1
Family First: Making Decisions Together
Inheriting a house is emotional. Before thinking about real estate strategy, take time to address the human side — family dynamics, grief, and shared decision-making.
If multiple heirs are involved, get everyone on the same page early. Disagreements about whether to sell, rent, or keep the property can delay the process by months or even years. Have an honest family meeting and discuss each person's financial situation, emotional attachment, and timeline.
Designate one person as the point of contact for the real estate process. Too many decision-makers slow everything down. The executor or administrator of the estate is the natural choice, but any trusted family member can serve this role.
Document agreements in writing. Even among loving families, misunderstandings about sale proceeds, personal property, and timeline expectations create conflict. A simple written agreement prevents most disputes.
Key Takeaways
- Hold a family meeting early to align on selling, renting, or keeping the property
- Designate one person as the real estate point of contact to avoid decision paralysis
- Document all agreements in writing — even among close family members
2
Understanding Probate and Estate Basics
Probate is the legal process of validating a will and distributing the deceased's assets. If the property was held solely in the deceased's name, it likely must go through probate before it can be sold.
In Georgia, probate typically takes 6-12 months, though simple estates can move faster. The court appoints an executor (if there's a will) or an administrator (if there isn't) who has legal authority to manage and sell the property.
Some properties bypass probate entirely: joint tenancy with right of survivorship, properties held in a living trust, or properties with a transfer-on-death deed. Check with an estate attorney to determine your situation.
Key documents you'll need: the death certificate, letters testamentary (from probate court), the property deed, and any existing mortgage documents. Gather these early — they're required for listing and closing.
Key Takeaways
- Georgia probate typically takes 6-12 months — start the process immediately
- Properties in joint tenancy, living trusts, or with TOD deeds may bypass probate entirely
- Gather death certificate, letters testamentary, deed, and mortgage docs early
3
Determining the Property's True Value
Inherited properties are often older homes that haven't been updated in years. Determining fair market value requires a realistic assessment, not emotional attachment to what the home "used to be worth."
A Comparative Market Analysis (CMA) from an experienced local agent is the best starting point. The agent will compare your property to similar homes that have recently sold, adjusting for condition, age, and updates.
For estate and tax purposes, you may also need a formal appraisal. The IRS uses the fair market value at the date of death (or an alternate valuation date 6 months later) to establish the property's "stepped-up basis" — this is critical for calculating capital gains tax.
Be honest about the property's condition. Deferred maintenance, outdated systems (HVAC, plumbing, electrical), and cosmetic issues all affect value. An agent experienced with estate sales will give you a candid assessment.
Key Takeaways
- Get a CMA from a local agent experienced with estate properties — not an online estimate
- The IRS "stepped-up basis" at date of death determines your capital gains tax exposure
- Be honest about deferred maintenance — it directly affects the realistic sale price
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4
Four Ways to Sell an Inherited Property
You have four main options for selling, each with different tradeoffs between speed, effort, and net proceeds:
Traditional Sale: List with an agent, make repairs, stage, and sell on the open market. This typically yields the highest sale price but takes 3-6 months and requires upfront investment in repairs and preparation.
As-Is Sale: List the property in its current condition without making repairs. You'll likely sell for 10-20% less than a renovated home, but you avoid the time and expense of renovations. Many buyers actively seek fixer-uppers.
Investor/Cash Buyer: Sell directly to a real estate investor for a fast cash close, often in 2-4 weeks. Expect 60-70% of market value, but with zero repairs, no staging, and no contingencies.
Auction: Hire an auction company to sell the property at a live or online event. This works best for unique properties or when you need a definitive sale date. Results are unpredictable — you might exceed expectations or sell below market value.
Key Takeaways
- Traditional sales net the most but take 3-6 months and require repair investment
- As-is sales attract fixer-upper buyers and save time — expect 10-20% less than renovated value
- Cash buyers close in 2-4 weeks at 60-70% of market value — best when speed matters most
5
Tax Implications You Need to Know
The tax situation for inherited property is different from — and often more favorable than — selling a home you've lived in.
