Seller guide

Selling a home
you inherited.

This usually arrives at a hard time, with siblings in three states and a house full of a lifetime's belongings. The real estate part is manageable, as long as the title work starts early.

First question: can you legally sell it yet?

A title company will not close until the ownership chain is clear. Depending on whether there was a will, how the property was held, and who the heirs are, that might mean probate, an affidavit of heirship, a small estate affidavit, or a transfer on death deed already on file. Texas has several paths and they differ a lot in time and cost.

Start this conversation with a title company and, where needed, an attorney before you list. Discovering a title problem after you have a buyer costs you that buyer.

The tax piece people get wrong

Inherited property generally receives a stepped-up basis to its value at the date of death, which often means far less capital gains tax than heirs expect when they sell soon afterward. Get an appraisal or a documented valuation as of that date. Confirm your own situation with a CPA — this is one place where good advice pays for itself many times over.

Also note the property taxes change. An exemption that belonged to the person who passed, including the over-65 exemption and its ceiling, does not simply continue for heirs who do not live there.

Agree on the plan before the emotions do

• Who has authority to sign, and who is just an interested party?
• Sell as-is, or spend on paint, flooring and cleanout first?
• Who fronts the carrying costs — taxes, insurance, utilities, lawn — until it closes?
• How are proceeds divided, and is anyone buying out the others?
• Is anyone living in the house now?

As-is versus prepared

Investors will make as-is offers quickly, and sometimes that certainty is worth the discount, especially with heirs spread out and a house that needs real work. Often, though, a cleanout, a deep clean and a few cosmetic fixes return much more than they cost. A pricing analysis both ways makes the decision for you, without the guesswork.

Disclosures still apply

An heir who never lived in the home has limited knowledge of its condition, and Texas accounts for that, but you still disclose what you do know. Honest paperwork protects you after closing.

Selling representationWhat is it worth?Pricing and prep

This article is general information, not legal, tax or financial advice. Rules, programs and local requirements change — confirm the details with your lender, attorney, title company, county office or another qualified professional.