Steps For Selling an Inherited Property With Multiple Owners
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Richard Haddad Executive EditorRichard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
Selling inherited property with multiple owners can feel overwhelming at first. When multiple heirs share ownership, making decisions can get complicated, but there are clear steps that can help simplify and calm the process.
In this guide, we’ll walk through the key steps for selling an inherited property with multiple owners, with insights from a top real estate agent who specializes in these types of sales.
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Editor’s note: This post is for educational purposes. If you need assistance navigating the legalities or tax implications of selling an inherited property with multiple owners, HomeLight encourages you to consult a professional advisor.
First, agree on what to do with the property
When siblings or other heirs inherit a home, the first big decision is what to do with the property. Your primary options include:
- Sell the property
- Rent the property
- One heir buys out the property
- Arrange for shared use of the property
- Be prepared for a partition action, a civil lawsuit that forces the division or sale of a property that is jointly owned
For this post, we’ll assume all heirs agree that the property should be sold.
Steps for selling an inherited property with multiple owners
1. Establish clear, consistent communication
When selling inherited property with multiple owners, communication is critical. Misunderstandings or conflicts among heirs can delay the process. Early on, decide on how you’ll communicate — whether through emails, regular meetings, or group calls — and ensure that everyone is kept in the loop.
Consistent updates can help prevent confusion and maintain trust throughout the sale. This will be especially important if the legal process of probate is required.
“The role of probate is to make sure that the assets of the estate are protected from other possible adverse developments,” explains Jon Ahern, a top California real estate agent with more than 20 years of experience helping families with inherited homes. “That’s the number one purpose — to make sure the assets are protected and passed to the beneficiary in the most efficient manner.”
2. Consult a real estate attorney
A real estate attorney can provide essential legal guidance when multiple owners are involved. They’ll help you navigate the legalities of selling inherited property, including reviewing ownership documents, clarifying title issues, and making sure all heirs are in agreement. An attorney can also ensure that the sale complies with state and local inheritance laws.
“If you inherit a property and there was no will, and it wasn’t in a trust, and then it goes to probate, make sure you contact a good probate attorney to guide you through the process,” Ahern recommends. “Even if there is a trust, and you’re the trustee who makes all the decisions on selling the property, I would still be in communication with the attorney who wrote up that trust.”
Don’t wait too long to take this step. In most states, probate laws dictate that the deceased’s will must be filed with the probate court within one to four months of the date of death. If you don’t file within the required time in your state, you could be in violation of the law, and the court may refuse to appoint you as the estate executor.
3. Know where the mortgage stands
Before you proceed with selling, determine if there’s an existing mortgage on the property. If so, you’ll need to find out the balance and whether any payments are overdue.
If the mortgage isn’t paid off, it could impact the sale price or the distribution of proceeds. Knowing the financial situation upfront helps prevent surprises during the closing process.
4. Anticipate your timeline
When you have multiple owners, the process of selling can take longer than a typical real estate transaction. Anticipate delays as you work to get everyone on the same page and finalize decisions.
Ahern explains that the heirs can take ownership of the property faster if they’ve inherited it through a living trust or life estate deed because no court approval is required. This allows the new owners to sell the property immediately or at a time that fits their objectives.
“Make sure that you are correctly authorized to make the decision of the trust for yourself and any other beneficiaries,” Ahern says, adding that if an estate plan is in place, the next steps are easier, less expensive, and have a faster timeline.
Timeline tip: If you and the other owners find yourselves in probate, the wait time can be used to clean out the inherited house and make repairs to prepare the property for listing and selling.
5. Select an executor
If the property is still part of an estate, an executor or personal representative will be responsible for overseeing the sale. This person acts on behalf of the estate, ensuring that all heirs’ interests are represented fairly. Selecting someone everyone trusts is key to avoiding disputes, as the executor will play a central role in managing the sale and distributing the proceeds.
To learn more, see our post: 7 Tips for Executors Tasked With Selling the House.
6. Open an estate account
Opening an estate account is an important step when managing inherited property. This dedicated bank account will be used to handle all financial transactions related to the estate, including proceeds from the property sale.
