If you’re selling an inherited property in California, you may be balancing the moving scales of emotions, time, and money. You’re likely eager to get a sales contract signed and move things forward as quickly as possible.
“The first step is to find out if there was a trust or will and if the property needs to be placed into probate,” advises Jon Ahern, a HomeLight Elite real estate agent in the Bay Area with more than 20 years of experience. “That would be the first step — to figure out whether you need to get court confirmation for the sale or you do not.”
In this post, Ahern will provide real-world insights on how to sell an inherited house in California. We’ll also suggest clear steps and expert tips to help you decide which selling path is best for you.
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Editor’s note: This post is for educational purposes. If you need assistance navigating the legalities or tax implications of selling an inherited home in California, HomeLight encourages you to consult a professional advisor.
Here are the steps to selling an inherited property in California:
1. Confirm exactly where the mortgage stands
As the new owner of the house, experienced agents like Ahern will tell you it’s essential to fully understand the status of the mortgage before you take any selling steps. You need to know the outstanding balance, monthly payments, interest rate, and other existing loan terms.
You’ll also need to know if the inherited California home has any other liens or judgments, such as unpaid taxes, a home equity line of credit, or a reverse mortgage.
A title search will help determine what you need to address ahead of time and your next steps. If there is any question about whether the title was properly conveyed to the heir, you should contact an experienced estate planning attorney. They can assist with legal requirements and filing procedures in California.
2. Anticipate the ownership timeline
Even if you know you’ll inherit the California home, it may take some time before you legally own it. Your ownership timeline typically depends on how you inherited the house, whether through a probate inheritance, living trust, or a transfer on death deed (beneficiary deed).
Ahern explains that you’ll take ownership faster if you’ve inherited the property through a living trust or life estate deed because no court approval is required. This allows you to sell the property immediately or at a time that fits your objectives.
“Make sure that you are correctly authorized to make the decision of the trust for yourself and any other beneficiaries,” Ahern says, adding that if an estate plan is in place, the next steps are much easier and usually less expensive.
On the other hand, as a judicial process, probate inheritance is more complicated and can take anywhere from a few months to a year or more. How long your probate process takes will depend on the complexity of the estate.
It’s important not to sign listing paperwork and market a property until you have court confirmation that you are the new rightful owner and have the legal right to list and sell the property. If you list too early before confirming ownership, your efforts to move the sale along can actually stall or cancel a potential sale.
Pro tip: If you do find yourself in probate, the wait time can be used to clean out the inherited home and make repairs to prepare it for listing and selling.
3. With multiple heirs, choose a personal representative
When multiple heirs are involved, you’ll need to identify all parties and select an official executor. In some cases, the deceased homeowner will name an executor in their will. If not, the heirs must all agree on who this person should be.
In California, the executor is generally known as the personal representative. This individual will have the authority to make legal and financial decisions about the property and is tasked with its overall upkeep and security until it’s sold.
The chosen personal representative should be someone who is emotionally and practically equipped to handle all the responsibilities involved. They must also be prepared for disagreements.
“Unfortunately, this happens on inherited properties,” Ahern cautions. “Beneficiaries don’t agree with each other. There could be litigation, which is going to take money from everyone’s inheritance, which is a very unfortunate thing.”
If you find yourself in this situation, Ahern offers this advice: “Try your best to communicate with the other beneficiaries upfront so that everyone’s on the same page. Even though there’s only one decision-maker on paper, that still doesn’t mean that the other beneficiaries can’t take legal action. So I would just do my very best to communicate from the beginning, so you can avoid any litigation.”
4. Open an estate account to manage assets
Ahern also advises transparency and good record-keeping. The personal representative can set up a bank account in the name of the deceased’s estate. This account can temporarily hold all inheritance-related assets, including any proceeds from the sale of the property and any other income.
The estate account can also used to pay off any unpaid financial obligations that the deceased may have, such as mortgage loan payments, California property taxes, and any expenses related to the probate process.
