The gross price is not the number that matters. What the estate actually nets is.
Certain items are ordinarily the seller's or the estate's regardless of who buys: property taxes up to the closing date, any mortgage or lien payoff, HOA arrears, and in some states a transfer tax. These come out of proceeds at closing. Exactly what's customary varies by state and is something the title company or the estate's attorney will confirm for your specific closing.
We're not going to claim a direct cash offer matches what a renovated house fetches on the open market. It doesn't, and any buyer who tells you otherwise is selling something. Here's the actual trade, laid out:
Higher gross price. Then subtract: agent commission on both sides, pre-listing cleanout or estate-sale costs, repairs and paint, staging, the buyer's inspection credits, and every month of taxes, insurance, and utilities from the day you inherit until the day it closes. Add travel if you're out of state, plus the risk that a financed buyer falls through and you restart.
Lower gross price. Then subtract: essentially nothing. No commission, no repairs, no cleanout, no staging, no inspection retrade, no carrying costs beyond closing, no travel. What you're paid is close to what the estate keeps, and you know the figure before you commit to any work.
Which one wins depends entirely on the property. A tidy, updated house in a strong market with a local heir who can manage a listing should be listed. A full, dated, vacant house with four out-of-state heirs and an open probate case usually shouldn't be. Most of what we buy is firmly the second kind.
People often assume they'll owe tax on the full sale price of an inherited house. That's frequently not how it works, because inherited property is generally treated differently from property you bought yourself — but the specifics depend on the estate, the property, your state, and the timing.
Please do not take tax planning from a website, including this one. Talk to a CPA or tax attorney before you sell. It's usually a short, inexpensive conversation, and it's the single most valuable professional call most heirs make.
If a mortgage, HELOC, or reverse mortgage is still attached to the property, it is normally paid off from the sale proceeds at closing. The title company or closing attorney requests a payoff figure from the lender and lists it on the settlement statement, so the estate sees exactly what was paid and what remains. If the balance is larger than you expected, raise it early with the estate's attorney.
Taxes and HOA dues don't stop accruing after a death. At closing, unpaid amounts up to the closing date are typically settled out of proceeds, and any HOA lien has to be cleared for title to transfer. How taxes are prorated differs from place to place, which is why the title company confirms the figures. We buy condos and townhomes with arrears attached — see what we buy.
The expense that rarely shows up on a comparison is time. Every month an estate house sits unsold, someone is paying taxes, insurance, utilities, and upkeep, and vacancy coverage often costs more than a standard policy. Those payments come out of the same pot the heirs eventually split. Our page on vacant inherited property walks through what an empty house usually absorbs each month.
On a listing, emptying the house is usually a cost the estate pays before the first showing: dumpsters, haulers, an estate-sale company, sometimes a storage unit. Selling to us, removal and disposal of whatever is left happens after closing at our expense, and the offer isn't reduced because the house is full. Details are on our as-is and cleanout page.
The fairest comparison is net to net. Ask a local agent for an estimated net sheet that subtracts commission, expected repairs, cleanout, and the months of carrying costs, then lay it beside our written offer. If the listing clearly wins, list it — we would rather you know than guess. When you want a figure to compare, tell us about the property.
A written offer costs you nothing and gives you a real figure to compare a listing against.
Tell Us About the Property