When You've Inherited a Property

If you've inherited a property, you're likely dealing with grief, unfamiliar tasks, and possibly family tension—all at once. This page covers what you're actually facing: timeline realities, the targeting you may already be experiencing, and the options still available to you.

Inheritance Is Emotionally Complicated—And Structurally Straightforward

Inheriting a property often comes wrapped in grief, family complexity, and sudden responsibility for something you didn't choose. That emotional weight is real and valid.

But emotional difficulty and structural options are separate things. The property itself—regardless of how it came to you—has the same exit options as any other property. A house inherited in probate can be sold for cash, financed to a buyer, or held for income. The same is true for a house you've owned for years.

The feeling that you "just want it gone" is understandable. Acting on that feeling without understanding your options is where problems arise.

What You're Up Against

Why You're Already Getting Calls

If you've inherited a property, you may have already received unsolicited offers—sometimes within days of the death. This isn't coincidence.

Probate filings are public records. Investors monitor courthouse filings to find newly inherited properties. They know heirs are often emotionally exhausted, geographically distant, unfamiliar with local values, and eager to resolve things quickly.

The offers that arrive first are typically 40-60% below fair market value. They're set based on what a stressed heir might accept, not what the property is worth. The same property that gets a $180,000 first offer might bring $280,000 from a buyer who isn't banking on heir fatigue.

Knowing about this targeting doesn't mean all offers are predatory. But it does mean first offers deserve scrutiny, not relief.

Understanding the targeting explains the offers. But what about the timeline pressure you're feeling?

Probate Doesn't Mean What You Think

Many heirs assume they must wait for probate to close before doing anything with the property. This is usually wrong.

Probate timelines vary dramatically by state. Informal probate in states like Arizona or Colorado can finish in 30-60 days. Formal probate in judicial states may take 18 months or longer. But in most places, property can be sold during probate with court approval. You don't have to wait for the estate to close.

Small estate procedures—available when estates fall below state thresholds ($20,000 to $200,000 depending on state)—can skip formal probate entirely. And if the property was titled with a Transfer on Death deed (available in about 29 states), it may pass directly to you without any probate at all.

The timeline pressure heirs feel is often manufactured by targeting, not by actual legal constraints.

Timeline constraints are one thing. But what if you're not the only heir?

When Multiple Heirs Inherit: It's Not All-or-Nothing

When property passes to multiple heirs without specific allocation, they typically become co-owners. Each owns a fractional interest in the whole property. This feels like gridlock: everyone must agree to sell, right?

Not exactly. While selling the entire property requires agreement, alternatives exist.

One heir can buy out another's share at fair market value. This only requires agreement between the buying and selling heirs—not unanimous consent. If siblings disagree, the one who wants to keep the property can purchase the others' shares.

If heirs can't agree at all, any co-owner can ask a court to force a resolution. This is called "partition." The court can either divide the property physically or order a sale. Mediation, often required before partition, succeeds in 60-80% of family property disputes.

The Uniform Partition of Heirs Property Act, adopted in over 20 states, adds protections: required appraisals, right of first refusal for family members, and court oversight of any forced sale.

What Many Heirs Don't Know

The Tax Benefit Most Heirs Don't Know They Have

Here's something the early offers don't mention: inherited property comes with a major tax advantage. It can be worth tens of thousands of dollars.

When you inherit property, your tax basis "steps up" to fair market value at the date of death. Say your parent bought a house for $50,000 in 1985 and it's now worth $400,000. You don't inherit their $50,000 basis—you inherit a $400,000 basis. The $350,000 of appreciation during their lifetime disappears for capital gains purposes.

If you sell the property at fair market value, there's typically zero capital gains tax. The step-up erased the gain.

This matters for how you approach the sale. A rushed sale at a big discount—say, $300,000 instead of $400,000—doesn't just leave $100,000 on the table. It also wastes the step-up. You'd be creating a taxable "loss" from your stepped-up basis that you didn't need to take.

To protect this benefit, document the fair market value at death with a qualified appraisal. Without this documentation, disputes with the IRS about your actual basis become much harder to resolve.

Your Options

Structure Options

Inherited properties can be sold through any of the standard exit structures:

Cash/wholesale offers close in 14-21 days. Prices vary by 15-25% depending on the buyer. Shopping multiple offers is worthwhile even when speed matters. See Cash and Wholesale Offers for how these work.

Seller financing creates an income stream if you prefer payments over a lump sum. Regulatory requirements apply. See Seller Financing for details.

Lease-options generate income while deferring the sale decision. This is useful if you're undecided or want more time. See Lease-Options for the mechanics.

While you evaluate these options, some practical considerations apply.

Practical Considerations While You Decide

While evaluating options, some practical realities apply.

If you're the executor, you have a legal duty to preserve estate assets—including the property. Estate funds can typically pay carrying costs (mortgage, taxes, insurance, utilities) during probate. If the estate lacks cash, you may need court approval to sell assets or borrow against the property.

For out-of-state properties, property management companies handle day-to-day operations for 8-12% of collected rent. Distance doesn't force an immediate sale.

One caution: vacant properties create insurance problems. Standard homeowner's policies often exclude coverage after 30-60 days of vacancy. Vacant property insurance costs 50-100% more. If the property will sit empty, address insurance before assuming you're covered.

The Bigger Picture

The Situation Is Complicated—Your Options Aren't Limited

Inheriting a property is genuinely complicated. Grief, family dynamics, distance, probate processes, unfamiliar property conditions—these are real challenges without simple solutions.

But "complicated" is different from "constrained." The emotional weight of inheritance doesn't limit what you can do with the property. You aren't forced into a bad sale because you're tired. You aren't locked into waiting because probate is happening. You aren't helpless because heirs disagree.

What changes with this understanding:

The pressure you feel may be manufactured. Investors targeting inherited properties rely on heirs feeling overwhelmed, uninformed, and urgent. That targeting appears in your mailbox within days because it's systematic—not because your situation is uniquely desperate.

The timeline is likely longer than you think. Probate varies by state and structure. Sales can happen during probate. Small estates may skip it entirely. The "need to act now" is usually false.

Your tax position is better than you expect. The stepped-up basis makes inherited property one of the most tax-advantaged assets you can sell. Quick, desperate sales waste this benefit.

The exit options are the same as any other property. Cash if you want speed. Financing if you want income. Lease-option if you want time. The inheritance didn't limit these—it just didn't teach you about them.

You can navigate this on your terms, at your pace, once you understand what you're actually dealing with.

Related Pages

Your exit options:

• Cash and Wholesale Offers — fast sales to investors

• Seller Financing — creating an income stream

• Lease-Options — income while you decide

If your situation involves:

• Problem Property — title issues or property condition

• State-by-State Legal Considerations — probate and partition vary by state

Before you sign anything:

• Red Flags and Warning Signs

• Questions to Ask Before Signing

Disclaimer: Probate timelines, heir property laws, and partition procedures vary significantly by state. Tax treatment of inherited property has specific rules and exceptions. This page provides general information, not legal or tax advice. Consult an attorney licensed in your state and a qualified tax professional before making decisions about inherited property.

For help evaluating a specific offer you've received, see Red Flags and Warning Signs and Questions to Ask Before Signing.