Inheriting a home is definitely a blessing! However, it can also present some challenges—especially when you’re not sure what to do with it. Whether you’ve recently inherited a property in Los Angeles or you’re helping a family member navigate the process, selling an inherited home comes with emotional and financial decisions. The good news? You have plenty of options. And with the right guidance, the process can be smoother than you might expect.
In this post, we’ll break down everything you need to know about selling an inherited home in LA—from probate to practical steps—and answer some common questions along the way.
Step 1: Understand the Probate Process (if applicable)
If you inherited a home through a will, it often has to go through probate before it can legally be sold—unless the property was held in a trust or had joint ownership with rights of survivorship.
Probate is a court-supervised legal process for distributing the deceased person’s estate. In California, this can take anywhere from a few months to over a year, depending on the complexity of the estate and whether anyone contests the will. To learn more about the probate process, we’ve put together a 2025 guide to navigating probate in California.
✅ TIP: If you’re unsure whether the property is in probate, check with an estate attorney or the county court where the person lived. A probate sale has special rules and requires court approval, so it’s important to get clarity early on.
Step 2: Decide If You Want to Keep or Sell the Propert
Once you’re legally able to make decisions about the home, you have three options:
- Keep the home (live in it or rent it out)
- Sell the home
- Transfer it to another family member
If you’re leaning toward selling, consider the following:
- Is the house paid off, or does it still have a mortgage?
- Are you emotionally ready to let it go?
- Will repairs or clean-out be needed before selling?
- Are you the sole heir, or will you need to coordinate with siblings or other relatives?
Step 3: Clean Out and Prepare the Home
One of the toughest parts of selling an inherited home is cleaning it out—especially if your loved one lived there for decades. It can be emotionally draining and time-consuming.
Common challenges include:
- Sorting through personal belongings
- Clearing out furniture and years of accumulated items
- Dealing with needed repairs or upgrades
- Managing deferred maintenance
If the property is in poor condition, you don’t have to fix everything. Many sellers choose to sell the home as-is to an investor or cash buyer who can take on the work.
Step 4: Understand the Tax Implications
Good news: when you inherit a property, you get a stepped-up tax basis—which means you’re only taxed on the gain in value from the date you inherited it to the sale price.
🔍 Example:
If your parent bought the house for $100,000 in 1980 but it was worth $600,000 when you inherited it, and you sell it for $615,000, you may only be taxed on the $15,000 gain (not the full increase from the original purchase price).
That said, you should always talk to a CPA or estate attorney to understand how capital gains tax, inheritance tax, or property taxes may affect your specific situation—especially in California, where Proposition 19 may limit your ability to transfer property tax benefits.
Step 5: Choose How You Want to Sell
Once you’ve figured out the legal aspects and prepared the home, the next big decision is how you want to sell. The right choice depends on your timeline, the condition of the property, and how involved you want to be in the process.
Here are the three main ways to sell an inherited home in Los Angeles:
Option 1: List With a Real Estate Agent
This is the traditional route and a good fit if the home is in fairly good condition and you’re aiming to get top dollar.
Pros:
- Potential to get the highest sale price
- Professional marketing and listing exposure (MLS, Zillow, Redfin, etc.)
- Help with paperwork, negotiations, and showings
Cons:
- You’ll likely need to make repairs or upgrades
- Prepping the home for showings can be time-consuming
- You’ll pay 5–6% in agent commissions
- Closing can take 30–90+ days
🔍 Example:
If you inherited your parents’ home in Pasadena and it’s in great shape, an agent could help you market it to families looking to buy in that neighborhood, potentially getting you top dollar.
Option 2: Sell to a Cash Home Buyer
This is the best option if you want a quick, hassle-free sale—especially if the home needs repairs or you’re dealing with a messy probate situation.
