START HERE: I Inherited a House. What Should I Do First?

The first decisions to consider when you inherit a home or become responsible for one as successor trustee.

“Where do I even begin?”

That may be the most common question I hear from people who have inherited a home or suddenly find themselves responsible for a family property.

There can be a surprising number of decisions.

Who has authority to act?

What should happen to everything inside the house?

Does the property need work?

What is it worth?

Should we keep it, rent it or sell it?

Are there tax questions we should address?

And what happens if family members don’t agree?

The good news is that you don’t need to answer all of those questions at once.

You don’t need to solve everything today.

The first step is simply putting the decisions in the right order.

1. First, Confirm Who Has Authority to Act

Before making major decisions about the property, it’s important to understand who actually has the legal authority to make them.

If the home is held in a trust, that may be the successor trustee.

If the property is going through probate, an executor or administrator may need to be appointed or confirmed.

There can also be questions about how title is currently held and what documentation will ultimately be needed to sell or transfer the property.

You don’t have to figure all of that out by yourself.

I suggest starting with the professionals you already have and working collaboratively with them as questions come up. I can also direct you to experienced professionals when needed.

I work well with the team you trust and help fill the gaps when needed.

The important thing is to identify questions early enough that they don’t become problems later.

2. Protect the House and Gather the Information You Already Have

If the property is vacant, some of the first priorities are simply practical ones.

Make sure the home is secure.

Confirm that utilities and necessary services are being maintained.

Find out what insurance is in place and whether the insurance company needs to know that the property is vacant.

And begin gathering the documents and information you already have.

That might include:

Trust or estate documents
Death certificate
Mortgage or loan information
Homeowners insurance information
HOA information, if applicable
Records of significant improvements or repairs

Don’t worry if you don’t have everything.

Part of my job is helping determine what additional real estate information we need and where we may be able to find it.

And don’t wait until you receive offers to start addressing questions about the paperwork. If something needs attention, I’d much rather discover it while we’re preparing the property than after a buyer is waiting for an answer.

3. Don’t Empty the House Too Quickly

When families inherit a home, there can be a strong temptation to start clearing things out immediately.

Sometimes that’s exactly what needs to happen.

But before dumpsters arrive or everything is donated, I like to slow that part down just enough to make sure we’re not creating another problem.

There may be important papers mixed in with ordinary household items.

Family members may want certain belongings.

And some things that look valuable may have very little resale value, while something nobody thought much about may actually be worth selling.

If possible, let the appropriate family members identify anything personally meaningful before the larger cleanout begins.

Then we can decide what should happen with what’s left.

4. Don’t Assume You Know What the Contents Are Worth

This is an area where professional input can be surprisingly helpful.

Markets for household goods change.

Things that were difficult to sell several years ago can become popular again, while items family members remember as valuable may have very little demand today.

That’s why I like to get input from people who actually sell these things.

Depending on what’s in the home, that might mean an estate-sale professional, auction company, consignment store or another specialist.

They see what buyers are purchasing right now.

That can be much more useful than relying on what something originally cost, what a family member remembers it being worth, or what a well-meaning neighbor thinks it should sell for.

Once we have better information, the family can decide what makes sense to sell, donate, keep or dispose of.

If dealing with the house and everything in it already feels overwhelming, you may also find this helpful:

5. Think About the Date-of-Death Value Before You Change the House

Before making substantial improvements to an inherited home, there is another question worth asking:

Will your CPA or tax professional need a date-of-death valuation?

For inherited property, the home’s fair market value at the owner’s date of death can be important in determining its tax basis.

You may hear this discussed in connection with a step-up in basis.

Exactly how those rules apply to your situation is a question for your CPA or other qualified tax professional.

But from the real estate side, it can be helpful to think about the valuation early—particularly before substantially changing the property’s condition.

When I’m handling the sale of an inherited home, I can prepare a formal retrospective valuation report when appropriate.

If your tax professional determines that something different is needed, such as a licensed appraisal, then that’s the direction you should take.

The point is simply to ask the question early enough to gather the right information.

For more technical information about basis, see IRS Publication 551 — Basis of Assets.

