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I Inherited a House — What Do I Do First?
The first steps after inheriting a house are to confirm whether it must go through probate, find out who has legal authority to act, and secure the property — insurance, utilities, and protection against vacancy — before making any decision to keep, rent, or sell. Rushing to "just sell it" is the most common and costly mistake. This checklist walks you through what to settle first and hands you a prioritized list for your exact situation.
Tell us about your situation
Legal & authority
Probate status
Who has authority to sell?
Attorney involved in the estate?
Heir alignment
Property condition & risk
Homeowner's insurance
Is the property occupied or vacant?
Utilities
Cleanout / contents removal needed?
Known repairs needed?
Financial & market
Mortgage status
Independent value opinion obtained?
Cash offers already received?
Your first steps
Answer the status questions on the left to get a prioritized action list for your exact situation.
The universal five — regardless of situation
- Confirm or obtain insurance on the property
- Secure the property against vacancy risk
- Establish who has legal authority to act
- Confirm probate status with an attorney
- Get an independent value before talking to any buyer
Worked Example
A vacant, lapsed-insurance property with a cash offer already on the table
A homeowner inherits a property from a parent. Probate not started. Vacant since last fall. Insurance lapsed. A wholesaler left a cash offer the week of death. Here's how the checklist prioritizes.
| Question | Status | Priority assigned |
|---|---|---|
| Insurance | Lapsed | TOP Get insurance today |
| Vacancy | Vacant | TOP Secure the property |
| Probate | Not started | HIGH Confirm if probate required |
| Value opinion | No | CAUTION Get value before responding |
| Cash offer received | Yes | FLAG Don't sign — no authority yet, no value yet |
| Result | 5-step plan generated, offer deferred pending probate + value | |
Illustrative example for educational purposes. Not legal or tax advice. Individual results vary.
Why order matters as much as action
Inheriting a property creates an unusual kind of pressure: emotional weight plus financial urgency plus legal deadlines you may not even know exist. The typical result is one of two mistakes — paralysis (nothing gets decided for months while the property deteriorates) or rush (accepting the first offer from the first buyer who appears during a difficult week).
The five steps above exist to prevent both. Insurance and property security come first not because they're most financially significant, but because they're time-sensitive in a way that legal steps aren't — a pipe that bursts in a vacant house does damage that probate can't undo. Legal authority comes next because almost everything else — selling, refinancing, renting — requires it.
Value before any offer. The most expensive mistake in inherited-property sales is pricing off a cash buyer's offer. Buyers who approach heirs during bereavement count on the heir not knowing the market value. A $180,000 cash offer feels generous until a market opinion shows the property would list at $260,000. The checklist flags this combination — offer received + no value opinion — because it's where the most money is routinely left behind.
Heir alignment before any contract. A signed purchase contract where one co-heir refuses to execute the deed leaves the estate in breach of contract. Getting all heirs on the same factual footing — with the same numbers, the same timeline, and the same exit options — is the work that makes every subsequent step faster and cheaper.
Common questions
Do I need to go through probate before selling?
Usually yes — if the property was solely in the decedent's name and there's no transfer-on-death deed, living trust, or joint tenancy with right of survivorship, the estate typically must go through probate before title can legally transfer to a buyer. The exception is property that passes automatically by operation of law. A probate attorney can tell you which applies in your situation, usually within one conversation.
Who can sell an inherited house?
The person with legal authority depends on how the estate is structured. If there's a will, the executor (personal representative) has authority once the probate court opens the estate. If there's no will, the administrator appointed by the court has authority. If the property passed by joint tenancy or beneficiary deed, the surviving owner or beneficiary has direct authority. If multiple heirs inherited equal shares, all must typically agree to and sign any sale contract.
What if the heirs disagree about selling?
A disagreeing co-heir can block a sale by refusing to sign the deed. The practical first step is ensuring all heirs have the same factual information — current market value, carrying costs, and net proceeds from each exit path. Most disagreements dissolve when all parties see the same numbers. If genuine deadlock continues, a court can order a partition sale, but that process is slow and reduces net proceeds for everyone. Getting aligned early is always cheaper than litigation.
Is there a step-up in basis for an inherited house?
Generally yes — inherited property typically receives a step-up in cost basis to fair market value at the date of death. This means capital gains on a prompt sale are calculated from the date-of-death value, not the original purchase price, which can significantly reduce tax exposure. The rules are complex and vary by titling and estate structure. Consult a CPA before making any sale decision where tax treatment matters.
What should I do first with a vacant inherited house?
Vacancy is your most urgent physical risk. Within the first week: (1) confirm or obtain homeowner's insurance — many standard policies lapse or exclude vacant properties after 30–60 days; (2) secure all entry points; (3) shut off water to prevent pipe damage; (4) maintain basic utilities if weather or security require it; (5) arrange periodic walk-throughs. Municipal fines and insurance citations for unkempt vacant properties can add costs before you've made any decision.
Related tools for inherited-property decisions
General information only — not legal or tax advice. Consult a licensed Maryland real estate attorney and a CPA before making estate-related decisions.
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