Selling an Inherited Property in Florida

Inheriting a house can be hard both emotionally and financially. Does the home need costly repairs or upgrades? What about the taxes you’ll need to pay? Is there a will, or will you have to go through probate? On the flip side, inherited homes can be a fantastic chance for real estate investors and buyers looking for a property at a lower price that they can personalize. So, what does it take for someone to sell an inherited house? Are there specific steps to follow for this type of sale? This article will break down how to sell an inherited property to help you (hopefully) earn some profit.

How To Sell An Inherited Property in Florida

So you’ve inherited a property and you’re not sure what happens next. In most states, the inherited property must go through a probate process so the courts can determine who is the legal owner. Probate is a legal process in which the Court legally transfers ownership of the estate’s assets to one or more beneficiaries and/or Heirs. Depending on the state of the will (if there was one), this process can be very fast or very slow.

Determine the Executor

For inherited properties with a will, establishing the executor of the estate should be straightforward. One of the most important aspects of a will is establishing an executor that is able to carry out the deceased’s wishes through the process of probate.  Any assets listed in a will can’t be sold until the will is validated by the Court but, once approved, the executor of the will is allowed to act on the wishes of the deceased. But if the will is contested or there is no will, the process might take longer as the Court gets involved. 

The probate court will appoint someone not associated with the family as an administrator to the estate. These administrators play a similar role as an executor; they are responsible for carrying out the wishes of the deceased as stated in the will, as well as paying off any of the estate’s debts and distributing any assets. They may also determine if any real estate assets will need to be sold to pay off the estate’s debts, including back taxes, mortgages, etc.

Working with Lawyers and Real Estate Agents

When you are dealing with real estate, it’s important to have the right help. Lawyers and real estate agents are key team members who can make the process smoother.

A good real estate agent knows the local market well. They can help you price your home right and attract buyers. They also know how to market your property to get it noticed. A skilled agent will handle many tasks, like showing your home and negotiating offers, so you don’t have to worry too much.

On the other hand, a lawyer can help you with the legal side of selling your home. They will review contracts and make sure everything is in order. This is important because it protects you from potential legal issues. They can also answer any questions you have about documents and what to expect in the process.

By working together, real estate agents and lawyers can provide you with the support you need for a successful sale. This teamwork ensures that you get the best price for your home while keeping everything legally sound.

Selling a home during probate can be tricky, which is why it’s important to have a knowledgeable lawyer by your side. Once you get the green light from the probate court to sell the house, the next smart move is to team up with a real estate agent who has experience with inherited properties. An agent who knows the ins and outs of probate sales will be aware of the specific rules and details involved. They can assist you in finding the right buyer, ensuring you get the best price for the home. Additionally, they can guide you on what repairs or upgrades are truly worth your time and money, as opposed to what isn’t worth it. Following their guidance can mean the difference between a quick, profitable sale and a property that lingers on the market, ultimately selling for less than it should.

Resolve Any Debts

When you think about “inheritance,” do you picture a mysterious great-aunt giving you a lavish mansion in the woods, or do you realize the truth about handling a property that could have liens on it, unpaid taxes, and a mortgage that makes it hard to earn a profit? Unfortunately, losing a loved one often means facing their debts, like taxes, mortgages, or credit card bills. Before you can enjoy any part of the estate, those debts must be settled first. While a house might seem like a valuable asset, it can quickly turn into a costly burden. A skilled estate advisor can guide you in exploring your choices for managing an inheritance.

Clean & Restore the Home

Once ownership has been decided and the property is considered yours, your next step will be to decide whether you want to live in it, rent it out, or sell it. Many times, when a loved one passes they leave behind a house that is not in the best of shape. Whether the property hasn’t been kept up in the past decade and needs major cleaning and repair, or there were never any upgrades done and the house will need to be completely renovated to make it “market ready”, this is the part of an inheritance that is often forgotten about.

Do all heirs have to agree to sell the property?

No, the Heirs don’t have to agree to sell an inherited house or property if ownership has been established by a will or the probate court. But if ownership has not been established, such as with an estate with no will and/or a Court-appointed administrator, then all Heirs must agree to the sale. This also includes properties that have been put up at auction by the Court to pay off the estate’s debts. If a buyer purchases a house at auction but one or more of the Heirs disagree with the sale, the purchase must be put on hold while the disagreement is worked out and a settlement is reached.

How to Settle a Disagreement

When Heirs disagree about an estate, there are several ways to resolve the issues. The first thing to do is to ensure that someone has been named as the executor. This person is responsible for following the wishes of the deceased as outlined in the will, which can help prevent conflicts over how the assets should be handled. If there’s no executor or if the will is being challenged, the next step might be to bring in a mediator. A mediator is a neutral person who can help settle differences, and this option is usually much cheaper than going through a legal fight in probate court.

Best Practices

But what if the issue is around the executor themselves? Disputes can occur when a family member is named as the executor or trustee of a will, causing strife with the other family members. If this has happened to you, an option is for the person to decline the appointment and choose an independent fiduciary, such as an estate-planning attorney, to administer the will. Stepping back while a neutral party steps in might not just keep arguments from cropping up, but might also give everyone the time and space to deal with difficult emotions before it permanently damages your family. 

