the emotional burden of going through belongings is too much.

This complicates traditional sales but not cash sales. Code violations (unpermitted work, safety issues) must typically be resolved before selling to a financed buyer—banks won't lend on non-compliant properties. Liens (tax liens, contractor liens, judgments) attach to the property and must be paid at closing. Cash buyers can close despite violations and will work with you to negotiate or pay off liens from proceeds.

Multiple methods: (1) Online estimates from Zillow, Redfin, Realtor.com (free but ±10% accuracy), (2) Comparative Market Analysis from a real estate agent (free), (3) Professional appraisal ($300-500, most accurate). For tax purposes (stepped-up basis), get an appraisal dated close to the date of death. For selling purposes, a cash buyer's offer after walkthrough reflects actual market conditions and property condition.