Selling an Inherited House in Florida: A Step-by-Step Guide

Selling an Inherited House in Florida? Whether you’re dealing with probate, tax questions, or multiple heirs, this guide will walk you through everything you need to know.
In This Guide, You’ll Learn:
✔ How to navigate Florida probate laws
✔ How to avoid unnecessary taxes when selling
✔ The best ways to price and market your home
✔ How to sell your house quickly for cash
💡 Need a fast, hassle-free sale? Get a free cash offer now!
Table of Contents
- Understanding Your Options for Selling an Inherited House
- Do You Need to Go Through Probate?
- How to Value Your Inherited Property
- Tax Implications & How to Avoid Overpaying
- Handling Mortgages, Liens, and Debts
- The Best Ways to Sell an Inherited House (Fast or High-Value)
- Closing the Sale: Documents & Costs
- Avoiding Common Mistakes & Challenges
- Frequently Asked Questions

1. Understanding Your Options for Selling an Inherited House
When inheriting a property in Florida, you generally have three options:
Option 1: Keep the Property
- Use it as a rental for passive income.
- Move in and assume any remaining mortgage.
Option 2: Sell the Property
- Sell traditionally (via a real estate agent).
- Sell fast for cash to an investor.
Option 3: Transfer to Another Family Member
- Some heirs choose to transfer ownership to another relative.
Not sure which option is best? Talk to a real estate expert before deciding.
2. Do You Need to Go Through Probate?
What is Probate?
Probate is the court-supervised legal process for transferring ownership of a deceased person’s assets, including real estate. This process ensures that debts are paid and that property is distributed according to the will (or Florida law if there is no will).
When is Probate Required in Florida?
Probate is mandatory in Florida if:
✔ The property was solely in the deceased’s name (no co-owner).
✔ There was no living trust or legal method to transfer the home automatically.
✔ The property was not jointly owned with survivorship rights.
✔ The estate does not qualify for a Summary Administration (fast-track probate for estates under $75,000).
How Long Does Probate Take?
- Formal probate: 6-12 months (or longer if complications arise).
- Summary probate: 2-4 months (for small estates).
When Can You Avoid Probate?
Probate can be skipped or simplified in certain situations:
✔ The Home is Held in a Living Trust
- If the deceased placed the property in a living trust, it passes directly to beneficiaries without probate.
✔ The Property Was Jointly Owned
- If the deceased co-owned the property with “rights of survivorship”, ownership automatically transfers to the surviving owner.
- Common in married couples and joint tenancy agreements.
✔ A Lady Bird Deed or Transfer-on-Death (TOD) Deed Was Used
- A Lady Bird Deed allows the owner to retain control while alive but automatically transfers the property to heirs upon death without probate.
- A Transfer-on-Death Deed (TOD) works similarly, but Florida does not currently allow TOD Deeds—Lady Bird Deeds are the best alternative.
What If Multiple Heirs Inherit the Property?
If multiple heirs inherit the home, all must agree to sell it. If they disagree, they may need a partition lawsuit, which forces a sale and divides the proceeds.
Helpful Resource: Florida Probate Court Guide
3. How to Value Your Inherited Property
Get a Professional Appraisal
An appraiser determines the home’s fair market value based on:
- Recent local sales
- Market demand
- Condition of the property
Use a Comparative Market Analysis (CMA)
A real estate agent can run a CMA to estimate your home’s market value.
💡 Want a free valuation? Click here for a quick home valuation!
4. Tax Implications & How to Avoid Overpaying
Most heirs don’t owe federal estate tax unless the total estate value exceeds $13.61 million (as of 2024). This threshold, set by the IRS, applies to the entire estate, not just the inherited property.
Who Pays Federal Estate Tax?
If the deceased’s total assets (real estate, investments, bank accounts, etc.) exceed $13.61 million, the estate itself is responsible for paying the federal estate tax before distributing assets to heirs. However:
✔ The first $13.61 million is exempt (no tax owed).
✔ Amounts exceeding this are taxed on a progressive scale (18%–40%).
Does Florida Have an Inheritance or Estate Tax?
No. Florida does NOT impose an estate or inheritance tax. Even if the estate is taxable at the federal level, there are no additional Florida state taxes on inherited property.
Example Scenario (Do You Owe Estate Tax?)
Scenario 1: No Federal Estate Tax Owed
- Total estate value: $2 million
- Federal exemption limit: $13.61 million
- Result: No estate tax owed.
Scenario 2: Federal Estate Tax Applies
- Total estate value: $15 million
- Exempt amount: $13.61 million
- Taxable portion: $1.39 million
- Federal estate tax owed: Based on IRS tax brackets, up to 40% on the taxable amount.
How to Avoid Federal Estate Taxes?
