Steps to Selling an Inherited Property in California

3. With multiple heirs, choose a personal representative

When multiple heirs are involved, you’ll need to identify all parties and select an official executor. In some cases, the deceased homeowner will name an executor in their will. If not, the heirs must all agree on who this person should be.

In California, the executor is generally known as the personal representative. This individual will have the authority to make legal and financial decisions about the property and is tasked with its overall upkeep and security until it’s sold.

The chosen personal representative should be someone who is emotionally and practically equipped to handle all the responsibilities involved. They must also be prepared for disagreements.

“Unfortunately, this happens on inherited properties,” Ahern cautions. “Beneficiaries don’t agree with each other. There could be litigation, which is going to take money from everyone’s inheritance, which is a very unfortunate thing.”

If you find yourself in this situation, Ahern offers this advice: “Try your best to communicate with the other beneficiaries upfront so that everyone’s on the same page. Even though there’s only one decision-maker on paper, that still doesn’t mean that the other beneficiaries can’t take legal action. So I would just do my very best to communicate from the beginning, so you can avoid any litigation.”

4. Open an estate account to manage assets

Ahern also advises transparency and good record-keeping. The personal representative can set up a bank account in the name of the deceased’s estate. This account can temporarily hold all inheritance-related assets, including any proceeds from the sale of the property and any other income.

The estate account can also used to pay off any unpaid financial obligations that the deceased may have, such as mortgage loan payments, California property taxes, and any expenses related to the probate process.

5. Get a property assessment

You will want to know the value and condition of the inherited California home. Once you have legally taken ownership, consider hiring a professional home appraiser and home inspector. To get a ballpark estimate of what the house might be worth, start with a free online value assessment using HomeLight’s Home Value Estimator tool.

Another option is to contact an experienced Realtor who can provide you with a comparative market analysis (CMA). This is a detailed report that uses data from recently sold homes in the area to give you a real-world selling price.

6. Select a selling method

“I sell a lot of inherited properties through my relationships with trust attorneys, estate attorneys, fiduciaries, and court receivers,” Ahern says. “One common challenge is the property is very in need of repairs. It has a lot of deferred maintenance. So the person deciding or controlling the sale can decide to sell it as is by selling it to an investor.”

However, Ahern says going the traditional home sale route will make you more money. “Come up with a game plan to fix the property up — new paint, perhaps new flooring, maybe a new kitchen or repair the bath. That way, you ensure that the beneficiaries are going to net the most money.”

Let’s take a closer look at both of these selling methods:

Sell as-is to a cash buyer investor: Selling your inherited California home on the market often requires extensive time and effort, including repairs, staging, marketing, and back-and-forth negotiations with buyers. During this time, heirs are typically responsible for all ongoing expenses like mortgage payments, required property taxes, and all utility bills.

For a much faster sale, you might consider selling the house as-is directly to a cash buyer investor. While this option will likely result in a lower sale price, it offers unmatched speed and convenience, especially if you’re trying to manage the inherited home from out of state. HomeLight’s Simple Sale platform provides a no-obligation, all-cash offer in 24 hours, allowing you to skip repairs and close the sale in as little as 10 days.

Partner with a top agent: If you prefer Ahern’s second, more profitable suggestion to list the house on the market, hire a seasoned real estate agent with experience in probate sales. This option can maximize the proceeds for all the heirs. HomeLight’s free Agent Match tool can connect you with local agents who specialize in probate sales and have the highest sale-to-list ratios.

A top agent can also help ease the stress of selling an inherited home. While any home sale can be emotionally challenging, the right agent can simplify the process and provide peace of mind.

7. Consider using a mediator

As Ahern pointed out, when multiple heirs are involved, disagreements can arise.

“In all my 20-plus years practicing real estate, I’ve experienced it all,” he says. “I’ve seen when beneficiaries are fighting and suing each other. That’s why having good communication from the beginning is so important.”

If your family is struggling to agree on the home sale, a mediator can help provide unbiased communication and resolve conflicts. They can also assist in finding solutions to disputes over the sale, such as disagreements on which repairs to make, selecting a real estate agent, or how to handle renting tenants. Enlisting the help of a mediator can also save time and reduce expenses.

For example, one heir might be reluctant to sell the home due to sentimental attachments or disagreements over the selling method or price. A neutral mediator can help the family reach an acceptable compromise.

8. Donate, discard, or sell unwanted items

Ahern explains that one of the challenges with an inherited house is figuring out what to do with all the stuff. One way to tackle this challenge is to create a decluttering plan with other heirs and family members.

Depending on the size of the estate, you may even want to hire a professional estate sale company to manage and promote an estate sale. You may want to sell select items individually through a traditional yard sale and by using online platforms like Facebook Marketplace, Craigslist, and OfferUp.

Although decluttering a loved one’s longtime home can be emotionally challenging, it’s a crucial step if you are looking for a fast and successful sale (and higher proceeds). According to top real estate agents surveyed by HomeLight, decluttering can bring in up to $8,000 more on your final selling price.

9. If selling on the market, prepare the home for sale

When preparing your inherited home for sale, you’ll want to focus on light, cosmetic improvements rather than extensive renovations. It’s best to consult a top real estate agent before making any upgrades or repairs. They’ll know what upgrades local buyers want and which fixes can increase the home’s value and marketability.

With the right guidance, even small, strategic investments can make a big difference These might include professional deep cleaning, interior or exterior paint, yard work, and enhancing the main entryway to boost buyer curb appeal. A seasoned local agent can also provide expert advice on what not to fix.

Here are some simple, high-impact projects to help sell your inherited California house faster:

• Hire a landscaper to clean up the lawn.
• Add fresh mulch and flowers.
• Give the front door a fresh coat of paint.
• Replace aged carpet and linoleum with vinyl wood flooring.
• Remove worn furniture covers, window valances, and other dated items.
• Paint walls in a light, neutral color (a high ROI improvement).
• Replace broken fixtures such as light switches, knobs, and handles.
• Fix leaks and apply new caulk to showers and sinks.

10. Now you can sell your inherited property

Once the home and property are decluttered and it’s ready for market, it’s time to list and sell. Work with your agent to set a competitive list price and create an effective marketing plan. This will include professional photos, virtual tours, and listing the home on multiple online platforms.

A good agent will guide the entire process. They’ll schedule and conduct open houses and showings, negotiate purchase offers, and handle all the paperwork involved in the sale, including required California disclosure forms.

If you decide the selling method that works best for you is an all-cash offer through a platform like Simple Sale, you can get started by answering a few questions about the home and your selling timeline. You’ll receive a no-obligation cash offer within 24 hours.

Ready to sell your inherited property in California?

Selling an inherited house in California can be a complex process, but with the right expert guidance, it can shift from a daunting burden to a financial blessing — and possibly emotional healing and closure.

Whether you need an experienced agent or are looking for a simple, speedy cash offer, HomeLight can help.

Use HomeLight’s Agent Match tool to connect with top-rated agents experienced in probate sales. Or if you prefer a fast, convenient sale, use HomeLight’s Simple Sale platform to request a no-obligation cash offer.

Ahern offers these closing thoughts: “If you inherit a property, reach out to an expert. If you have a trust attorney or an estate attorney, ask them for a contact to talk to a real estate professional. If the property has deferred maintenance, you can sell it as-is for cash to an investor. Or you could go to option B where you invest some money into the property so you end up making more money.”

Header Image Source: (Roger Starnes Sr/ Unsplash)