Stepped-Up Basis: When you inherit property, your cost basis "steps up" to the fair market value at the date of death. This means if the home was purchased for $100,000 decades ago but is worth $300,000 when inherited, your basis is $300,000. If you sell for $310,000, your taxable gain is only $10,000 — not $210,000.
Capital Gains: If you sell relatively soon after inheriting (within a year or two), you'll likely owe little to no capital gains tax thanks to the stepped-up basis. The longer you hold the property, the more potential gain accumulates.
Property Taxes: In Georgia, inherited property may be reassessed at current market value, potentially increasing property taxes. If you're holding the property while deciding what to do, factor these carrying costs into your timeline.
Consult a tax professional familiar with estate property. The specific tax implications vary based on estate size, state laws, and your personal tax situation.
Key Takeaways
- Stepped-up basis means your cost basis resets to market value at date of death — usually very favorable
- Selling soon after inheriting minimizes capital gains tax exposure
- Factor in property tax reassessment and ongoing carrying costs while you hold the property
6
Preparing an Older Home for Sale
Inherited homes often need work, but you don't have to renovate everything. Focus on the improvements that matter most to buyers and skip the rest.
Safety and code issues come first: fix electrical hazards, repair structural problems, address water damage, and ensure the HVAC system works. Buyers will walk away from safety concerns — or demand huge concessions.
Cosmetic updates with the best ROI: fresh neutral paint throughout (biggest bang for your buck), new flooring in high-traffic areas, updated light fixtures, and modern cabinet hardware in the kitchen. These low-cost changes dramatically improve first impressions.
Clean out personal belongings before showing. An inherited home full of the previous owner's furniture and possessions feels like someone else's house, not the buyer's future home. Clear it out, deep clean, and let the space breathe.
Consider a pre-listing inspection. Knowing exactly what's wrong — and fixing or disclosing it — prevents surprises during buyer inspections that can kill deals.
Key Takeaways
- Fix safety and code issues first — buyers walk away from electrical, structural, and water problems
- Fresh paint, new flooring, and updated fixtures offer the best ROI for minimal investment
- Clear out personal belongings completely and deep clean before any showings
7
Marketing an Estate Property Effectively
Marketing an inherited home requires a slightly different approach than a typical listing. You're often selling a property that's older, may have deferred maintenance, and needs the right buyer.
Be transparent about the property's condition. "Estate sale" or "sold as-is" language attracts the right buyers — investors and renovation-minded buyers who are looking for opportunity, not perfection.
Professional photography is still essential, even for as-is sales. Good photos highlight the property's bones — lot size, layout, natural light, and neighborhood — while being honest about condition.
Highlight the property's potential, not just its current state. "Original hardwood floors throughout" and "large lot in established neighborhood" tell buyers there's value worth unlocking. Pair current photos with a description of what the home could become.
Price the property to reflect its condition honestly. An overpriced estate property sits on the market and raises red flags. A well-priced estate sale generates multiple offers from investors and handy buyers.
Key Takeaways
- Use "estate sale" language to attract the right buyers — investors and renovation buyers
- Professional photos are still essential; highlight the home's bones and potential
- Price honestly for condition — overpriced estate properties raise red flags and sit
8
The Selling Process: What to Expect
Selling an inherited property follows the same basic process as any home sale, with a few additional steps:
1. Establish legal authority: Complete probate (if needed) and obtain letters testamentary or court approval to sell.
2. Assess and prepare: Get a CMA, decide on repair level, clear out belongings, and clean the property.
3. List and market: Work with an agent experienced in estate sales. They'll price appropriately, market to the right buyers, and manage showings.
4. Negotiate and accept: Review offers with your agent, considering price, terms, and timeline. Counter-offer as needed.
5. Close: Complete inspections, appraisal, and title work. Estate sales may require additional court approval or heir signatures at closing.
The entire process typically takes 4-8 months from start to close, depending on probate status and property condition. Working with an experienced estate sale agent like Dean Bright can streamline every step and ensure nothing falls through the cracks.
Key Takeaways
- Estate sales typically take 4-8 months from start to close, depending on probate
- You may need court approval or all heir signatures at closing — plan for this early
- An agent experienced with estate sales prevents common pitfalls and delays