✔ Use a Trust – Placing assets in a Living Trust may help reduce taxable estate value.
✔ Gifting Strategy – Giving assets to heirs before death can lower estate value.
✔ Charitable Donations – Leaving part of the estate to charity can reduce tax liability.
More Info: IRS Estate Tax Guide
Capital Gains Tax & Stepped-Up Basis
When selling an inherited house, the stepped-up basis rule helps reduce capital gains tax liability. Instead of paying taxes based on what the deceased originally paid for the home, you are only taxed on any value increase after inheritance.
How Does the Stepped-Up Basis Work?
✔ The home’s new cost basis is adjusted to its market value at the time of inheritance.
✔ If you sell immediately after inheriting, your capital gains tax is minimal or zero.
✔ If you hold onto the home for years, only the appreciation after inheritance is taxed.
Example Scenarios: Do You Owe Capital Gains Tax?
Scenario 1: Selling Immediately (Minimal Tax)
- The deceased originally bought the house for $100,000.
- At the time of inheritance, the home is worth $250,000 → This becomes the new cost basis.
- If you sell it for $250,000, there is no capital gains tax owed.
Scenario 2: Selling After Appreciation (Some Tax Owed)
- The inherited home is worth $250,000 when you receive it.
- You hold onto it for 5 years, and its value rises to $275,000.
- If you sell it for $275,000, you only owe tax on the $25,000 profit ($275,000 – $250,000).
Long-Term vs. Short-Term Capital Gains Tax Rates
✔ If you sell within 1 year → Short-term capital gains tax (higher rates, 10%-37%) applies.
✔ If you sell after 1 year → Long-term capital gains tax (lower rates, 0%-20%) applies.
Most heirs qualify for long-term rates, which are lower than ordinary income tax rates.
How to Reduce or Avoid Capital Gains Tax?
✔ Sell the home quickly (before major appreciation).
✔ Convert the home into your primary residence (tax exclusions may apply).
✔ Use a 1031 Exchange (if reinvesting in another property).
✔ Make strategic home improvements (to increase cost basis).
More Info: Learn More About Capital Gains Tax
Need to Sell Fast & Avoid Taxes?
Get a no-obligation cash offer from Frank Jr. Buys Houses!
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5. Handling Mortgages, Liens, and Debts
When inheriting a home, existing financial obligations don’t disappear—you may need to deal with mortgages, property liens, and unpaid debts before selling.
What Happens If the Inherited Home Has a Mortgage?
If the inherited home still has a mortgage, you have three main options:
✔ Continue Making Payments
- If you want to keep the home, you’ll need to continue paying the mortgage.
- Some lenders allow you to assume the mortgage without refinancing.
✔ Sell the Home & Pay Off the Loan
- If you plan to sell, the mortgage will be paid off at closing.
- If the sale price is higher than the mortgage balance, you keep the profits.
- If the sale price is lower than the mortgage balance, you may need a short sale (lender approval required).
✔ Assume the Mortgage (If Allowed)
- Some mortgages include an assumption clause, allowing an heir to take over payments.
- Contact the lender to check eligibility for mortgage assumption.
Pro Tip: Call the mortgage company immediately after inheriting the home to discuss your options.
What If the Home Has Liens?
A lien is a legal claim placed on a property due to unpaid debts. Before selling, you must clear any liens attached to the house.
✔ Common Types of Property Liens:
- Mortgage Liens – Unpaid home loans.
- Tax Liens – Unpaid property taxes (federal or state).
- Mechanic’s Liens – Unpaid contractor bills.
- Judgment Liens – Court-ordered debts (e.g., lawsuits, child support).
How to Check for Liens on an Inherited Property
To see if the home has any outstanding liens, perform a title search or check public records:
Florida Property Records Search (Miami-Dade)
Florida Lien Search
✔ If no liens exist, you can proceed with selling.
✔ If liens are found, you’ll need to:
- Pay them off before closing OR
- Negotiate a settlement with creditors
Pro Tip: If a tax lien exists, Florida law allows tax deed sales, meaning the property could be auctioned off if debts remain unpaid. Act quickly!
Need Help Clearing a Mortgage or Lien Before Selling?
Call Frank Jr. Buys Houses for a fast, hassle-free cash sale!
Would you like me to add real-world examples of mortgage or lien issues? 😊
6. The Best Ways to Sell an Inherited House (Fast or High-Value)
When selling an inherited house in Florida, you typically have two main options:
- A Traditional Market Sale (Maximize Profit but Takes Time)
- A Fast Cash Sale (Quick, Hassle-Free, No Repairs Needed)
The right choice depends on your timeline, financial situation, and willingness to make repairs.
Option 1: Traditional Sale – Get the Highest Price
✔ Best For:
- Homeowners willing to wait 3-6 months for a sale.
