Selling an inherited house fast is possible, even if the property needs repairs or you’re dealing with probate. You can sell your inherited house in as little as 7-14 days by working with cash buyers who purchase homes as-is, or through traditional methods that may take 2-6 months.
This guide will walk you through everything you need to know about selling inherited property quickly. You’ll learn about the probate process, tax benefits, and the fastest ways to turn your inherited house into cash.
What Happens When You Inherit a House
Getting a house through inheritance can feel overwhelming. You’re dealing with grief while also handling legal and money matters. Here’s what typically happens:
The Probate Process
Most inherited houses must go through probate court. This legal process transfers ownership from the person who died to you. According to the Administrative Office of the U.S. Courts, probate typically takes an average of four to six months for the property to be legally transferred from the deceased to the beneficiary, though it can take longer for complex estates.
Probate involves several steps:
- Filing the will with the court
- Appointing an executor or personal representative
- Paying off debts and taxes from the estate
- Distributing assets to heirs
When You Can Skip Probate
Some inherited properties don’t need probate. If the home was held in a trust, jointly owned with rights of survivorship, or had a transfer-on-death deed recorded, it may pass outside of probate. These methods let you take ownership much faster.
Taking Over Ongoing Costs
Once you inherit a house, you become responsible for all costs. Often, there are ongoing financial obligations such as mortgage payments, property taxes, utilities and maintenance, and insurance. These costs add up quickly, which is why many people choose to sell inherited houses fast.
Your Three Options for an Inherited House
You have three main choices when you inherit a house:
Option 1: Keep and Live In It
Living in your inherited house is the simplest choice tax-wise. You won’t pay extra taxes just for living there. But this only works if:
- The house is in good condition
- You want to live in that location
- You can afford the ongoing costs
- Other heirs agree (if there are multiple inheritors)
Option 2: Rent It Out
Becoming a landlord can provide monthly income. But rental properties require:
- Money for repairs and maintenance
- Time to find and manage tenants
- Knowledge of landlord laws
- Ability to handle problem tenants
Becoming a landlord can be costly and time-consuming, and it shouldn’t be treated as a hobby—it’s a business.
Option 3: Sell the House
Selling is often the smartest choice. It gives you cash right away and eliminates ongoing costs. You can sell through:
- Traditional real estate agents
- Cash home buyers
- For sale by owner
Why Selling Your Inherited House Fast Makes Sense
Most people who inherit houses choose to sell them quickly. Here’s why:
Avoid Mounting Costs
Empty houses cost money every month. Property taxes, homeowners insurance, utilities, maintenance, and general wear and tear may make a huge dent in your finances. The longer you wait, the more money you lose.
Properties Lose Value When Empty
Houses that sit empty fall apart faster. If the house is not being lived in, it will slowly deteriorate over time, resulting in what could be a substantial drop in the home’s value.
Many Inherited Houses Need Major Repairs
Most inherited homes are in fairly bad shape because many times the homeowners were elderly, ill, or just unable to provide proper maintenance. Fixing these problems costs thousands of dollars.
Tax Benefits of Quick Sales
If you sell the house quickly after inheriting it, even if it significantly increased in value since the deceased purchased it, you won’t pay capital gains tax. This is because of something called “stepped-up basis,” which the IRS explains in Publication 551 as a provision that adjusts the cost basis of inherited assets to their fair market value at the time of death.
Understanding Stepped-Up Basis Tax Benefits
One of the biggest advantages of inherited property is the stepped-up basis tax rule. This can save you thousands in taxes.
How Stepped-Up Basis Works
When you inherit property, the IRS resets the cost basis to the property’s value on the date of death. According to Internal Revenue Code Section 1014, this means that for tax purposes, the base price of the asset is generally reset to its value on the day that you inherited it.
Here’s an example:
- Your parents bought a house for $100,000 in 1980
- The house is worth $500,000 when you inherit it in 2025
- Your tax basis becomes $500,000 (not $100,000)
- If you sell for $500,000, you owe $0 in capital gains tax
When You Do Pay Capital Gains Tax
You only pay capital gains tax on appreciation that happens after you inherit the property. If you inherit property and then immediately sell it, you would owe no taxes on those assets.
