Complete Guide to Selling Inherited Property In Colorado

Sell Your Inherited House: A Guide To Selling Inherited Property [2024]

If you are the sole heir to an inheritance or inherited a house with other family members and are thinking of selling it, this guide has been created for you.

Topics covered in this article include how to sell your inherited property, income from the sale, inheritance taxes, selling your share, and more.

KEY TAKEAWAYS:

The sale of inherited property does count as income, HOWEVER…
As an heir, when you sell your inheritance you can avoid paying capital gains tax (I’ll tell you how this works)
You can sell your share of your inheritance.
Alternatively you can buy your siblings share of the inheritance.
You can sell your inherited house without having to fix anything or make repairs.

An Introduction To Sell Your Inherited House

WHO AM I?

My name is Shaun Martin. I am a professional home buyer and my niche is buying inherited houses. Over the past 20 years, I have worked with many beneficiaries, probate officers, and real estate attorneys.

I have been involved in many transactions involving inherited houses and because of this I sincerely believe my advice can help you sell your inherited house fast, for a fair price, and hassle-free.

BUT FIRST…

How much is your inherited house worth right now?
How much would you get if you sold your inheritance to a cash buyer?
Would you consider a NO-OBLIGATION cash offer to sell your inherited house as-is?

If you like the sound of getting a NO-OBLIGATION CASH OFFER on your inherited property click here to sell without having to:

Make repairs
List it on the MLS
Or deal with Realtors.

Can I sell inherited property without probate?

Sell Your Inherited House Colorado – NO STRESS

CAPITAL GAINS TAX: How much will I have to pay?

Your Guide to Selling Inherited Property in CO

How to sell an inherited property in Denver, CO. This is a huge topic. But I will break it down into easy-to-understand topics.

Plus I will give you a checklist for selling an inherited property. The checklist will make sure you don’t miss anything.

Let’s begin with a few high level frequently asked questions about selling inherited houses.

Can I avoid taxes when selling my inherited house?

If you inherited a house recently and want to avoid paying taxes this is what you need to do.

Sell your inherited house as-is. The easiest way to do this is find a company that specializes in buying inherited houses.

If you inherited a house in Colorado we are your solution. We buy inherited property fast and we pay cash.

THE BENEFITS FOR YOU ARE:

No repairs.
No hassles.
AND NO INHERITANCE TAX.

These are real benefits because we can buy your house and ensure you do not pay taxes. Our experts understand stepped up cost basis. Stepped up cost basis is part of the tax code that, working together, will mean you don’t pay taxes when you sell your inherited house to us.

Follow this link for more information on Colorado Estate Tax and Selling Inherited Property.

How To Sell My Inherited House Fast in Colorado?

You can sell your inherited house fast by selling to a reputable home buyer like We Buy Houses In Denver.

WeBuyHousesInDenver.org specializes in buying inherited property fast. We can close in less than a week! Is that fast enough?

Selling your inherited house fast in Colorado starts with a cash offer. Follow this link to get a no obligation cash offer to sell your inherited house today.

Selling your inherited house to a cash home buyer is not for everyone. Maybe you would like to fix it up and sell for top dollar.

Either way, selling as-is for cash, or fixing it up, give us a call. Our friendly team would love to discuss all your options.

With over 20 years in the Denver housing market we have some great knowledge we would love to share.

NO LETS GEET THAT INHERITED HOUSE SOLD!

Can I sell my inherited property without going through probate?

No. When you inherit a house the first thing that has to happen is it goes into probate in Colorado.

Probate is a process to make sure the correct person inherits the property.

Now, once probate has begun the inherited property can be sold. The cash from the sale will be put into the estate account. At this point the cash can be used to pay for bills and other expences.

The cash can even be paid out to beneficiaries to spend however they want. For this to happen all parties involved have to agree.

Follow this link for more information on selling a house in probate.

Here are simple steps to sell your house while in Colorado probate.

