Inherited Property: How Heirs Sell and How Buyers Can Help

Inherited property is real estate that passes to someone else when its owner dies. The heir might be a child, a sibling, a spouse, a niece who lives three states away, or five cousins who barely talk. How the house moves to them decides who can sign a contract, how long a sale takes and what you, as a buyer, need to see before you make an offer.

This guide covers both sides: the legal paths a house can take after a death, the tax questions heirs ask, what happens when several people inherit one house, and how investors and agents can find inherited homes and talk to heirs without being the fifth stranger who calls the week of the funeral.

Rules vary by state; confirm with a local real estate attorney.

The paths inherited property takes, with and without probate

A full probate case is only one way a house changes hands. Many inherited homes never touch the probate docket at all. They move through the county recorder instead.

Transfer on death deeds

A transfer on death (TOD) deed lets an owner name who gets the house at death. The Uniform Real Property Transfer on Death Act, approved by the Uniform Law Commission in 2009, is the model many states follow. Under it, the deed must be recorded before the owner dies, needs no notice to the beneficiary and no payment, and can be revoked. During the owner's life it changes nothing: the owner can still sell or borrow against the house. As of 2025, the ABA counted 32 U.S. jurisdictions that allow TOD deeds, some under the uniform act and some under their own versions.

Texas shows how the details work. Its statute requires the deed to be recorded in the county where the property sits before the owner's death, the beneficiary must survive the owner by 120 hours, and the beneficiary takes the house subject to every mortgage and lien on it (Tex. Est. Code §§114.103 and 114.104). That last point matters to you. A TOD beneficiary often inherits a mortgage along with the house.

Small estate procedures

Most states have a shortcut for estates under a set value, but many limit how far it reaches into real estate. Two examples:

• Texas. A small estate affidavit is available only when the owner died without a will, at least 30 days have passed, no personal representative has been requested, and the estate (excluding the homestead and exempt property) is worth $75,000 or less. Two disinterested witnesses and the heirs sign it (§§205.001 and 205.002). The only real estate it can transfer is the homestead, and the affidavit must be recorded in the county deed records (§205.006).
• California. For deaths on or after April 1, 2025, heirs can petition the court to transfer the owner's main home if it is worth $750,000 or less, and use an affidavit for other real property worth $69,625 or less. These limits reset every three years (California Courts self-help).

Affidavits of heirship

When an owner dies without a will and nobody opens probate, the family may record a sworn statement naming the heirs. In Texas, that affidavit is evidence, not a deed. A court must accept it as prima facie evidence of the family facts once it has been of record for five years (§203.001). Before that, whether a buyer can close depends on whether the title company will insure on it. Ask early.

Joint tenancy and survivorship

If the deceased owner held title as a joint tenant with right of survivorship, the surviving owner takes the house automatically and usually records a death certificate and an affidavit to show sole ownership. The survivor is the seller; nobody else in the family signs.

A house titled in the deceased owner's name alone, with no TOD deed, no trust and a value above the small estate limit, usually needs a full probate case before anyone can sell.

Taxes heirs ask about before selling

Heirs almost always ask whether selling will trigger a big tax bill. The federal answer is usually milder than they expect. This is general information; heirs should confirm with a CPA.

• Stepped-up basis. An heir's basis is generally the fair market value on the date of death, or on the alternate valuation date if the estate elects it (IRS Publication 551). If the parents paid $60,000 decades ago and the house is worth $300,000 at death, the heir's starting point is generally $300,000, not $60,000.
• Long-term treatment. Inherited property is treated as held longer than one year, no matter how quickly the heir sells (IRS Publication 544).
• Reporting. A sale of inherited property is generally reported on Schedule D and Form 8949, and an heir who received a Schedule A to Form 8971 may have to use the estate tax value as basis (IRS gifts and inheritances FAQ).
• The home sale exclusion. The $250,000 or $500,000 exclusion requires the seller to have owned and lived in the home for two of the last five years (IRS Topic 701). Heirs who sell soon after a death usually do not qualify, and with a stepped-up basis they often do not need it.
• Joint owners and community property. A surviving joint owner may get a step-up on only part of the house, depending on who paid for it and whether the owners were married. In community property states, both halves of community property can get the full step-up when one spouse dies (Publication 551).

