Key Takeaways
- A massive wealth transfer is putting inherited property into the hands of accidental homeowners with little preparation.
- The first 30 days after inheriting a property should focus on documentation, valuation, and risk management – not rushed decisions.
- Choosing to sell, rent, or keep an inherited home depends on finances, location, and tolerance for ongoing management.
- Stepped-up cost basis significantly reduces capital gains tax exposure for most heirs.
- When holding costs and distance outweigh upside, selling quickly can be the most rational option.
Inherited property is landing in the laps of people who never planned to become landlords or reluctant sellers. Freddie Mac research from December 2024 found that baby boomers hold $17.3 trillion in home equity, with 75% planning to pass their homes or sale proceeds to their children.¹
A Fortune report citing Cerulli Associates projects a $124 trillion wealth transfer by 2048, and 62% of younger Americans expecting an inheritance anticipate receiving real estate.²
The numbers are staggering. The preparation is almost nonexistent. If you just became an accidental homeowner through a will, a trust, or a phone call you never wanted. That’s the whole point behind marketplaces such as iSpeedToLead connecting sellers in your situation with qualified buyers who close quickly and skip the runaround.
The First 30 Days: What to Do Before Making Any Decisions
The worst thing you can do with an inherited property is rush into a decision while you’re still processing the loss. The first month should be about gathering facts, not signing contracts.
Start with the paperwork. Get several certified copies of the death certificate. Find the will or trust documents. If there’s no will, your state’s intestacy laws determine who gets what, and probate can take anywhere from two months to over a year depending on the jurisdiction.
Figure out what you actually own. Order a professional appraisal based on fair market value at the date of death. Check for any mortgage, reverse mortgage, liens, or overdue property taxes. Call the insurance company and confirm coverage is active, because a gap in insurance on a vacant house is a financial disaster waiting to happen.
The inherited property question has no universal answer. Thirty days of clarity beats thirty seconds of regret.
Sell, Keep, or Rent: How to Decide What Actually Makes Sense
Once the fog lifts, you’re staring at three paths. Each one makes sense for different people in different situations, and none of them is automatically the right call.
Keeping the house works if you actually want to live in it. Federal law generally prevents lenders from calling the loan due when a family member inherits, so you can assume the mortgage or refinance into your own name. The catch: you now own the property taxes, insurance, maintenance, and whatever deferred repairs your parents quietly ignored for the last decade.
Renting creates income but also creates a job. You’re a landlord now, which means tenants, legal compliance, and management costs that typically run 8 to 10% of monthly rent. For an out-of-state heir juggling a full-time career somewhere else, the complexity adds up fast.
Selling inherited real estate offers the simplest path to cash and closure. A traditional listing with an agent takes 60 to 120 days and typically nets a higher price, minus 5 to 6% in commissions plus the cost of pre-sale repairs. A direct sale to an investor closes in 7 to 21 days with no fix-up required.
The inherited house options sell or keep decision ultimately comes down to your finances, your location, and your honest tolerance for managing property you never asked for.
The Tax Reality Nobody Mentions at the Funeral
Nobody brings up inherited property tax implications at the memorial service, but they hit hard at the closing table if you’re not prepared.
The good news: inherited property receives a stepped-up cost basis. Your tax basis resets to fair market value at the date of death, not whatever your parents originally paid. If they bought the house in 1992 for $95,000 and it’s worth $380,000 when they pass, your new basis is $380,000. Sell for $390,000 and you owe capital gains on just $10,000, not $285,000.³
Most heirs won’t owe federal estate tax either, since the current exemption exceeds $13 million per individual. Some states, however, impose their own estate or inheritance taxes at much lower thresholds. Always check the rules in the state where the property sits, not just where you live.
The hidden killer is holding costs. Property taxes, insurance premiums, utility bills, and emergency repairs on a vacant house pile up every single month. Every week you hold a property you don’t want costs real money you won’t get back. Talk to a CPA before making any moves.
When Speed Matters More Than Top Dollar
Sometimes the math is simple. Two mortgage payments, a house three states away, $40,000 in deferred repairs before any traditional buyer will make an offer. When the numbers look like that, you need to sell a house fast, and there’s zero shame in running that calculation.
Plenty of heirs reach the same conclusion. “I need to sell my house asap” is not panic talking. It’s common sense when an inherited property is draining your savings account every month while sitting empty.
If you’re figuring out how to sell inherited property fast, your options include cash buyers, real estate investors, and online marketplaces that match sellers with pre-qualified purchasers. Inheriting a house you weren’t expecting doesn’t mean you’re stuck with it forever. Whether you keep it, rent it, or sell it next week, the best outcomes start with good information, honest math, and professional advice tailored to your situation. An inherited property is just a building until you decide what role it plays in your life.
Frequently Asked Questions
What is the first thing you should do when you inherit a property?
Secure insurance coverage on the home immediately and get multiple certified copies of the death certificate. Within the first 30 days, locate the will or trust documents, order a professional appraisal at fair market value as of the date of death, and check for existing mortgages or liens. Avoid major financial decisions until you’ve spoken with a probate attorney and a CPA.
Do you have to pay taxes on an inherited property if you sell it?
Inherited property receives a stepped-up cost basis equal to fair market value at the date of death. You only owe capital gains tax on appreciation after that date, not on gains during the previous owner’s lifetime. Most estates fall well below the federal estate tax exemption. State rules vary, so confirm current rates with a tax professional before closing.
How long does it take to sell an inherited house?
Timeline depends on probate status, property condition, and your chosen sale method. Probate itself can run 2 to 12 months depending on the state. Once you have a clear title, a traditional MLS listing averages 45 to 90 days on market. Direct sales to cash buyers or through real estate marketplaces can close in as few as 7 to 14 days.