An estate account helps ensure transparency and keeps personal finances separate from estate funds, which can make it easier to track expenses and distribute proceeds among heirs. With multiple owners involved, an estate account becomes an essential, verifiable record to help avoid conflicts.
7. Evaluate the home and market
Before listing the property, it’s important to assess its condition and current market value. One option to determine the home’s value is to contact an experienced real estate agent who can provide a comparative market analysis (CMA). This is a detailed report that uses data from nearby recently sold homes to give you an accurate selling price. You might also consider hiring a professional home appraiser.
A professional home inspection can reveal necessary repairs or upgrades that might increase the property’s selling price.
Additionally, understanding the local real estate market — such as whether it’s a buyer’s or seller’s market — can help you and the other owners make informed decisions about when to sell and how much to ask for the property.
Price planning tip: To get a preliminary estimate of what your inherited home might be worth, check out HomeLight’s Home Value Estimator.
8. Agree on a selling method
There are different ways to sell an inherited property, and it’s important for all owners to agree on a method. You might choose to sell the home through a traditional listing with a real estate agent, or you could opt for a quicker cash sale if the property needs extensive repairs. Discuss the pros and cons of each option with your co-owners to ensure everyone is aligned on the selling strategy.
HomeLight’s Simple Sale platform can provide a no-obligation, all-cash offer in 24 hours, allowing you to skip repairs and close the sale in as little as 10 days. Simply answer a few questions about the home and your selling timeline. You’ll receive your cash offer as well as estimates for how much you might get for the home if you sell it through a top-rated local real estate agent.
9. Consider a mediator
If communication among the owners breaks down or disagreements arise, it may be worth hiring a mediator. A neutral third party can help facilitate discussions and guide everyone toward a solution.
“Unfortunately, [disagreements] happen on inherited properties,” Ahern says. “Beneficiaries don’t always agree with each other. There could be litigation, which is going to take money from everyone’s inheritance.”
Mediation can save time and prevent the sale from stalling due to conflicts between heirs. It’s often a faster and less costly alternative to legal disputes.
10. Be prepared for a partition action
If the co-owners can’t agree on whether to sell the property or how to divide the proceeds, one party may file for a partition action in court. This legal process forces the sale of the property, with the court overseeing the division of the proceeds.
While it’s typically a last resort, being aware of this option is important in case negotiations reach an impasse. Clear, upfront communication and a mediator can often help avoid this action.
11. Get rid of unwanted items
Before selling the inherited property, you’ll need to clear out any personal belongings left in the home. This can be an emotional process, especially if the items belonged to a loved one.
To make things easier, consider donating or selling unwanted items. For any valuables, make sure all heirs are consulted about how they should be distributed. A clean, clutter-free home will also help attract potential buyers.
Tips to empty a house: See eight expert tips to help you clear out your inherited home in our post, “How to Sell a House Full of Stuff.”
12. Prepare the property
To get the best possible price for the home on the open market, you’ll need to make sure it’s in good condition before listing it. This might involve making minor repairs, freshening up paint, or improving curb appeal with landscaping.
If the home requires more substantial work, you and the other owners will need to agree on how to handle those repairs or negotiate with buyers who may want to purchase the home as-is.
Some real estate companies offer programs to assist heirs with the preparation and sale of an inherited home.
“If someone inherits a property and they want to do upgrades but they don’t have enough liquid cash in the trust, we have a program that can provide this money upfront for them,” Ahern says. “We have a whole team of vendors, and contractors [who] do the improvements, and make the seller more money.”
Preparation checklist: Our post, How to Prepare Your Home for Sale and Attract Buyers, includes a complete home-selling preparation checklist.
13. If listing, hire a top real estate agent
When selling an inherited property with multiple owners, having a top real estate agent on your side can make the process much smoother and more profitable. Look for an agent with experience in inherited properties or probate sales. They can help you navigate the complexities, market the home effectively, and negotiate offers.
Be sure to choose someone all the owners trust to represent your interests. Use HomeLight’s free Agent Match tool to find the highest-rated agents in your selling area. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.
14. Sell the property and divide the proceeds
Once the property sells, the final step is dividing the proceeds among the heirs. Your real estate attorney can help ensure that this process goes smoothly and that each heir receives their rightful share.