- Those who can afford repairs, inspections, and closing costs.
- Sellers looking to maximize profit.
✔ Steps in a Traditional Sale:
- Hire a real estate agent to list the property.
- Make necessary repairs & upgrades to increase value.
- Stage the home for better buyer appeal.
- List on MLS, Zillow, and Realtor.com for exposure.
- Negotiate offers and go through the buyer’s mortgage approval process.
- Close the sale after inspections, appraisals, and escrow (typically 30-60 days).
Estimated Costs & Time:
- Time to Sell: 3-6 months
- Realtor Fees: 5-6% commission
- Repairs & Staging Costs: $5,000 – $15,000 (varies)
- Closing Costs: 1-3% of sale price
Pro Tip: If the home is in excellent condition, a traditional sale is the best way to maximize profit.
Option 2: Fast Cash Sale – Sell Quickly & Avoid Hassles
✔ Best For:
- Heirs needing fast cash without waiting months.
- Homes that need major repairs or renovations.
- Sellers looking to avoid probate delays.
- People living out of state who don’t want the hassle of managing a property.
✔ How It Works:
- Request a cash offer from a real estate investor.
- Skip repairs – Sell as-is, no cleaning or staging needed.
- No realtor commissions or hidden fees.
- Close in as little as 7-14 days (compared to months with a traditional sale).
Estimated Costs & Time:
- Time to Sell: 7-14 days
- Repairs Needed: $0 (sell as-is)
- Commissions & Fees: $0 (no realtor commissions)
- Closing Costs: Often covered by the cash buyer
Pro Tip: If speed and convenience matter more than getting top dollar, a cash sale is the best option.
Traditional Sale vs. Cash Sale – Which One is Right for You?
Feature | Traditional Sale | Cash Sale |
---|---|---|
Time to Sell | 3-6 months | 7-14 days |
Repairs Needed? | Yes | No |
Closing Costs? | 1-3% | Often covered by buyer |
Realtor Commission? | 5-6% | $0 |
Best For | Maximizing sale price | Quick, hassle-free sale |
Not Sure Which Option is Best? Talk to a real estate professional to weigh your choices.
7. Closing the Sale: Documents & Costs
Required Documents
✔ Probate approval (if applicable)
✔ Property deed
✔ Disclosure statements
Closing Costs (Seller Fees)
✔ Title insurance
✔ Realtor fees (if using an agent)
✔ Transfer taxes
8. Avoiding Common Mistakes & Challenges
Selling an inherited house in Florida comes with unique challenges. Avoid these common mistakes to ensure a smooth and profitable sale.
Common Mistakes When Selling an Inherited Home
Overpricing the Home
- Many heirs set an unrealistic price, leading to longer time on the market.
- Buyers compare inherited homes to move-in-ready properties, so pricing too high may scare them away.
Solution: Get a professional appraisal or Comparative Market Analysis (CMA) to price the home competitively.
Try This: Zillow Home Value Estimator
Waiting Too Long to Sell
- Holding onto the home for too long means paying ongoing costs like property taxes, insurance, utilities, and maintenance.
- If the home is vacant, it could attract vandalism or squatters.
Solution: If you don’t plan to keep the property, sell sooner rather than later to avoid financial burdens.
Not Checking for Title Issues
Title problems can delay or block the sale.
Common issues include:
✔ Liens or unpaid debts attached to the property
✔ Multiple heirs with ownership disputes
✔ Unresolved probate cases
Solution:
✔ Get a title search done early to identify potential problems.
✔ If needed, work with a title company or probate attorney.
Check for Title Issues: Florida Property Records Search
Other Common Challenges (and How to Solve Them)
Family Disputes Over Selling
- If multiple heirs can’t agree, it can stall the sale for months or years.
- Some heirs may want to sell, while others want to keep the home.
Solution:
✔ Consider a mediator to negotiate a fair decision.
✔ If no agreement is reached, a partition lawsuit may be necessary to force a sale.
Major Repairs Needed Before Selling
- Many inherited homes need costly repairs, making it harder to sell through a traditional listing.
- Buyers may demand price reductions or ask for repairs before closing.
Solution:
✔ Sell as-is to a cash buyer to skip repairs.
✔ If listing traditionally, make small upgrades (paint, landscaping) to improve appeal.
9. Frequently Asked Questions (FAQs)
1. Can I sell an inherited home before probate is completed?
✔ Only if it’s in a trust or jointly owned.
2. How long does probate take in Florida?
✔ 6-12 months, depending on complexity.
3. Do I need a real estate agent to sell?
✔ No, but it helps for maximizing value.
4. What if multiple heirs can’t agree?
✔ You may need court intervention (partition lawsuit).
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