6. Don’t Automatically Assume You Have to Sell

Inheriting a home doesn’t automatically mean selling it is the right choice.

Depending on the property and the family’s circumstances, the choices might include:

Keep it. Rent it. Sell it.

Each has different financial and practical considerations.

If you’re considering keeping or renting the property, there may be questions for your CPA, attorney, financial advisor, insurance professional or property manager.

From the real estate side, I can help you understand what the property may be worth, what it might reasonably rent for, what the current market looks like and what selling would involve.

Then you can compare the choices with better information.

Sometimes selling will clearly make the most sense.

Sometimes it won’t.

The goal isn’t for me to make that decision for you. It’s to help you get the information you need to make it confidently.

7. Don’t Start Remodeling Until We Know Whether It Makes Sense

Families sometimes assume they need to fix everything before calling a real estate broker.

Please don’t.

I’d much rather see the property exactly as it is.

Some improvements can absolutely be worthwhile.

Others may cost more than they’ll return.

And sometimes a project that appears simple leads to another project, which leads to another.

Time matters too.

If improvements take months to complete, we need to consider carrying costs, the family’s time and effort, and whether delaying the sale could mean missing a stronger selling period.

Sometimes professional cleaning, landscaping, thoughtful presentation, staging or a few carefully selected improvements are all that’s needed.

Sometimes selling largely as-is makes more sense.

We can look at the choices together, gather whatever information we need, and then you can decide what makes sense for your situation.

Related resource: Should You Fix Up an Inherited Home Before Selling?

8. Look at the Numbers Before Making Big Decisions

Before spending substantial money preparing an inherited home, I like to develop a realistic picture of the numbers.

That includes an estimated selling range, likely selling expenses, preparation costs we’re considering and estimated net proceeds.

Knowing the approximate net can make other decisions easier.

For example, spending $20,000 on improvements may sound like a lot until we have reason to believe those improvements could substantially improve the family’s outcome.

On the other hand, spending $20,000 to potentially gain $10,000 makes very little sense.

There may also be tax considerations that affect the family’s overall decision. Those belong with your tax professional, but I can help identify the real estate information they may need.

The goal is to make decisions using the best information we can reasonably gather rather than simply guessing.

9. Family Members May Not Always Agree

Inherited homes can involve several people with different priorities.

One beneficiary may want to sell immediately.

Another may believe the house should be remodeled first.

Someone may want to keep it.

Someone else may have strong opinions about what it’s worth.

And the person actually responsible for making the decisions may feel caught in the middle.

When you’re serving as successor trustee or otherwise responsible for the property, having good information can be enormously helpful.

We can look at the property’s value, likely costs, market conditions, preparation choices and other practical considerations so the person making the decision has something concrete to work from.

The goal isn’t necessarily to make every family member agree.

It’s to help the person responsible make a thoughtful, well-informed decision that they can explain and support.

You Don’t Need to Have Everything Figured Out Before We Talk

This may be the most important thing I can tell you.

You don’t need to empty the house first.

You don’t need to know what everything is worth.

You don’t need to decide whether to remodel.

You don’t need to know whether you’re selling.

And you certainly don’t need to arrive with perfectly organized paperwork.

We can start with what you know today.

Then we can identify the questions that actually need answers, determine which professionals may need to be involved and put the decisions in a logical order.

If you live far away, work long hours or have family responsibilities that make it difficult to manage everything yourself, I’m also happy to take direction from you and help get things done.

Sometimes simply having someone help organize the next steps makes the whole project feel much more manageable.

Your Next Step

If you’ve inherited a home in Los Angeles or Ventura County, or you’re serving as successor trustee and aren’t sure what to do first, you don’t have to wait until everything is organized before reaching out.

We can start with a conversation about the property, where things stand today and what questions are on your mind.

From there, we’ll figure out what actually needs attention now—and what can wait.

You don’t need to solve everything today. You just need to know what to do next.

A Final Thought

An inherited home can come with a long list of decisions. You don’t have to make all of them at once—and you don’t have to make them without good information.

— Janey Bishop
Independent Real Estate Broker
DRE #01838769