Pros:
- Sell the home as-is—no repairs, cleaning, or inspections
- No agent fees or closing costs
- Fast closing (as little as 7–14 days)
- Simple paperwork and flexible terms
Cons:
- Offer may be lower than full market value
- Not every buyer is reputable—so do your homework
🔍 Example:
Let’s say you inherited a house in South LA that hasn’t been updated since the ‘70s and still has everything inside. A cash buyer like us could make you an offer in a day or two, handle the clean-out, and close quickly—saving you months of time and thousands in holding costs.
💡 At Mrs. Property Solutions, this is our specialty! We buy inherited homes across Los Angeles in any condition—even hoarder houses, probate properties, or those with tenants.
Option 3: For Sale By Owner (FSBO)
If you’re confident handling the sale yourself, FSBO allows you to avoid paying commission fees and take control of the process. This can be ideal if the house is in decent condition and you already have an interested buyer—or if you’re comfortable negotiating and filling out legal paperwork.
Pros:
- Save on real estate commissions
- Full control over pricing, showings, and negotiations
- Good option if you already have a buyer lined up (like a neighbor or investor)
Cons:
- You’ll need to handle all the paperwork yourself (disclosures, contracts, etc.)
- May be harder to market the home effectively
- Can be emotionally draining, especially if it’s a family home
- You might sell for less than you would with a professional’s help
🔍 Example:
You inherited a small house in Burbank, and a neighbor has already expressed interest. If you’re comfortable handling the transaction directly (and maybe using a real estate attorney to help with the contract), FSBO could be a straightforward and cost-effective option.
Common Questions About Selling an Inherited Home
❓Can I sell an inherited home before probate is complete?
Usually not. If probate is required, you’ll need to wait until you have legal authority (either as the executor or through court approval) to sell. Some investors may be willing to start the process and wait until probate closes.
❓Can I sell my deceased parents’ house without probate?
In some cases, yes. If the house was held in a living trust, or if it had joint tenancy with right of survivorship, probate may not be needed. California also allows a simplified process called a Small Estate Affidavit for estates under a certain value. Otherwise, full probate is usually required.
❓What happens if multiple people inherited the house?
All heirs must agree to the sale. If one heir wants to keep the home or doesn’t agree with selling, it can delay or prevent the sale. In some situations, one heir can buy out the others, or a court may need to get involved to resolve the issue.
❓Do I have to pay capital gains tax on an inherited property?
You may—but only on the increase in value from the time you inherited it to the time you sold it, thanks to the stepped-up basis rule. This often minimizes or eliminates capital gains tax if the sale happens soon after inheritance.
❓How do I avoid capital gains tax on an inherited house?
Here are a few strategies:
- Sell quickly after inheriting it, before the property appreciates further.
- Rent it out and do a 1031 exchange later, if used as an investment.
- Live in it for 2 out of 5 years to qualify for a primary residence exclusion (in some cases).
Always consult a tax advisor to see which options are available based on your situation.
❓Do I have to report the sale of an inherited home to the IRS?
Yes. Even if no tax is owed, you must report the sale on your taxes using Form 8949 and Schedule D to document the sale and any gain. Your cost basis is the home’s fair market value at the time of inheritance.
❓Is it better to fix up the house or sell it as-is?
That depends on the condition of the property and your goals. If you have the time and money to make improvements, you might get a higher price. But many sellers find it’s easier and faster to sell the home as-is—especially if it needs a lot of repairs or has deferred maintenance.
Need to Sell an Inherited House in Los Angeles? We Can Help.
At Mrs. Property Solutions, we’ve worked with many families across Los Angeles who needed to sell an inherited home quickly and without the stress of repairs, cleaning, or agents. We can help you navigate the process from start to finish so that you can be confident of the process every step of the way.
We offer a fast and fair cash offer whether the home is in probate, needs a full clean-out, or you’re dealing with out-of-state siblings, we’re here to make the process easier for you.
👉 Reach out today for a no-obligation offer and see if selling your inherited home for cash is the right move for you. You can also get started by filling out the form below.