You inherited a house, or the court named you to handle one. Before you sign a listing, a cash offer, or anything else, a few things are worth knowing. None of them take long. Skipping them is where families lose money.
Here is what I walk through with every family I work with in Los Angeles and Orange County.
1. Find out how the house is titled
How the house was held decides everything that follows. A house in a living trust is handled by the successor trustee, usually without court. A house in the parent’s name alone usually goes through probate. A house held in joint tenancy, or with a transfer on death deed, may pass with a short filing.
The deed and the will or trust tell you which one you have.
2. Know who is allowed to sign
Being an heir is not the same as having the right to sell. In probate, only the person the court appoints can sign, and only after the court issues papers called Letters. Until then, nobody can sign for the estate, even the family member who lives in the house. Related: Who Has the Legal Right to Sell a House During Probate?
3. Check what kind of authority the court gave you
In California, the court usually grants either full or limited authority. Full authority lets you sell after giving the heirs 15 days’ notice. Limited authority means a judge has to approve the sale at a hearing, where other buyers can bid. Your Letters say which one you have.
4. Protect the house now
An empty house needs working locks, someone checking on it, and insurance that still covers it. Many standard homeowner’s policies limit coverage once a house has been vacant for a while, so call the insurance company and tell them the owner has passed. Protecting a vacant probate home
5. Learn what it’s worth before you take any offer
If you’ve gotten letters or calls from people offering cash, you’re not alone. Most families I meet have. A cash buyer’s number is the price they want to pay. It is not the same as what the house would sell for on the open market.
Here’s one example from my own work. A client handling his brother’s estate had an all-cash offer of $740,000 for a home at 2213 W. 180th St. The house was full of belongings. The family sold some items and we brought in a company to clear the rest. We made no upgrades. We listed it at $829,000, received multiple offers, and it sold for $882,000. That was $142,000 more for the estate than the cash offer.
Every estate is different, and no one can promise a number. But knowing the real value protects you and the heirs.
6. Don’t spend money on repairs until you’ve seen the numbers
Some repairs pay for themselves. Many don’t. A clean-out and a good cleaning usually come first. Bigger projects are worth deciding on only after you know who the likely buyers are and what similar homes have sold for.
7. Keep a record of every dollar
The estate will need to account for what it spent: utilities, insurance, repairs, the clean-out. Run it through an estate bank account and keep receipts. How to open an estate bank account
8. Ask your CPA about taxes before you sell
Inherited property often gets a new tax basis based on its value at the date of death, which can lower the tax on a sale. Property tax rules changed in California with Proposition 19, and they matter if a family member wants to keep the house. These are questions for your CPA or attorney, and it’s worth asking them early.
Frequently asked questions
Can I sell an inherited house right away?
Only once someone has the legal authority to sign. For a trust, that’s the successor trustee. For probate, that’s the person named in the court’s Letters.
Should I take a cash offer on an inherited house?
It can be the right choice when speed matters most. Compare it to the house’s open-market value first, so you know what you’re giving up.
Do I have to fix the house before selling?
No. Many estate homes sell as-is. Decide on repairs after you see what comparable homes sold for.
Want to know what the house is really worth before you decide anything? I’ll give you a free value review, whether or not you ever work with me. I don’t buy houses, so I have no reason to tell you it’s worth less than it is. Call or text me at 310-807-6879, or request an Inherited Property Value Review.
Eric Baskett, Century 21 Coastal Properties, CA DRE 01446685. I list and sell homes. I do not buy them. I’m not an attorney, CPA, or financial advisor, and this article is general information, not legal or tax advice. I work with trusted attorneys, tax professionals, and financial advisors and I’m glad to introduce you.