Selling an Inherited Property in the DMV: What You Need to Know

Inheriting a home is a unique experience. For some, it’s a sentimental gift—perhaps the home you grew up in or where cherished memories were made. For others, it’s an unexpected responsibility that comes with financial and legal decisions. No matter your situation, if you’ve inherited a property in the DMV area and are considering selling, there are several factors you need to keep in mind.

Understanding the Legal Process

Before jumping into the sales process, it’s crucial to understand the legalities surrounding inherited property. The first step is determining if the property needs to go through probate. Probate laws in Washington, D.C., Maryland, and Virginia differ slightly, but generally, you will need:

• A death certificate for the original owner

• A will or legal documentation proving your inheritance

• Clearance of any outstanding debts or liens on the home

If multiple heirs are involved, open communication is essential. Disagreements on what to do with the property can delay the selling process.

Tax Considerations

Many people worry about taxes when selling an inherited home. The good news is that the IRS provides a "step-up in basis," meaning you’ll only pay taxes on the difference between the market value at the time of inheritance and the sale price—not what the previous owner originally paid.

Maryland is one of the few states with an inheritance tax, so it’s wise to consult a financial expert before listing your property.

Sell, Rent, or Keep?

When deciding what to do with an inherited property, consider:

• Selling – If maintaining another home is financially or emotionally overwhelming, selling might be your best option.

• Renting – If the home is in good condition, renting could provide passive income, but you’ll need to factor in property management responsibilities.

• Keeping – If the home has sentimental value and is in good shape, you may choose to keep it as a family home or vacation property.

Preparing the Home for Sale

If you decide to sell, consider making small updates to boost value. Fresh paint, deep cleaning, and minor repairs can make a big difference. As a local REALTOR®, I can help you navigate this process, from pricing and staging to negotiating offers.

If you're considering selling an inherited home, let's chat about your options. You don’t have to go through this alone—I’m here to help!