In this article, we cover the basics of how to sell your parents’ house after they die.
I will discuss the primary methods of selling and the implications regarding probate. I will also let you in on the best way to sell your inherited house without complications.
Explore these essential insights below.
Can I Sell My Parents’ House After They Die?
In most instances, you can sell your late parents’ house. However, how and when you can complete the sale varies based on the specific circumstances surrounding the estate.
You can carry out the sale in several ways, and you’ll find more details on those methods below.
But before continuing, it’s pertinent to mention that there may be complications or roadblocks to overcome before the sale can happen.
One of the most common scenarios in an inherited house sale is a dispute among beneficiaries. That rings especially true when selling your childhood home after your parents die.
Emotional attachments can run deep, and heirs may flatly refuse to sell. Or, they may have unrealistic expectations about what the house should sell for. Or you have a sister living in the inherited house who just won’t sell it.
Whatever the conflict, it can lead to the need for mediation or court intervention to proceed.
If not all heirs agree to sell the property, most often, such cases are resolved by buying siblings out of inherited house.
3 Ways to Sell Parents’ House After Death
Selling your parents’ home after their death involves one of three ways, depending on the estate’s situation. Learn how to sell a house you inherited by using any of these approaches.
#1 Selling Deceased Parents’ House Without Probate
Probate is the legal process of settling a deceased person’s estate and transferring asset ownership to the rightful inheritors (designated by the will or intestate law).
This court-supervised process involves specific rules that vary by jurisdiction and guide how the estate is managed and distributed. Depending on the estate, probate can be short and simple or complex and lengthy.
Probate is generally required when there are substantial or solely owned assets or a will. However, you can skip probate in some cases.
For instance, if you hold shared ownership with built-in inheritance, property title automatically passes to you when your parents die. You can sell heir property without court involvement.
Deeding a property can also be a probate-avoidance tool. Assume, for instance, that your mom names you as the beneficiary in this type of transfer deed. You would then control when and how to sell your deceased mother’s house.
No probate is required if you inherited your parents’ house through a trust. The trustee (it may be you) has the authority to sell the property as outlined by the terms of that legal arrangement.
Also, some jurisdictions allow you to transfer a house outside of probate for smaller estates. State law establishes the value limit that qualifies for this exception.
For more in-depth information, check out our article detailing how you can sell a house without going through probate. It will help you better understand the exclusions.
#2 Selling Deceased Parents’ House During Probate
Although a house can be sold while in probate, its sale must follow the administrative procedures of estate settlement.
This structured approach ensures compliance with the law and court requirements.
A critical player in this framework is the personal representative overseeing the sale. That person is either an executor named in the will or an administrator appointed by the court.
You must petition the court to formally appoint you in this role to assume authority for selling your deceased parents’ house. Once appointed, you can initiate the sales process.
We encourage you to read our A-to-Z guide on selling real estate in probate to delve into the detailed steps involved in a property sale.
In the meantime, here is what that process generally entails:
- Court consent: You need court approval to market the property and accept an offer to ensure the sale benefits the estate and aligns with market value.
- Decision-making: As the personal representative, you must make several key decisions, such as sales strategy, appraiser choice, and purchase offer selection.
- Property preparation: You’re also in charge of preparing the house for sale, which may involve repairs. Note that selling an inherited house as is can expedite the process.
- Sales transaction: The real estate transaction is in your hands, including offer evaluation, negotiations, and closing.
- Funds management: Your need to manage the sale proceeds, paying debts first and then distributing the remaining funds to the inheritors.
#3 Selling Deceased Parents’ House After Probate
You can hold off on the sale of your parents’ house after their death until probate is complete if it’s not necessary to sell the property before then.
Here are five reasons why it may be preferable to wait:
1. More Preparation Time
Using the probate period to ready the home can benefit a property requiring attention, for instance, when you inherited a hoarder’s house.
2. Less Complexity
Once probate is complete, those rules no longer apply. You can handle the sale just like any other real estate transaction.
3. Shorter Timeline
A probate sale can be impacted by court delays, extending the time frame well beyond a standard home sale. Selling afterward can be faster.
4. Reduced Pressure
Probate gives you breathing room to figure out if it is better to sell or rent an inherited house for a while. Once it concludes, you’re better equipped to make mindful choices about timing and method for selling.
5. Market Timing
Rather than selling right after inheriting, waiting allows you to pick a time, based on market conditions, that can help you maximize the sales price.
Be aware that waiting may result in higher taxes if the property’s value increases.
When you inherit property, the tax basis updates to the market value. If you sell later and the value goes up, you may owe capital gains tax on the sale of your deceased parents’ home.
If you’re interested in learning more, you’ll want to read our article covering how to avoid paying capital gains tax on inherited property.
Also, refer to our guide on how to report the sale of inherited property on a tax return to understand the requirements you need to complete for tax reporting.
The Easiest Way to Sell the Family Home After Parents’ Death
To sell your parents’ house after their death, specialized investment companies that buy inherited houses can be the easiest and most efficient option.
They provide an alternative to real estate agents, and working with them offers several benefits:
- On-the-spot cash offer: Get cash and eliminate the wait for and dependency on mortgage approval sought by the buyer.
- Sell without updates: Avoid investing in repairs when you’ve inherited a house that needs work, as these investors buy homes ”as is”.
- Quick and simple sale: There’s typically less paperwork and a much faster closing time than in conventional transactions.
- Lower or zero closing costs: Investment companies often include settlement costs in their offer to simplify the transaction.
- Avoid agent fees: You may need an agent for a probate sale, but you can save the commission when you sell the property before probate or after it.
A con associated with using an investment company is receiving a below market value offer due to the investor’s profit margin and any needed repairs.
If you are interested, get a cash offer from a few local companies vetted and approved by our website. Then, choose the one that best suits your needs and prepare to sell your probate house fast.