5. Get a property assessment
You will want to know the value and condition of the inherited California home. Once you have legally taken ownership, consider hiring a professional home appraiser and home inspector. To get a ballpark estimate of what the house might be worth, start with a free online value assessment using HomeLight’s Home Value Estimator tool.
Another option is to contact an experienced Realtor who can provide you with a comparative market analysis (CMA). This is a detailed report that uses data from recently sold homes in the area to give you a real-world selling price.
6. Select a selling method
“I sell a lot of inherited properties through my relationships with trust attorneys, estate attorneys, fiduciaries, and court receivers,” Ahern says. “One common challenge is the property is very in need of repairs. It has a lot of deferred maintenance. So the person deciding or controlling the sale can decide to sell it as is by selling it to an investor.”
However, Ahern says going the traditional home sale route will make you more money. “Come up with a game plan to fix the property up — new paint, perhaps new flooring, maybe a new kitchen or repair the bath. That way, you ensure that the beneficiaries are going to net the most money.”
Let’s take a closer look at both of these selling methods:
Sell as-is to a cash buyer investor: Selling your inherited California home on the market often requires extensive time and effort, including repairs, staging, marketing, and back-and-forth negotiations with buyers. During this time, heirs are typically responsible for all ongoing expenses like mortgage payments, required property taxes, and all utility bills.
For a much faster sale, you might consider selling the house as-is directly to a cash buyer investor. While this option will likely result in a lower sale price, it offers unmatched speed and convenience, especially if you’re trying to manage the inherited home from out of state. HomeLight’s Simple Sale platform provides a no-obligation, all-cash offer in 24 hours, allowing you to skip repairs and close the sale in as little as 10 days.
Partner with a top agent: If you prefer Ahern’s second, more profitable suggestion to list the house on the market, hire a seasoned real estate agent with experience in probate sales. This option can maximize the proceeds for all the heirs. HomeLight’s free Agent Match tool can connect you with local agents who specialize in probate sales and have the highest sale-to-list ratios.
A top agent can also help ease the stress of selling an inherited home. While any home sale can be emotionally challenging, the right agent can simplify the process and provide peace of mind.
Consult With an Experienced Agent in Your Market
HomeLight’s free Agent Match tool can connect you with a top-performing agent to help you make the best decisions about selling a house you have inherited. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.
7. Consider using a mediator
As Ahern pointed out, when multiple heirs are involved, disagreements can arise.
“In all my 20-plus years practicing real estate, I’ve experienced it all,” he says. “I’ve seen when beneficiaries are fighting and suing each other. That’s why having good communication from the beginning is so important.”
If your family is struggling to agree on the home sale, a mediator can help provide unbiased communication and resolve conflicts. They can also assist in finding solutions to disputes over the sale, such as disagreements on which repairs to make, selecting a real estate agent, or how to handle renting tenants. Enlisting the help of a mediator can also save time and reduce expenses.
For example, one heir might be reluctant to sell the home due to sentimental attachments or disagreements over the selling method or price. A neutral mediator can help the family reach an acceptable compromise.
8. Donate, discard, or sell unwanted items
Ahern explains that one of the challenges with an inherited house is figuring out what to do with all the stuff. One way to tackle this challenge is to create a decluttering plan with other heirs and family members.
Depending on the size of the estate, you may even want to hire a professional estate sale company to manage and promote an estate sale. You may want to sell select items individually through a traditional yard sale and by using online platforms like Facebook Marketplace, Craigslist, and OfferUp.
Although decluttering a loved one’s longtime home can be emotionally challenging, it’s a crucial step if you are looking for a fast and successful sale (and higher proceeds). According to top real estate agents surveyed by HomeLight, decluttering can bring in up to $8,000 more on your final selling price.
9. If selling on the market, prepare the home for sale
When preparing your inherited home for sale, you’ll want to focus on light, cosmetic improvements rather than extensive renovations. It’s best to consult a top real estate agent before making any upgrades or repairs. They’ll know what upgrades local buyers want and which fixes can increase the home’s value and marketability.
