In this guide, you’ll learn about two effective agent-free ways to sell your inherited home as a “for sale by owner” listing or FSBO.
We’ll discuss the benefits and drawbacks of each, alongside the essential steps in a FSBO sale.
Explore these options below.
#1: The Easy Way to Sell Your Inherited House FSBO
Some companies, run by real estate investors, buy properties — including inherited homes — directly from sellers. In such a sale, you don’t need to hire an agent.
These house buyers close fast, pay in cash rather than borrow a mortgage to be able to buy your house, and don’t ask for any repairs.
Who Are Real Estate Investors?
Real estate investors buy properties with the goal of turning a profit. Unlike typical buyers looking for a place to live, investors view properties as a business opportunity.
Many use one of two business models:
- Flipping: They fix or upgrade the property to make it more attractive to buyers and boost its value, then sell it for more than what they paid for buying and improving it.
- Renting: They hold onto the house and rent it out to generate a steady income stream.
Pros of Selling to a House Buying Company
Selling to a house buying company offers several compelling advantages.
- Sell as is
These investors typically aren’t put off by the property’s bad condition, whether fixtures could use an update or the problem is something more serious.
You won’t be asked to make repairs, clean the house out, or do any renovations. You can sell the property just the way it is, which simplifies the entire process.
- Quick sale
Another big plus is the speed of the transaction. Investment companies have streamlined processes that move deals along quickly.
Many can close in 1-2 weeks, provided the house doesn’t have complex legal issues that delay closing. That makes this route much faster than a traditional sale, which typically closes in a month or two.
- Cash purchase
Since the buyer is paying in cash, you don’t have to wait around for them to get approved for a mortgage. That eliminates a traditional waiting period.
There’s also no need to worry about financing falling through, making you look for a buyer again.
- Closing costs covered
In a traditional sale, expenses like title insurance, escrow fees, and other charges can quickly add up to thousands of dollars.
When the buyer handles those expenses, that can save you a lot of money.
- No agent commissions
By selling to an investor, you avoid substantial real estate agent fees. You don’t have to pay neither for the seller’s nor for the buyer’s agent.
However, this is mostly true in situations where you’ve gone through a probate and gotten your property’s title transferred in your name.
Most often, when a house is sold during a probate, a listing agent is involved. If you don’t want to use one, you can discuss this with the court or with your probate attorney.
Cons of Selling to a House Buying Company
The only drawback is that an investor’s offer will likely be lower than one from a traditional buyer.
This scenario is an inherent part of what happens when you sell a house you inherited to a professional home buying company, as they need to pull a profit from the property.
This means they’ll factor in repair costs, what it takes to hold the property, and the profit they need to make.
However, an investor’s offer must not be compared to an offer you’d get in a traditional Realtor-assisted sale, and here is why.
In a sale to an investor, the offer you get is the cash you take home from closing. It’s not the case in a Realtor-managed sale, because in this case you need to subtract agent commissions and closing costs from the offer you accepted.
If you compare the final net amount (and not the offers or selling prices) you’d get from an investor sale to the one you get from an agent-assisted sale, you may find that selling to an investor is worth it, considering all other benefits you are also getting.
It’s worth mentioning there are two other ways of selling an inherited house, though they are generally less convenient than a direct sale to a real estate investment company.
For more information on these methods, refer to our article on selling a house you inherited.
Where to Find an Ethical House Buying Company?
When you’re looking for a professional home buyer you can trust, a good place to start is to request a cash offer on your home from one of the best companies that buy inherited homes.
These investors understand the unique aspects of selling these types of properties, including managing the legal complexities of probate.
#2: The Hard Way to Sell Your Inherited House FSBO
Now that we’ve looked at the easier option, let’s deep dive into the traditional FSBO route and how it compares to selling directly to investors.
Here, the focus is on inherited properties where the title has already been transferred to the heir — usually after probate is complete.
However, there are cases where an inherited property can be sold by way of FSBO while undergoing probate. We discuss this process in our article on selling a home during probate.
How Does a FSBO Sale Work?
Below are the general steps involved when selling an inherited house yourself:
Step #1: Property Preparation
You’ll need to clear out personal belongings, which can be emotional — especially when selling your parents’ house after their death.
If you inherited a house that needs work, you and any co-owners must also decide whether to fix or consider selling an inherited house as is if it isn’t move-in ready.
Also, when sharing ownership, deciding who handles what, how costs are split, and who keeps which items will require extra coordination.
Step #2: Value Determination
First off, you need a good sense of what your home is worth. Just know that selling as is means a lower asking price.
You can check out online tools to find your home value or what’s recently sold nearby as a starting point.
When dealing with co-heirs, you may need an appraisal for an inherited property to head off arguments.
Step #3: Marketing and Showing
Once everything is set, it’s time to reach buyers. Take great photos, write a description that highlights what makes the home special, and post on popular FSBO sites.
You’ll be handling showings and inquiries, possibly with other heirs. If you choose not to make repairs, be prepared to answer questions about the condition.
Step #4: Negotiation and Paperwork
You’ll have to review offers, handle negotiations yourself, and deal with a stack of legal paperwork (or pay a lawyer to assist).
That includes contracts and disclosures, which are even more pertinent when selling the property in its current condition.
Crucially, every heir must sign every accepted offer and the final contract.
Step #5: Closing
You’ll need to finalize the paperwork with the title company or attorney, and if you’re sharing the inheritance, make sure everyone agrees on how the costs and proceeds are divided.
Pros of Selling FSBO the Hard Way
Here are key benefits to consider when selling an inherited house yourself:
- You control the entire process.
If you inherited a house and want a full say in its sale, FSBO allows that. From pricing to negotiations to choosing a buyer, you make every decision.
- You have a shot at market value.
With control of the asking price, you can aim for market value. You can also hold out for an offer that reflects that value, and without agent fees, you’re in a better position to get what the home is worth.
Cons of Selling FSBO the Hard Way
Potential downsides include these:
- No market value guarantee
When getting an inheritance and deciding on how to price it for selling, your lack of home sale experience can result in fewer serious buyers and lowball offers, which may lead you to underprice the home or settle for less.
- Slower than investor sales
These sales often take longer because typical buyers need time to qualify for a mortgage. You’ll also handle everything yourself, which is time-consuming, and have limited marketing reach to find buyers quickly.
- The legal side
You’ll really need to understand contracts, disclosures, and all that crucial paperwork. You can’t skip these steps or make mistakes — they’re vital. So, you’ll either have to master the details or get expert help.
Next Step
Now that you know all the options you have for selling an inherited home the FSBO way, you can decide which route to take that best serves your interest.
If the ease and speed of a direct cash sale appeal most, request a cash offer from our investors with absolutely no obligation.
You may receive more than one offer from different investors, compare them, and choose the one you like best or decline them all.