Topics I Cover About Inherited Houses

Some topics about selling inherited property are more pressing than others. They are more pressing because more benefactors ** ask me about them (** a benefactor is someone who got inherited property) I’m more regularly asked about:

Inherited property with family and multiple owners
Capital gains on an inherited property
How to sell an inherited property.
Can I sell my house while in probate?

Because of this, I will dive more into all these areas. However, before we talk about how to sell, let’s make sure you are ok.

Selling Your Loved Ones House

Selling any house can be tough let alone that of a loved one. hOver the years, many people have called me saying “I want to sell my inherited house.” This is a simple statement, but it is filled with highly charged emotions and may cause significant stress.

SELLING INHERITED PROPERTY IS A FABULOUS OPPORTUNITY TOO

On the other hand selling, an inherited property is a FABULOUS opportunity. You can make selling your inherited house an exciting memorable process. PLUS you can use the money to make new memories, right?

While it is 100% ok to be upset, try to also realize the moment that your loved one has bestowed on you.

Inherited property is life changing: You need the facts from legit experts.

Inheriting property from someone who passed away is a life-changing event. Without little warning you are charged with selling inherited property. It is a process that may seem overwhelming.

Because of this, I have gathered ONLY THE FACTS on selling an inherited property. To make sure you get high-quality and up-to-date information I have personally:

Researched 132 hours online.
Talked to and interviewed many real estate experts and attorneys.
PLUS I have had many homeowners sell inherited property to me (I have been doing this a long time).

These experiences and research are all presented here today. They are for you to learn, understand, and be comfortable selling property you inherited.

Sound good?

Guide to Sell Inherited Property

This guide on selling inherited property is a MONSTER RESOURCE. Therefore take your time to find what you need.

From all of this I found the 3 most common topics people have about inherited property. The topics include:

Inherited Property Multiple Owners
- Can the majority rule in selling an inherited property?
- Selling share of inherited property
- Selling share of inherited property to siblings
Capital Gains Tax On Inherited Property
- Selling inherited property taxes
- Rates of taxes on selling inherited property
- Can I avoid capital gains tax selling inherited property
Selling Inherited Property
- How to sell inherited house?
- When can I sell inherited property?
- Easiest way to sell inherited property
- Who can I sell inherited property too?

Sell Inherited Property: Guide to emotions and feeling overwhelmed

It is normal to feel emotional or overwhelmed when selling inherited property. IT’S OK!

I’m not going to lie to you though. To sell inherited property is a monumental task. You will be hit with a wall of things to do. BUT you’ve got this!

Selling inherited property is a fabulous opportunity

I implore you to focus on your inheritance as a gift and fabulous opportunity. Try not to get bogged down. Take it one step at a time. I know you can sell your inherited house successfully.

Case Study: Inherited Mom's House and How I Sold It

Don’t you think it might be nice to hear how others can be overwhelmed and emotional too? Let’s take a moment to hear how others sell inherited property.

Lisa’s mom passed away leaving her the family home. After initially being swamped she was able to sell the inherited property easily and for a great price!

“I would highly recommend the team at WeBuyHousesInDenver.org.” Lisa K, Denver, CO

“Inherited my mom’s house in Denver, CO. I could sell as-is, selling was fast and very easy in the end.”

It’s not uncommon for more than one person to inherit a house. Sometimes a parent will leave it to all their children.

There are pros and cons to having multiple owners to an inheritance as seen in the infographic below.

Selling Inherited Property with Multiple Owners in Denver, CO

Anytime there is more than one person involved decisions become more difficult. In-fact in my experience the more people involved the harder it gets. Selling inherited property with multiple owners is no exception.

Inheriting a house is a wonderful opportunity. But it isn’t always smooth sailing. Multiple owners can be a blessing and a curse.

Multiple owners can be a blessing because:

They can share paying the bills.
Share fixing the house up.
Combine knowledge and better ideas to come up with sound decisions.

Multiple Owners Can Make Selling Inheritance Difficult

Multiple owners can be a curse when it comes to an inheritance because:

People can argue about who should pay for what.
Someone may want to live it.
Some beneficiaries may want to sell and cash out.