With the right guidance, even small, strategic investments can make a big difference These might include professional deep cleaning, interior or exterior paint, yard work, and enhancing the main entryway to boost buyer curb appeal. A seasoned local agent can also provide expert advice on what not to fix.
Here are some simple, high-impact projects to help sell your inherited California house faster:
- Hire a landscaper to clean up the lawn.
- Add fresh mulch and flowers.
- Give the front door a fresh coat of paint.
- Replace aged carpet and linoleum with vinyl wood flooring.
- Remove worn furniture covers, window valances, and other dated items.
- Paint walls in a light, neutral color (a high ROI improvement).
- Replace broken fixtures such as light switches, knobs, and handles.
- Fix leaks and apply new caulk to showers and sinks.
10. Now you can sell your inherited property
Once the home and property are decluttered and it’s ready for market, it’s time to list and sell. Work with your agent to set a competitive list price and create an effective marketing plan. This will include professional photos, virtual tours, and listing the home on multiple online platforms.
A good agent will guide the entire process. They’ll schedule and conduct open houses and showings, negotiate purchase offers, and handle all the paperwork involved in the sale, including required California disclosure forms.
If you decide the selling method that works best for you is an all-cash offer through a platform like Simple Sale, you can get started by answering a few questions about the home and your selling timeline. You’ll receive a no-obligation cash offer within 24 hours.
FAQs on selling an inherited house in California
No, California does not have an inheritance or estate tax. However, as the heir, you do take on any debts attached to the property, such as the outstanding mortgage. In addition, depending on how long you hold onto the California home or the level of renovations you make, you may be subject to capital gains tax on the sale. Consult a tax professional for specifics based on your situation.
According to the Superior Court of California, state law says the personal representative must complete probate within one year from the date of appointment unless they file a federal estate tax. In this case, the personal representative can have 18 months to complete probate. A common timeline range in Califonia is six to 18 months.
As noted above, one of the most common pitfalls to avoid is not understanding the mortgage status. Others include neglecting proper legal procedures and failing to get a proper court valuation. Selling mistakes to watch out for include setting an unrealistic list price, skipping repairs that could increase the home’s value, and letting your emotions dictate your decisions.
Selling For Sale By Owner (FSBO) might save you up to 3% on agent fees but will likely be far more time-consuming and challenging. In the end, you may not actually save the money you expected. According to the National Association of Realtors, FSBO homes sold last year at a median of $310,000, considerably lower than agent-assisted homes with a median of $405,000 ($95,000 less). If you decide to FSBO, you’ll want to carefully research the California market and all the legal requirements.
The best time to sell an inherited house in California depends on your objectives and the home’s location. There may be a better month to sell fast vs. the best time to sell for a higher price. Many California markets are most active in the spring and summer months when buyer demand is highest. Check the best time to sell in your California city using HomeLight’s Best Time to Sell Calculator.
Top agents like Ahern recommend sellers avoid extensive renovations. Instead, they should focus on cosmetic upgrades like replacing fixtures, painting, landscaping, and minor repairs that offer high returns. See our post, “Don’t Fix These 7 Things When Selling Your House.”
Ready to sell your inherited property in California?
Selling an inherited house in California can be a complex process, but with the right expert guidance, it can shift from a daunting burden to a financial blessing — and possibly emotional healing and closure.
Whether you need an experienced agent or are looking for a simple, speedy cash offer, HomeLight can help.
Use HomeLight’s Agent Match tool to connect with top-rated agents experienced in probate sales. Or if you prefer a fast, convenient sale, use HomeLight’s Simple Sale platform to request a no-obligation cash offer.
Ahern offers these closing thoughts: “If you inherit a property, reach out to an expert. If you have a trust attorney or an estate attorney, ask them for a contact to talk to a real estate professional. If the property has deferred maintenance, you can sell it as-is for cash to an investor. Or you could go to option B where you invest some money into the property so you end up making more money.”
Header Image Source: (Roger Starnes Sr/ Unsplash)
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