Start here: this article is part of our creative financing collection. For the full picture, read our complete guide, Subject-To Investing: How to Acquire Properties Without New Loans.
Private money enables deals that traditional financing can't support. Learn how to find private lenders, structure attractive terms, present deals professionally, and build long-term lending relationships...
Private money enables deals that traditional financing can't support.
Frequently asked questions
Can I sell an inherited house before probate is finished?
It depends on your state and how the property was titled. Property held in a living trust or passing through a transfer-on-death deed can often be sold right away, while property that must pass through probate usually needs the court to confirm the executor's authority first. Some states also allow a sale during probate with court approval, so ask the estate attorney which path applies.
How is an inherited property taxed when I sell it?
Inherited property generally receives a stepped-up basis equal to its fair market value on the date of death, so if you sell soon afterward the taxable gain is often small. Appreciation after the date of death is what creates gain. IRS Publication 559 covers the executor's reporting duties, and a CPA can price the step-up correctly.
What if the heirs disagree about selling?
All titled heirs generally must sign for a sale to close. When siblings disagree, the common paths are a buyout of one heir's share, mediation, or a partition action in court as a last resort. A direct cash sale with a firm number often settles the argument faster than a listing, because there's a concrete figure to divide instead of a hypothetical one.
Is seller financing legal for a residential property?
Yes, with limits. Federal rules under Dodd-Frank restrict how frequently an individual can seller-finance owner-occupied homes without mortgage-originator licensing, and they impose requirements on balloon terms and ability-to-repay. Most states add their own rules, so structure any owner-financed deal with a real estate attorney.
Sources & further reading
Primary sources we consulted for this article. Rules vary by state and change over time — always confirm against the original source.
- 1Publication 559: Survivors, Executors, and Administrators
Internal Revenue Service
How stepped-up basis works for inherited property and what an executor is responsible for.
- 2Probate courts and estate administration
American Bar Association
How the probate process works and when an estate can legally sell real property.
- 3Estate Tax overview
Internal Revenue Service
Federal estate tax thresholds that can apply when property transfers after a death.
About the author
David Park
Investment Portfolio Manager
David Park works with the SilverCrest Estates acquisitions team, helping homeowners across 50+ US markets understand their options and close on their own timeline.
Disclaimer: This article is for general information only and is not legal, tax, or financial advice. Real estate rules vary by state and change over time. Consult a licensed attorney, tax professional, or financial advisor about your specific situation before acting.
