How to Sell Your Parents’ House After Death

You can sell your parents’ house after they die, but who is allowed to sign the deed depends on how the home was owned and whether a will, trust or probate case is in place. In most cases, the person with legal authority (an executor or personal representative, or a successor trustee) makes the sale, and heirs share the proceeds. This guide walks through the order of events, the timing, the taxes and the choices for a house that needs work, with Michigan details where they matter.

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TL;DR

Before anyone lists the house, find out who has legal authority: a named executor, a court-appointed personal representative, or a trustee if the home sits in a living trust.
Probate is often required when the house was in your parent’s name alone. Homes held in a trust or passed by a transfer-on-death deed may skip it.
Heirs generally get a stepped-up tax basis, so a sale soon after death often creates little or no taxable gain.
A house that needs repairs, or one the family cannot maintain, can be sold as-is to a cash buyer, with no cleanout, showings or commissions.
If a reverse mortgage is involved, a short deadline applies after the lender’s notice, so act early.

Start by finding out who can legally sell
The steps from the funeral to the closing table
How long does it take?
Your three options compared
Dealing with the belongings and the repairs
If the heirs disagree
Taxes when you sell an inherited house
Our perspective: what we see in Metro Detroit
Selling an inherited house in Metro Detroit as-is
A short checklist before you accept any offer
FAQ
Sources

Start by finding out who can legally sell

Grief and paperwork arrive together, and the first mistake families make is calling an agent before they know who has the right to sell. Nobody can sign a deed until authority is clear.

The answer usually falls into one of four situations:

There is a will. The will names an executor, but a court generally has to confirm that person before they can act. The Consumer Financial Protection Bureau explains that a will may require probate, which recognizes the will and appoints an executor or personal representative.
There is no will. The probate court appoints someone, usually a close relative, under state inheritance law. Michigan treats this person, called a personal representative, as a fiduciary. The Michigan Court of Appeals has described the role as settling and distributing the estate efficiently and in the interest of those who benefit from it. That duty is to everyone with a stake, not just the one who is handling the sale.
The house is in a living trust. The successor trustee can usually sell without a probate case, following the trust’s terms.
The house passes by a deed. The same CFPB guide notes that a living trust can pass the home without probate, and transfer-on-death deeds can avoid probate where state law permits them.

If you are the only heir, you have the widest choice: sell, keep, live in or rent the home. AARP notes that when other heirs are involved and no specific instructions exist, the executor decides what happens to the property.

One more case: if your father or mother died first and the surviving spouse still owned the house, the deed may need to be sorted out in the survivor’s name before anything can be sold.

What happens if your parent owned the house alone

When the house was titled only in your parent’s name, the small estate shortcuts generally do not apply. A Michigan estate attorney’s overview says the small estate affidavit route is meant for estates where the deceased did not own real estate solely in their name. Minnesota’s courts describe the same idea: probate generally is not needed only when no real estate is held in the person’s name alone, and the dollar limits differ by state. In practice, a house owned alone in Michigan usually means opening an estate in the probate court of the county where your parent lived.

The steps from the funeral to the closing table

The order below keeps the process tidy. Your attorney will adjust it for your parent’s estate.

1. Secure the house and keep the insurance active

An empty house is a risk. Lock it, collect the mail, keep the utilities at a level that protects the pipes, and tell the insurance company the owner has died. Many standard policies limit coverage on vacant homes, so ask your agent in writing what applies. AARP’s guidance also lists maintaining the home and its insurance as part of the early work, along with clarifying who inherits and who can decide.

2. Gather the documents

You will need certified copies of the death certificate, the will or trust if one exists, the deed, recent mortgage and property tax statements, and a list of accounts and debts. If you do not know whether a will was filed, the probate court in your parent’s county can tell you.

3. Get legal authority in place

In Michigan, a personal representative receives letters of authority from the probate court. A title company will ask to see them before it insures a sale. Hire a probate attorney for this step, especially if there is no will or the family does not agree.