But if you hold the property and it grows in value, you’ll pay tax on that growth when you sell.
Step-by-Step Guide to Selling Your Inherited House Fast
Step 1: Determine Legal Ownership Status
Before you can sell, you need to know how ownership transfers:
Transfer-on-Death Deed: If the loved one was prepared and made a transfer on death deed, sometimes known as a beneficiary deed, probate may be avoided. You can sell right away.
Living Trust: Properties in trusts usually transfer quickly without probate court involvement.
Will: If the property goes through a will, you’ll likely need to complete probate before selling.
No Will: This makes the process more complex and usually requires probate court supervision.
Step 2: Handle Probate Requirements
If probate is required, work with the executor to:
- File necessary court documents
- Pay estate debts and taxes
- Get court approval to sell the property
- Obtain clear title in your name
The duration of the probate process varies according to a wide variety of factors including the size of the estate, number of disputes, and if property is held in multiple states.
Step 3: Address Existing Mortgages and Debts
Check if the inherited house has:
- Outstanding mortgage payments
- Property tax liens
- Other debts attached to the property
Sometimes with inherited properties, there may be judgments or liens against the property that would still have to be paid upon the sale. These must be resolved before or during the sale.
Step 4: Get a Property Assessment
Understanding your property’s value helps you make smart decisions. Consider getting:
- Professional appraisal
- Comparative market analysis from a real estate agent
- Multiple cash offers from investors
Step 5: Choose Your Selling Method
You have several options for selling fast:
Fast Sale Option 1: Cash Home Buyers
Cash buyers offer the fastest way to sell inherited houses. Here’s how it works:
Benefits of Cash Sales
- Speed: Cash offers often arrive within 24 hours, and I can close in as little as 10 days
- No repairs needed: Cash buyers purchase houses as-is
- No showings or staging: Skip the hassle of preparing for visitors
- Guaranteed closing: No financing contingencies that could fall through
- Fast resolution: Perfect for probate situations
How Cash Sales Work
- Contact a reputable cash buyer
- Provide basic property information
- Receive a no-obligation cash offer within 24-48 hours
- Accept the offer and choose your closing date
- Close in 7-14 days and get your cash
What to Expect for Price
Cash offers are typically 70-85% of market value. While this is less than retail price, you save money by avoiding:
- Real estate agent commissions (6% of sale price)
- Repair costs (often $10,000-30,000+)
- Carrying costs while the house sits on the market
- Risk of deals falling through
Fast Sale Option 2: Real Estate Agents
Working with an experienced agent can help you get maximum value, though it takes longer than cash sales.
Choose an Agent with Probate Experience
Real estate agents with probate expertise play a crucial role. They understand the legal intricacies involved in selling estate properties. Look for agents who:
- Have experience with inherited properties
- Understand probate court requirements
- Can work with estate attorneys
- Know how to market properties quickly
Timeline for Agent Sales
Traditional sales through agents typically take:
- 1-2 weeks to list the property
- 2-8 weeks to find a buyer
- 4-6 weeks to close
- Total: 2-4 months on average
Fast Sale Option 3: For Sale by Owner (FSBO)
Selling without an agent saves commission costs but requires more work:
FSBO Advantages
- Save 6% agent commission
- Control over pricing and showings
- Direct contact with buyers
FSBO Challenges
- More paperwork and legal requirements
- Need to handle marketing yourself
- Must screen buyers and negotiate deals
- Time-consuming process
Preparing Your Inherited House for Quick Sale
Clean Out Personal Belongings
Decluttering the home enhances its overall appeal and functionality. Focus on:
- Removing personal items and family photos
- Getting rid of old furniture and clutter
- Deep cleaning all rooms
- Making the space feel larger and more inviting
Handle Minor Repairs (If Selling Traditionally)
For traditional sales, consider basic improvements like:
- Fresh paint in neutral colors
- Fixing leaky faucets and broken fixtures
- Cleaning carpets or refinishing floors
- Improving curb appeal with landscaping
Gather Important Documents
Collect all property-related paperwork:
- Property deed
- Recent tax records
- Utility bills
- Any inspection reports
- HOA documents (if applicable)
Avoiding Common Inherited House Mistakes
Don’t Wait Too Long to Decide
Every month you delay costs money in:
- Property taxes
- Insurance payments
- Utility bills
- Maintenance costs
Don’t Try to Handle Everything Alone
Inherited property sales involve complex legal and tax issues. Work with:
- Probate attorneys
- Tax professionals
- Experienced real estate professionals
Don’t Accept the First Offer Without Comparison
Whether working with cash buyers or traditional sales, get multiple offers to ensure fair pricing.