It’s important to keep all financial records and communication clear so that everyone is satisfied with how the funds are distributed. After the sale, any remaining tasks related to the estate can be wrapped up.
Consult With an Experienced Agent in Your Market
HomeLight’s free Agent Match tool can connect you with a top-performing agent to help you make the best decisions about selling a house you have inherited. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.
Common disputes when selling an inherited property
When selling an inherited property, multiple owners can lead to disagreements. Here are some of the most common disputes that arise so you can be better prepared to avoid or solve them:
Whether to sell or keep the property
It’s not uncommon for heirs to disagree on whether to sell or hold onto the property. One heir might want to sell for quick cash, while another may prefer to keep the home for sentimental reasons or as a rental investment. Resolving this requires open discussions or sometimes even legal intervention.
Disagreement over the property’s value and listing price
Setting the right listing price can be tricky, especially when owners have different perceptions of the property’s worth. Some may believe the home is worth more than the market suggests, leading to delays in listing it or disagreements on whether to accept offers. A top agent can help set a price everyone can agree on.
Conflicts driven by emotional attachments
Inherited homes often carry sentimental value, and emotional attachments can lead to conflicts about how the property is handled. This can influence decisions about selling or keeping the home, the level of care invested in preparing it for sale, and how heirlooms or personal items are managed.
Arguments over the distribution of costs
Selling a home involves expenses — repairs, maintenance, property taxes, and agent fees. Disputes can arise over how these should be handled, especially if one heir contributes more financially or if there’s a lack of agreement on how the proceeds will offset these costs.
Disputes over how proceeds are divided
Once the home sells, heirs may disagree on how the proceeds should be split. These conflicts can stem from differing interpretations of the will, unequal financial contributions to the sale process, or unresolved family dynamics. Legal consultation can help ensure that the division of funds is handled fairly and in accordance with the will or trust.
Proceeds preview: HomeLight’s Net Proceeds Calculator can give you an idea of how much money will be left over after the sale of your inherited property.
Ahern’s final piece of advice is to avoid litigation with the other owners of the inherited property. Legal disputes not only cost everyone money but can lead to heartaches and bad feelings that can sour family relationships for years or generations.
“Even though there’s only one decision-maker on paper, that still doesn’t mean that the other beneficiaries can’t take legal action,” he cautions. “If there are multiple beneficiaries and one person is making the decision, my advice is to just try your best to communicate with the other beneficiaries so that everyone is on the same page from the beginning.”
Inherited property FAQs
Probate can take anywhere from a few months to several years, but most estates settle within six months to two years. The length of probate depends on many factors, including the size of the estate, location of assets, contested issues, state laws, and tax implications.
Inheritance tax laws vary by state, but most heirs do not have to pay inheritance taxes. However, federal estate taxes may apply if the estate exceeds a certain value, and you should consult a tax advisor to understand your obligations.
Yes, if the co-owners can’t agree on whether to sell, one heir can file for a partition action in court. This legal process can force the sale of the property, with the proceeds divided among the heirs.
Yes, if one heir wants to keep the property, they can buy out the other heirs’ shares. This process should be handled with the assistance of a real estate attorney to ensure all parties are treated fairly.
If all heirs agree, renting out the inherited property is an option. However, this requires coordination to manage the rental, upkeep, and income distribution. If some heirs disagree, renting might not be feasible.
Common pitfalls include failing to consult a real estate attorney, underestimating repair costs, and not establishing clear communication with co-owners. Emotional disputes can also derail the sale, so it’s essential to stay organized and keep communication open.
Ready to sell your inherited property?
Selling inherited property with multiple owners can be a complex process, but with clear communication and the right professional help, it’s manageable. By following the steps outlined in this guide — establishing consistent communication, consulting legal experts, and hiring a top real estate agent — you can successfully navigate the sale and ensure all parties are satisfied with the outcome.
If you’re ready to sell, HomeLight can connect you with an experienced real estate agent who specializes in inherited property sales, making the process smoother from start to finish.
Header Image Source: (Roger Starnes Sr/ Unsplash)
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