4. Find out what is owed on the house

AARP recommends obtaining a preliminary title report to identify mortgages, reverse mortgages, taxes and liens. Debts tied to the property are paid from the sale proceeds at closing. If the estate owes federal taxes, the IRS says the estate may need to resolve a federal tax lien before selling, and that is another reason to involve an attorney early.

5. Decide how to sell

You have three realistic routes: list with an agent, sell to a cash buyer as-is, or keep the property. The next sections compare them.

6. Close and distribute

At closing, the title company pays off liens and closing costs, and the net proceeds go to the estate account. The personal representative then distributes them according to the will or state law, after debts and expenses are handled.

How long does it take?

Probate sets the pace. One estate-planning resource estimates that a simple small-estate filing may take a few weeks, typical estates six to twelve months, and contested estates longer. Those are general ranges, not Michigan guarantees, so ask your attorney what the local court is running.

In Michigan, an appointed personal representative generally has broad power to sell estate real estate without a separate court order, unless the will or a court order limits it. That means the sale does not always have to wait for the whole estate to close. Once you have letters of authority, you can often move on the house while the rest of the estate continues. Ask your attorney to confirm this for your case.

Two timelines can shorten your window:

A reverse mortgage. The CFPB says a reverse mortgage becomes due after the borrower and any co-borrower or eligible spouse die, and heirs generally have 30 days after the lender’s notice to buy, sell or surrender the home, with a possible extension up to six months. Call the servicer quickly.
Ongoing carrying costs. Property taxes, insurance, utilities and upkeep continue every month the house sits. Those costs come out of the estate, which means they reduce what the heirs receive.

Your three options compared

	List with an agent	Sell to a cash buyer	Keep or rent
Repairs and cleanout	Usually expected before listing	None required, sold as-is	You pay for upkeep
Showings	Yes	No	Not applicable
Commissions	Paid from the proceeds	None	None
Speed	Depends on the market and the buyer’s financing	Can close in days once authority is in place	Not applicable
Best for	A house in good condition and a family with time	A house with problems, distant heirs, or a family that wants closure	One heir who wants the home

Listing can bring the highest price when the house is in good shape and the family can wait. Selling as-is trades some of that potential for speed, certainty and a much lighter workload. Probate homes are commonly sold as-is, without improvements or renovations, so it is not an unusual choice.

Dealing with the belongings and the repairs

A parent’s house holds decades of belongings, and sorting them is often the hardest part emotionally. Many families follow a simple system: set aside items for family, items to donate, items to sell and items to discard. Redfin’s guidance suggests sorting into give-away, discard and sell piles, and holding a yard or estate sale before listing.

Heir sorting belongings into separate household piles

Before you move anything of value, make sure the other heirs know. Photographing rooms before clearing them, and keeping a written list of what leaves the house, protects you from later disagreements.

Then comes the question of repairs. Older Detroit-area houses often have aging roofs, furnaces, plumbing or foundations. Fixing them before a traditional listing takes money and months, and the estate may not have either. That is the main reason heirs choose an as-is sale.

If the heirs disagree

Siblings often grieve differently, and the house can become the center of it. One wants to sell, another wants to keep it, a third lives out of state and cannot help. It is normal, and it does not mean your family is broken.

The practical steps are these:

Put the options and costs in writing so everyone sees the same numbers.
Ask the personal representative to share the estate’s accounting.
Consider a neutral mediator before spending money on court.
Remember that the court is the backstop. In Minnesota, for example, disagreement among heirs may lead to formal probate, where a judge can make decisions. Michigan’s probate court plays a similar role.

A written offer, a firm closing date and no repair project can sometimes settle an argument that a long listing would drag on.

Taxes when you sell an inherited house

This is the part most heirs worry about, and the news is often better than expected. Talk to a CPA or tax attorney about your own return.

Step-up in basis. The IRS states that the basis of inherited property is generally its fair market value on the date of death, or on an alternate valuation date if the executor files Form 706 and elects it. Basis is the starting number for measuring gain. Because it resets to the value at death, a house your parents bought decades ago is not taxed on all of that long-term growth.