Don’t Forget About Multiple Heirs
When multiple siblings are involved, decisions can get tricky. A cash sale can swiftly resolve disputes, ensuring everyone gets their fair share without the headache of negotiations.
Special Situations for Inherited Houses
Houses in Poor Condition
Many inherited houses need major work. If your loved one was elderly, the house might not have been maintained well in recent years and may require expensive renovations or repairs. Cash buyers are perfect for these situations since they buy as-is.
Multiple Owners
When multiple people inherit a home, they become co-owners, unless otherwise specified. All owners must agree on the sale. This can create complications, making fast cash sales attractive for quick resolution.
Out-of-State Inherited Properties
Managing inherited property from far away is challenging. You can’t easily:
- Maintain the property
- Show it to buyers
- Handle repairs
- Manage ongoing costs
Cash buyers make long-distance sales much easier.
Working with We Buy Colorado for Your Inherited House
If you’ve inherited a house in Colorado and want to sell fast, We Buy Colorado offers a simple solution. Here’s why Colorado homeowners choose us:
Our Inherited Property Process
- Quick Assessment: We evaluate your inherited property and provide a fair cash offer within 24 hours
- No Repairs Required: We buy houses as-is, regardless of condition
- Fast Closing: Close on your timeline, often within 7-14 days
- No Hidden Fees: Our process is transparent with no surprise costs
We Handle Complex Situations
- Probate court requirements
- Properties with liens or judgments
- Houses needing major repairs
- Multiple heir situations
- Out-of-state owners
Get Your Cash Offer Today
Ready to turn your inherited house into cash? Contact us today for a no-obligation offer. We’ll evaluate your property and present you with a fair cash offer within 24 hours.
Tax Considerations for Fast Inherited House Sales
Capital Gains Tax Benefits
The stepped-up basis rule provides significant tax advantages for inherited property sales. According to the Congressional Budget Office, a step-up in basis resets the cost basis of an appreciated inherited asset for tax purposes. This means you typically won’t pay capital gains tax if you sell soon after inheriting.
State Tax Considerations
There are no federal inheritance taxes and only six states levy any form of inheritance tax, according to the Center on Budget and Policy Priorities. Colorado doesn’t have an inheritance tax, making it easier to sell inherited property here.
Consult a Tax Professional
While the stepped-up basis provides major benefits, always consult with a tax professional about your specific situation. They can help you:
- Understand your exact tax obligations
- Plan the timing of your sale
- Identify potential deductions
- Handle any complex tax situations
Final Thoughts
Selling an inherited house fast doesn’t have to be overwhelming. Whether you choose to work with cash buyers for speed and convenience, or traditional agents for maximum value, the key is understanding your options and acting quickly to avoid mounting costs.
The stepped-up basis tax advantage makes selling inherited property particularly attractive, often allowing you to avoid capital gains taxes entirely. Combined with the elimination of ongoing property costs, selling fast usually makes the most financial sense.
If you’ve inherited a house in Colorado and want a quick, hassle-free sale, We Buy Colorado can help. We specialize in purchasing inherited properties as-is, handling all the paperwork, and closing on your timeline.
Get your free cash offer today and turn your inherited property into cash within days, not months. Our experienced team understands the unique challenges of inherited properties and will guide you through every step of the process.