State inheritance and estate taxes vary.

When several heirs inherit one house

Several heirs is the most common reason an inherited house sits. Under the uniform act and in Texas, two or more TOD beneficiaries take equal, undivided shares with no right of survivorship (Tex. Est. Code §114.103). Heirs under intestacy usually end up the same way: co-owners of the whole house.

That has practical consequences for a buyer:

1. Every owner signs. One sibling cannot sell the house alone. A contract signed by two of three heirs does not bind the third.
2. Someone has to be the contact. Ask the family who speaks for them. Get the other heirs' names early and confirm they agree to sell.
3. Distance slows signatures. Plan for mobile notaries and courier time when heirs live out of state.
4. Buyouts are common. Often one heir wants to keep the house and the others want cash. That heir may need financing, which can take longer than selling to you.
5. Holdouts can end in court. If one co-owner refuses to sell and refuses to buy, the others may file to partition. See our guide to partition actions.

How heirs usually sell an inherited house

Heirs usually list with an agent, sell as-is to an investor, let one heir buy out the others, or rent the house and decide later. A house in good shape near the heirs often belongs on the market. A house full of a lifetime of belongings, with a roof problem and heirs in three time zones, is where an as-is buyer earns their place.

How buyers find inherited property in public records

If you only watch the probate docket, you miss every house that passed by TOD deed, survivorship or a small estate affidavit. Those show up at the recorder instead. Places to look:

• Probate court filings. New estate cases, letters issued and small estate filings where the court handles them. Our guide to court records for investors covers how to search them.
• Recorder filings. Affidavits of heirship, affidavits of death of a joint tenant and recorded death certificates all show a change in ownership after a death. In TOD states, the deed was already recorded during the owner's life.
• Assessor changes. A tax bill mailing address that moves to another state, or a homestead exemption that drops off, often follows a death.
• Signs of strain. Unpaid taxes, a lapsed mortgage or code violations on an empty house suggest the heirs are struggling to carry it.

Approaching heirs with respect

Heirs are grieving, and many hear from several buyers at once. A few habits set you apart:

• Wait a reasonable time after the death before reaching out, and never mention the death in a cold opener as if it were a sales hook.
• Say who you are and why you are calling in one sentence. "I buy houses in this neighborhood, and I saw the property may be changing hands."
• Ask whether they have decided anything yet, then listen. Many have not.
• Offer something useful even if they never sell to you, such as a cleanout contact or a local probate attorney.
• Take "no" the first time. Note it and move on.

What to qualify before you make an offer

Before you write an offer, get clear answers on the following:

• Authority. Who can sign today: a personal representative with letters, a TOD beneficiary, a surviving joint owner, or a group of heirs? Ask for the document.
• Agreement. Do all owners or heirs agree to sell, and is one of them the contact?
• Debt and liens. Is there a mortgage, a reverse mortgage, unpaid taxes or other liens? A TOD beneficiary takes the house subject to all of them (Tex. Est. Code §114.104).
• Title. Will a title company insure the sale with what is on record now?
• Occupancy and contents. Is anyone living there, and who is clearing it out?
• Condition. Roof, systems, foundation and anything a vacant house picks up.
• Timeline. When do they want to close, and what is pushing them?
• Asking price. What number do they have in mind, and where did it come from?

Where Skipset fits

Skipset works from probate filings, along with other public records that point to distress such as pre-foreclosure, tax liens and code violations. It reaches the owner or heir by call, text and email, asks about asking price, condition, timeline and motivation, and books a call or appointment on your calendar. You negotiate and close. The seller is exclusive to your county, so another desk in that county does not get the same estate. See how it works, and check pricing for how wholesalers, funds, agents and brokers pay.