Seller Guides
Inherited a House? Here's What to Do Next
Step-by-step guide for heirs dealing with an inherited property — from title transfer to sell-vs-keep decisions.
Common questions
What people ask about inherited
Real questions from buyers, sellers, and homeowners in the Hudson Valley — answered clearly so you can move forward with confidence.
I inherited a property — what are my options?
You can keep it as a primary residence, rent it out for income, sell it immediately, or hold it for potential appreciation. The best choice depends on your financial situation, the property's condition, and your long-term goals.
What is a stepped-up basis and how does it help me?
When you inherit property, your tax basis is stepped up to the fair market value at the date of the previous owner's death. This means you only pay capital gains taxes on appreciation that occurs after you inherited it, not the entire ownership period.
Do I have to pay the existing mortgage on an inherited property?
If the property has a mortgage, the estate or heirs are responsible for payments. Federal law (Garn-St. Germain Act) prevents lenders from calling the loan due when property transfers to an heir. You can continue making payments, refinance, or sell to pay it off.
What if the inherited property needs significant repairs?
Assess repair costs against the property's potential value. Sometimes selling as-is to an investor is the most practical path, especially if the estate lacks funds for renovations. Get estimates before deciding — the gap between as-is and repaired value guides the decision.
How do I transfer the title of an inherited property?
Title transfer depends on how the property was held. If it passed through a will, probate is typically required. Joint tenancy with right of survivorship and transfer-on-death deeds bypass probate. An attorney can determine the specific steps for your situation.
Should I rent out the inherited property instead of selling?
Renting can provide ongoing income, but consider the costs of maintenance, management, insurance, and being a landlord. If the property is not in rental condition or you are out of the area, selling may be more practical. Run the numbers before committing.
What is probate and how does it affect selling a property?
Probate is the legal process of settling a deceased person's estate. If the property was solely in the deceased's name without a trust or transfer-on-death deed, it typically must go through Surrogate's Court before it can be sold. This process takes 6–12 months in New York.
Can I sell a house during the probate process?
Yes, but the executor or administrator needs court approval in most cases. Once letters testamentary or letters of administration are issued, the estate's representative has authority to manage and sell property, subject to court oversight.
Who pays the expenses on a probate property?
The estate is responsible for mortgage payments, taxes, insurance, and maintenance during probate. These costs come from estate funds. If the estate lacks liquid assets, the executor may need to prioritize selling the property to cover obligations.
What if there are multiple heirs who disagree about selling?
When heirs disagree, mediation is often the most cost-effective path. If resolution is not possible, any heir can petition the court for a partition sale. An experienced probate attorney can guide the process and protect all parties' interests.
Do I need to make repairs to a probate property before selling?
Not necessarily. Many probate properties sell as-is to investors or buyers looking for value. The decision depends on the property's condition, the estate's available funds, and whether repairs would meaningfully increase the sale price.
Are there tax implications when selling an inherited property?
Inherited property receives a stepped-up tax basis to the fair market value at the date of death, which can significantly reduce capital gains taxes. Consult a tax professional about your specific situation, including New York State estate tax thresholds.
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