WHAT TO DO WITH INHERITED PROPERTY

That’s the beauty of inherited property. There are so many things to do with inherited houses. Options can include:

Renovate it and sell it on the MLS.
Make it a family vacation spot.
Transform it into a rental house and investment.

However, for today let’s stick with selling an inherited property. AND right now selling an inherited house with multiple owners.

How to sell inherited house with multiple owners

This can be very simple or it can become a nightmare.

The easy way to sell with multiple owners.

If you want to sell inherited property with multiple owners, the easy way to get it sold is to get everyone to agree to sell it.

If you all agree to sell it then there is no problem, right? Once everyone agrees you can sell the house just like any other house.

Find a buyer, negotiate a price then close. At the closing, all of the heirs and beneficiaries will be required to sign.

It can be that easy.

But what happens if all the heirs don’t want to sell?

If you don’t all agree, this is when selling with multiple owners becomes a nightmare!

If you want to sell but the other owners don’t then you have a problem. Common sense would dictate that there would be a majority rule when selling an inherited property. But this is just not the case!

Can majority rule in selling an inherited property in Denver Colorado?

The majority doesn’t rule when selling and inheriting property. Unless of course, there was a contract that stated that. But as you and your family just inherited the house this is highly unlikely.

Therefore if 2 out of 3 siblings want to sell you think it would be a no brainer, right?

But like I said, legally there is no “majority rules” when selling inherited houses. Instead, the decision will be made by the courts.

The court will look at the circumstances and then decide if one person can legally force the sale of the inherited property. Because of this, if you find yourself in a conflict with your family about selling a home you inherited, I highly recommend you talk to an attorney.

Like I said, selling inherited property with multiple owners can be a nightmare.

Of course, you could try and sell your share to the family member who didn’t want to sell.

Capital Gains Tax on Inherited Property

If you inherited a house you can sell it and end up with a bunch of cash which the IRS will consider as income. This of course leads to the question:

Do I have to pay taxes on it?

Like many questions around the tax code, the answer is often IT DEPENDS.

Quite simply there is a way you can sell the inherited real estate and not pay taxes. It involves a step up in basis that resets the value of the property to the day the person who left you the property passed away.

I’m going to tell you how that works right now.

If I sell inherited property is it taxable?

Yes, if you sell inherited property it is taxable income. However just because you sell your inherited property doesn’t mean you will pay taxes and here is why.

The Inheritance Is “Stepped-Up In Basis”

The day the person passes away the IRS makes an adjustment to the value of the house you inherited for tax purposes. The adjustment made affects how much capital gains tax you will pay when you sell the house. The IRS calls this a step-up in basis.

A step-up in basis is when the IRS changes the value of the house they use to calculate any future capital gains made. When the house is sold, instead of using the price the deceased person paid for it, way back when, they will use the current market value of the house.

This has huge implications for you when you sell your inheritance.

So how can you avoid paying capital gains tax on inherited property?

This is how…

How to avoid paying capital gains tax on inherited property?

The way to avoid paying capital gains tax on inherited property is to sell it when you inherit it. If you sell your house as soon as you inheirt it there will be no capital gains, and therefore no capital gains tax to pay because the IRS adjusted the value of the house they use to calculate the capital gains tax pretty much to the day you inherit it.

That is of course if you don’t want the house as a rental or to live in.

Remember capital gains are made as the house increases in value. If you sell it before it increases in value then you have no taxes to pay.

If you do keep the property for some time and then sell it in the future for an amount over what it was worth when the benefactor passed away you will pay capital gains tax on that part of the inheritance.

Final word on inheritance tax AKA capital gains tax and selling a inherited house

Of course, as we all know, the tax code is a complicated beast. Couple regular taxes with Capital gains tax on inherited property and your head can spin.

However to summarize here are some key points.

KEY POINTS:

The sale of an inheritance is considered income by the IRS
If you inherit a house and sell it for the same as the property was worth the day the benefactor died you will not have to pay any capital gains tax, also known as inheritance tax.
Inherited real estate is “stepped-up in basis” and is calculated on the day the owner dies.