How is inherited property taxed when sold?

In 2024, state and local governments in the U.S. brought in more than $5.3 billion from estate and inheritance taxes. That’s a huge amount! However, since tax laws can vary greatly from one state to another, it’s important to research your specific situation. It’s a good idea to reach out to a lawyer who understands these taxes and estate planning, especially if you receive an unexpected inheritance or if you’re in the process of drafting your own will. 

State Tax Laws

Each state has different laws regarding inheritances. In the case of the sale of an inherited property, states may take an estate tax, an inheritance tax, as well as a capital gains tax on your inheritance. Currently, twelve states have an estate tax, 5 have an inheritance tax, and one has both an estate and inheritance tax.

Inherited Property Capital Gains Tax

What is the capital gains tax and which states require it? The capital gains tax is a fee that you pay when you sell something valuable, like a house, for more than you bought it. This tax applies only after you sell the property, not when you receive it as an inheritance. You pay the tax based on how much more you sold it for compared to what you paid initially. Most states make you pay this tax on inherited properties, but there might be exceptions for people selling a home for less than a certain amount. For example, in Washington State, if you sell a house for under $250,000, you won’t have to pay the capital gains tax. There could also be other ways to lower or avoid this tax in your state, like using the money to buy another property. It’s a good idea to talk to a tax lawyer who knows the local laws before you sell your property.

Estate Taxes

An estate tax is a tax paid directly out of the estate to the state before anyone is able to inherit it. Worried that you might get a huge hit taken from the estate? Don’t worry! The estate tax has a minimum threshold which in 2024 was $12.92 million for individuals. This means that the government is not able to charge you an estate tax unless your total taxable estate is worth $12,920,001. The remainder is passed on estate tax-free. Despite having such a high threshold, each year more states repeal their estate tax laws, losing out on millions of dollars of revenue.

Inheritance Taxes

Only six states impose an inheritance tax, which means most people are in the fortunate group that doesn’t have to worry about this. However, if you reside in one of these states—Maryland, Nebraska, Kentucky, New Jersey, Pennsylvania, or Iowa—you’ll need to pay taxes on the assets and properties you inherit. But there’s good news! Even if you live in a state with an inheritance tax, you won’t owe anything if the person who passed away was a resident of one of the 44 states that don’t have this tax.

Documents needed to sell inherited real estate

To prove you own a property and get it ready for sale, you must have a copy of the court documents that give you the legal right to act as the executor or administrator of the estate. These papers show that you can handle the inherited property. Once you find a buyer and are set to finalize the sale, you’ll need the deed, title insurance, or other important legal documents to prove you legally own the inherited property.

Make sure to check what extra documents might be necessary to sell an inherited property! In some areas, you might need additional paperwork related to the property, like past surveys, inspections, or any other important documents that relate to the property’s condition or history.

Is there an easier option to sell?

Absolutely! Florida Offer is a trusted home buying company known for purchasing inherited properties for cash, making the process simpler and more affordable. Reach out to us today for a fair cash offer on your inherited house, condo, or property. We buy homes in any condition, and we can assist you with the tricky steps of selling a house in probate! Our goal is to make your home selling process easy and stress-free so you can focus on what matters most to you.

Even if the house has been damaged in a recent storm or has been ignored for years and requires significant repairs to be ready for the market, once you agree to our fair cash offer, our skilled team will take care of all those costly repairs for you! We simplify the process of selling an inherited house.

“Simple, Fair and Professional Process. Working with FloridaOffer.com was a seamless and stress-free experience. They were incredibly patient, fair, and professional throughout the entire process. From the initial consultation to the final closing, they made me feel confident and supported every step of the way. Selling my home was quicker and easier than I ever expected, and I’m so grateful for their expertise and dedication. I highly recommend FloridaOffer.com to anyone looking for a straightforward and successful home-selling experience!”

Clarence Jackson

“When we got the opportunity to move for a new job, the last thing we wanted was to be stuck dealing with the hassle of selling our home. FloridaOffer.com was a game-changer! They made us a fair cash offer and closed quickly, which allowed us to focus on our exciting new chapter instead of stressing about the sale. Their team was professional, efficient, and understanding of our timeline. Thanks to FloridaOffer.com, we were able to make the move without a hitch and start our next adventure with peace of mind!”

Pete & Jan Mitchell

“Facing foreclosure was terrifying, but FloridaOffer.com gave us hope. They acted fast, working with our lender to pause the foreclosure process. Thanks to their team, we avoided disaster and walked away with equity to rebuild. FloridaOffer.com’s expertise and compassion truly changed our lives.”

Jan Beatty

“FloridaOffer.com’s team was an absolute lifesaver! I had a vacant house with endless problems that I didn’t know how to deal with, but they stepped in and took over everything. From start to finish, they made the entire process easy and painless. Their professionalism and expertise were incredible, and they saved me from what would have been a massive headache. I’m so grateful for their help and highly recommend them to anyone needing to sell a property quickly and without hassle!”

Liam Green