What is taxable. Gain comes from selling for more than that adjusted basis. Selling expenses reduce it: the IRS teaching materials describe the amount realized as the selling price minus expenses such as commissions, advertising fees, legal fees and loan charges. A fast sale soon after death, close to the appraised value, usually leaves little gain.

Reporting. The IRS says that if a filing is required, the sale is reported on Schedule D (Form 1040) and/or Form 8949. Get a date-of-death appraisal, since it is the document that supports your basis.

Estate tax liens. If a federal estate tax return is required, a lien attaches to the estate, and a discharge may be needed to sell. Most family estates are not in that situation, but the title company will check.

For a worked walkthrough, see our guide to calculating capital gains on an inherited house. If a relative lives abroad, remember that other countries set their own rules; Portugal’s property capital gains tax is one example of how differently basis and exemptions can work.

Taxes when you sell an inherited house — overview diagram

Our perspective: what we see in Metro Detroit

We have bought homes in Southeast Michigan for more than 16 years, and many of the families we meet are in the middle of exactly this situation. They live in another city, or they work full time, and now they are managing a house in Detroit, Warren or Dearborn that they do not have the time, money or energy to repair.

Three things come up again and again:

Families wait too long. Taxes, insurance and utilities keep running while the house sits empty. Even a short delay costs real money.
The repairs look bigger than they are, or they are exactly as big as feared. Either way, the family should not have to settle that question while grieving.
People want a clear answer. Heirs rarely want to haggle. They want a written offer, a closing date they choose and someone who understands probate.

We buy directly and as-is, so there are no agent commissions, showings or cleanouts. We can usually close quickly once the personal representative has authority to sell, and we can also work around the court’s timeline. We will tell you honestly if listing is the better choice for your house. Our process for estates is laid out in how cash buyers handle probate homes.

— Real Estate Team

Selling an inherited house in Metro Detroit as-is

If the house needs work, or you simply want it off your plate, we can make a fair all-cash offer within 24 hours of hearing about the property, and close in as little as 7 days when the paperwork allows. There are no repairs, no cleaning, no showings and no agent commissions, and we cover standard closing costs.

Sell Dave Your House

You can request a cash offer with no obligation, and you choose the timing. If the house is in Detroit, you can also look at our page on selling an inherited house in Detroit, or see our main page on how we buy houses for cash in Michigan. Local pages are also available for Southfield, Roseville and Dearborn Heights.

A short checklist before you accept any offer

Confirm in writing who has legal authority to sell and have your attorney review the purchase agreement.
Ask for a date-of-death appraisal or broker opinion of value for your tax records.
Get a preliminary title report so you know what must be paid at closing.
Compare the net amount you would take home, not just the headline price. Net means after repairs, commissions, carrying costs and time.
Make sure every heir with a say has seen the offer.

FAQ

Can I sell my parents’ house right after they die?

Only if you have legal authority, which usually comes from a court appointment, a trust or a transfer-on-death deed. A house owned by your parent alone generally needs probate first. Once a personal representative is appointed in Michigan, the sale can often proceed before the whole estate closes.

Can I sell my parents’ house if there is no will?

Yes, but the probate court has to appoint a personal representative first, and state law decides who inherits. Expect more paperwork and a longer start. An attorney can tell you who has priority to serve in your county.

Do I owe taxes when I sell an inherited house?

Not necessarily. Inherited property generally gets a basis equal to its value at the date of death, so you are taxed only on gains above that figure, after selling expenses. Keep the appraisal and closing statement for your tax preparer.

What if the house has a reverse mortgage?

The loan generally becomes due after the borrowers die, and heirs typically have 30 days after the lender’s notice to buy, sell or surrender the home, with possible extensions. Contact the servicer right away and ask in writing what your deadline is.

Can we sell the house as-is?

Yes. Estates commonly sell homes as-is, and a cash buyer takes the house in its current condition, with the belongings and repairs left for them to handle. The price will reflect that condition, so compare the offer with what you would net after repairs and commissions.

How to Sell Your Parents' House After Death