When someone inherits a house unexpectedly, the first question is often: What now? The property might be in another state, need repairs the new owner can’t handle, or present a sales process they’ve never navigated before.
Rick Warner, founder of The WE Group at Compass, has spent 21 years specializing in probate and trust real estate sales in Marin and Sonoma County. Through dozens of transactions, he’s seen where families get stuck and what actually works. Here’s a practical breakdown of how selling an inherited home unfolds – and the common pitfalls that can cost time and money.
Step 1: Confirm Who Has Legal Authority
Key Players: Executor or trustee, estate attorney, heirs
Timing: Weeks to months, depending on estate paperwork
Common Sticking Point: Many people don’t realize they’ve been named executor or trustee until after a death occurs. The first step is to confirm who has legal authority to sell the property, which requires reviewing the will or trust and consulting an estate attorney to understand your responsibilities. Delays often happen when paperwork is missing or roles are unclear.
Step 2: Assess the Property’s Condition
Key Players: Executor/trustee, real estate agent, contractors, or inspectors
Timing: A few days to a week for an initial evaluation
Common Sticking Point: Inherited homes often need repairs or updates, and out-of-town heirs may have no idea what’s required or what it will cost. Warner’s team coordinates inspections and contractor estimates to create a realistic plan, so the executor doesn’t need to travel repeatedly or attempt to manage repairs remotely.
Step 3: Decide Whether to Sell As-Is or Make Repairs
Key Players: Executor/trustee, agent, possibly other heirs
Common Sticking Point: Heirs often disagree on whether to invest in repairs or sell quickly. Some want to maximize the sale price with upgrades; others prefer a fast, uncomplicated sale. Warner’s team offers to handle everything from painting to staging, which relieves pressure on families dealing with grief or distance. This decision can affect both the timeline and the sale price.
Step 4: Set a Price
Key Players: Executor/trustee, agent, possibly an appraiser
Timing: Several days to analyze comparable sales and determine pricing
Common Sticking Point: Executors often overvalue the home, relying on outdated estimates or emotional attachment. In today’s flat market in Marin and Sonoma, overpricing leads to listings that linger and lose buyer interest. Warner bases pricing on recent comparable sales and the property’s current condition to attract serious buyers immediately.
Step 5: Market and Show the Home
Key Players: Agent, stagers, photographers, buyers
Timing: Two to four weeks of active showings
Common Sticking Point: Many executors think they must be present for showings or oversee marketing, but a competent agent handles scheduling, staging, buyer questions, and filtering offers. Warner’s team collaborates with local partners when properties fall outside its core area, ensuring the executor stays informed without being overwhelmed.
Step 6: Negotiate and Accept an Offer
Key Players: Executor/trustee, agent, buyer’s agent, possibly heirs
Timing: Offers may come within days or take weeks, depending on market conditions
Transaction Detail: Buyers typically submit an earnest money deposit of 1% to 3% of the sale price
Common Sticking Point: Executors sometimes accept the first offer without understanding the terms or realizing that they may have room to negotiate. In a market with fluctuating demand, some homes attract bidding wars, while others require price reductions. Warner emphasizes the importance of reviewing each offer’s details – including financing, contingencies, and closing timelines – before making a decision.
Step 7: Handle Inspections and Appraisals
Key Players: Buyer’s inspector, lender’s appraiser, executor/trustee, agent
Timing: One to two weeks after offer acceptance
Common Sticking Point: Buyers may request repairs after inspections, which can stall or derail the sale if expectations aren’t managed. In Marin and Sonoma, sellers often decline repair requests and prefer to move to the next buyer. Warner advises pricing homes appropriately for their condition and making clear from the outset that the sale is as-is.
Step 8: Close the Sale
Key Players: Executor/trustee, agent, buyer, escrow officer, possibly estate attorney
Timing: Typically 30 to 45 days from accepted offer to closing
Common Sticking Point: Executors sometimes overlook closing costs, capital gains taxes, or existing liens. Warner recommends reviewing all fees and obligations with both the agent and estate attorney before signing. After closing, proceeds go into the estate and are distributed according to the will or trust.
The Bottom Line
Selling an inherited home is a detailed process with many opportunities for missteps, especially for those unfamiliar with real estate or managing an estate from afar. Knowing what to expect, what questions to ask, and where to seek help can save significant time and avoid expensive errors. A good real estate team will manage every step of the process for clients, reducing the burden on families during a difficult time.
About the Expert: Rick Warner is Founder and Team Leader of The WE Group at Compass, specializing in probate, trust, and divorce real estate transactions in Marin and Sonoma County. He is certified in trust and probate sales and regularly works with fiduciaries and estate attorneys across California.
This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.
