Selling an inherited Florida home

Selling an inherited Florida home is procedurally similar to selling any other home — with three Florida-specific complications that families miss. Probate authority to sell, stepped-up basis for tax purposes, and the title company's documentation requirements are the three things to get right before listing.

The good news: Florida real estate sales after probate are routine. Most close in 60–90 days from listing once probate gives the seller authority. The mistakes are also routine — and avoidable.

Step 1 — Can you actually sell yet?

The first question is whether you have legal authority to sell. The answer depends on how the property is currently titled.

• Title was held jointly with right of survivorship: surviving owner has full authority. No probate needed for the sale itself.
• Title was held in a revocable living trust: the successor trustee has authority to sell. No probate for the home.
• Lady Bird deed in place: remainder beneficiary takes title automatically; can sell without probate.
• Title was in the decedent's name alone, with a will: probate is required. PR gets authority to sell after Letters of Administration are issued.
• Title was in the decedent's name alone, no will: probate is required. PR (appointed via intestacy rules) gets authority after Letters.

Step 2 — Understand the stepped-up basis

This is the single most valuable rule in inherited real estate: when you inherit property, your tax basis is its fair market value on the date of death, not what the decedent originally paid. This typically erases decades of unrealized capital gain.

Worked example: Mom bought the Sarasota house in 1985 for $80,000. At her death in 2026, it's worth $650,000. If she had sold it the day before death, she'd owe capital gains tax on $570,000 of appreciation. When you inherit it, your basis steps up to $650,000. Sell it for $660,000 a year later? You pay capital gains tax on $10,000, not $580,000.

Step 3 — The title company's checklist

Florida title companies require specific documentation when selling probate property. Here's what they'll demand at closing:

• Original Letters of Administration (not a copy). The court issues certified copies; we order extras at petition stage.
• Order Determining Homestead (if applicable). If the property was the decedent's homestead, this clears constitutional homestead protection from title.
• Death certificate (certified). Often required as a record-of-title document.
• Proof of payment of any liens or encumbrances — recorded mortgages, judgments, or liens.
• PR's deed — typically a Personal Representative's Deed conveying the property to the buyer.
• Order Approving Sale (sometimes). For some sales — particularly where the will doesn't grant explicit sale authority or there's family disagreement — court approval is required before closing.
• Affidavit of heirship or similar — required when there's no will and the title company needs to confirm who the rightful heirs are.

Step 4 — Multiple heirs, one house

When multiple beneficiaries inherit a single property, the legal mechanic is straightforward (the PR can sell and distribute proceeds), but the family dynamic is often complicated.

• Get unanimous agreement on the sale, in writing. A signed family settlement agreement — even a simple one — prevents fights later.
• Agree on the listing price strategy before listing. Aspirational pricing followed by reductions creates conflict; setting a realistic price up front does not.
• Decide who handles the sale logistics (one heir, the PR, a sibling who lives nearby). One person at the wheel.
• Document any pre-sale advances (one heir's been paying utilities; one wants to take a piece of furniture before sale). Reconcile at distribution.
• Understand the buyout option: any heir can offer to buy out the others' shares. Common when one heir lived in the home or has emotional ties.

Step 5 — Capital gains at sale

Once you have stepped-up basis, capital gains is calculated against the sale price minus basis minus selling costs.

Florida has no state income tax — so capital gains are only federal. Federal long-term capital gains rates (assuming you hold more than 1 year, which inheritances are deemed long-term automatically) are 0% / 15% / 20% depending on income.

Selling promptly often produces near-zero gain because the sale price equals the date-of-death value. Selling years later means the home has further appreciated above the stepped-up basis — that's where federal capital gains shows up.

• Sell within 1–2 years: typically minimal gain.
• Hold for 5+ years: substantial appreciation likely; federal capital gains tax on the post-death appreciation.
• Heir lived in the home as primary residence for 2+ of past 5 years: may qualify for the §121 primary-residence exclusion ($250k single / $500k joint).
• Sold at a loss: deductible against capital gains and (limited) ordinary income on your federal return.

Step 6 — Listing strategy

Two basic approaches:

• Traditional MLS listing with a real estate agent: maximum exposure, typical 5–6% commission, 30–60 days on market for well-priced homes. Best for ordinary single-family homes in good condition.
• As-is sale to investor or cash buyer: faster (15–30 days), no repairs needed, lower price (typically 70–85% of market value). Best for distressed properties, hoarder houses, hurricane-damaged homes, or families who prioritize speed.

We coordinate with brokers and as-is buyers regularly. Either path is fine; the right one depends on the property condition and family priorities.

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