How to Sell Your Inheritance: Making the Sale

Selling inherited property, when you break it down to the nuts and bolts, is no different than selling any other house.

“Now wait a minute!” you might say. We were just talking about all sorts of nightmare situations that can occur. I agree that there can be some trickiness to navigate but once everyone is on the same page the process is the same.

Process of selling your inherited house

The process will vary depending on the method you choose when of selling inherited property. Typically people will either:

Fix it up then sell.
Sell inherited house as-is.

The main benefit of fixing it up and then selling it is you will get top dollar. When you renovate any house and then list it on the MLS it will sell for more. But does that mean you make the most profit? Would you recoup your costs from the renovation?

Speaking from experience many things don’t add value and there are lots of things not to fix when selling a house – inherited or not! Are there benefits of selling as-is?

Sell Inherited House Without Fixing Anything

There are many benefits to sell inherited property without making repairs. The main benefits are:

You save a ton of cash.
You don’t have to deal with contractors.
There are no delays because of the supply chain either.
Sell your inherited property faster.

PLUS many people have found that selling as-is actually means they walk away with more cash in their pockets because of the price of lumbar, building materials and contractors!

For in-depth information and expert advice check out our complete guide on how to sell a house as-is.

Who buys inherited houses as-is?

The most common person to buy your inherited house as-is is a real estate investor. A real estate investor can also be known as a:

Fix and flipper.
Cash home buyer.
We buy houses person.

WeBuyHousesInDenver.org AKA We Buy Houses in Denver is a company that specializes in buying inherited properties for cash. Not only do we pay cash but we can close fast.

Sell My Inherited House Fast

The fastest way to sell your inherited house in Denver is to contact us. We Buy Houses in Denver specializes in buying inherited properties fast. We buy inherited homes faster because:

We pay cash for houses.
You don’t have to fix anything.
We eliminate all middle people.
You choose the closing date.

Because of these reasons you can sell your inherited house fast in Denver, CO!

Documents Required for Selling Inherited Property

The documents required for selling inherited property are:

Executors deed (if the house was left to you in a will).
Administrators deed (of the probate court grants you the house).

In either case, the deed must include you as the new owner of the house, the legal description, and anything else that is required on a deed.

Can I sell my inherited house during probate?

The short answer is yes you can sell your inherited house during probate.

For greater detail and more practical information on the probate process in Colorado and how to sell a house that is still in probate, I invite you to check out:

Can you sell a house in probate?

AND

Colorado Probate: 6 Simple Steps to Sell House Successfully!

Checklist for Selling an Inherited House

As I have pointed out there are many steps to selling inherited property. Because of this I have created a checklist for selling inherited property.

Do not be overwhelmed. You can do this! Just take each step as it comes. You can download the checklist here. The checklist for selling a inherited includes:

Locate the deceased persons last will and testament
Determine who is the executor.
Determine who is a beneficiary.
Communicate with family that are not legally entitled to the estate.
Come up with a plan for the inheritance:
1. Sell as-is.
2. Fix it up then sell it.
3. Renovate and then rent it out.
When selling decide how to sell:
1. Sell with an agent
2. Sell your house by yourself
3. Sell house for cash
Determine how quickly you want to sell.
Probate: Process yourself or pay an attorney.
Does the inheritance have outstanding liens or owed debts?
1. Mortgage balance
2. Property Taxes
3. City Fines or any other liens
Capital Gains Tax: Will you have to pay and how much?
Find a home buyer that specializes buying inherited houses and can do all this for you (Guess what… we buy inherited houses and would ABSOLUTELY love the opportunity to give you a fast cash offer – just let me know…)

We Buy Inherited Property In Colorado For Cash!

SELL MY INHERITED HOUSE COLORADO: Sell your inherited house fast, hassle free, and for cash to Denver’s specialist INHERITED HOUSE BUYER.

I can work out the cash value of your inheritance because I specialize in buying inherited houses in Colorado. I can do this today – FOR FREE