Ready to sell your inherited California property? When you’re emotionally ready, this is the full process of what absentee sellers should expect.
Step 1: Obtain Legal Authority to Sell
Property in a Trust: If the deceased held the property in a living trust, the successor trustee has immediate authority to sell. You’ll need to provide the trust documents and successor trustee certification.
Property Going Through Probate: If the property must go through probate, the executor or administrator must petition the probate court for authority to sell. The court typically grants this authority, but the process can take time.
Multiple Heirs: If you inherited the property with siblings or other relatives, all heirs must agree to the sale and sign listing documents and sales contracts. Disputes among heirs can complicate or delay sales.
Step 2: Prepare the Property for Sale
Decide on Property Condition: You have three main options:
- Sell As-Is: List the property in its current condition. You don’t make any repairs or improvements. This will almost always result in a lower sale price. However, it can avoid the need for upfront investment. It will also speed up the sale process.
- Make Cosmetic Updates: Invest in paint, cleaning, minor repairs, and landscaping. The idea here is to improve the presentation without major renovation. This typically provides a good return on investment.
- Complete Major Renovations: Undertake significant updates. With this option, you’ll be trying to maximize sale price. This requires substantial upfront capital, time, and effort. However, it can yield higher proceeds.
For most absentee heirs, selling as-is or with minor cosmetic updates makes the most sense. It’s a real challenge to manage major renovations from a distance. Also, they may not provide a strong enough ROI to justify both the investment and delayed timeline.
Clean and Stage: Even if selling as-is, a clean, decluttered property shows better and sells faster. Consider hiring professionals to handle estate cleanout, deep cleaning, and possibly staging for photographs. If you’re working with an established real estate professional, then they should be able to handle this for you.
Step 3: Work with a Local Real Estate Professional
Selling inherited property from out of state is challenging. Working with an experienced California real estate agent familiar with inherited property sales is crucial.
What to Look for in an Agent:
- Experience with probate and trust sales
- Deep knowledge of the local Los Angeles market
- Willingness to coordinate with out-of-state sellers
- Network of contractors, cleanout services, and other professionals
- Strong marketing and negotiation skills
A knowledgeable agent guides you through required disclosures. They’ll not only help you price the property appropriately, but they’ll also handle showings for you. And, they can negotiate on your behalf.
Step 4: Price the Property Strategically
Are you trying to sell as fast as possible? Absentee sellers can be motivated to close quickly and avoid ongoing expenses. However, pricing too aggressively leaves money on the table. That’s why a lot of inherited properties end up selling below market value.
To avoid this, my team and I always do a comparative market analysis. We look at recent sales of similar properties in the neighborhood. Consider:
- Current market conditions in the specific Los Angeles neighborhood
- Property condition and needed repairs
- Your timeline and motivation to sell
- Competition from other listings
The right combination of pricing and marketing tactics typically generates multiple offers. It can result in a final sale price at or above asking, while also speeding up the sale process.
Step 5: Navigate Required Disclosures
California has extensive seller disclosure requirements. Even when selling as-is, you must disclose known material defects. For inherited property, you may have limited knowledge of the home’s condition and history.
The Transfer Disclosure Statement (TDS) allows you to indicate items where you have no knowledge. However, conduct a thorough inspection so you understand what you’re selling and can disclose appropriately. Failure to disclose known issues can result in legal liability after the sale closes.
Step 6: Accept an Offer and Navigate Inspections
Once you receive acceptable offers:
Review and Negotiate: Your agent presents all offers with recommendations. Consider not just the price but also contingencies, buyer financing, proposed closing timeline, and other terms.
Buyer Inspections: Buyers typically conduct home inspections, pest inspections, and possibly other specialized inspections. They’ll request repairs or price reductions based on findings.
As-Is Sales: If you’re selling as-is, you typically won’t make repairs but may need to negotiate on price if inspections reveal significant issues.
Appraisal: If the buyer is financing the purchase, their lender will require an appraisal. If it comes in low, you may need to reduce the price or the buyer may need to bring additional cash.
Step 7: Close the Sale
At closing, you’ll sign documents transferring ownership to the buyer. As an out-of-state seller, you can typically sign remotely via mobile notary or electronic signing.
Closing Costs: Sellers typically pay:
- Real estate commission (usually 5-6% of sale price split between both agents)
- Title insurance (in some counties)
- Transfer taxes
- Any negotiated repairs or credits
- Prorated property taxes
- Outstanding liens or judgments
Net Proceeds: After all costs and payoffs, you receive the remaining proceeds, usually via wire transfer within 1-3 days of closing.
Working with Martin Feinberg: Expertise in Inherited Property Sales
Selling an inherited house from out of state presents unique challenges. You need a real estate professional who understands not just the local Los Angeles market, but also the specific complexities of probate sales, trust properties, and working with absentee clients.
With almost 40 years of experience in Los Angeles real estate, Martin Feinberg has guided countless families through the inherited property sale process. We understand the emotional complexity of selling a family home. We also know the financial pressure of mounting carrying costs. We’ll help you with the practical challenges of managing a property sale from across the country.
Our comprehensive service includes:
- Accurate Property Valuations: Leveraging deep knowledge of Los Angeles neighborhoods. If you’re considering selling in Culver City, Santa Monica, or downtown LA
- Vendor Coordination: Managing cleanout services, repairs, inspections, and staging while you remain in your home state
- Estate Sale Expertise: Understanding probate court requirements and trust sale processes
- Tax-Smart Guidance: Working with your tax professionals to optimize timing and minimize capital gains exposure
- Clear Communication: Regular updates and prompt responses regardless of time zone differences
- Proven Marketing: Professional photography, strategic pricing, and targeted marketing that attracts qualified buyers quickly
If you’ve inherited property in Los Angeles and you’re wrestling with the decision of whether to keep or sell, or if you’re ready to move forward with a sale, we’re here to help.
Contact Martin Feinberg for a complimentary consultation and property evaluation. Let’s discuss your inherited property and develop a strategy that aligns with your goals.