Inheriting a house in Phoenix can be both a blessing and a challenge. While it may provide financial opportunities, it also comes with responsibilities such as maintenance, taxes, and potential legal hurdles. If you’ve inherited a property and want to sell it, this guide how to sell an inherited house in Phoenix will walk you through the process to ensure a smooth and profitable transaction.
Step 1: Understand the Legal Aspects of Inheriting a House
Before listing the property for sale, it’s essential to address any legal matters related to inheritance. Here’s what you need to consider:
1. Probate Process
If the deceased did not establish a living trust, the property will likely go through probate. In Arizona, probate ensures the legal transfer of ownership. You may need to work with a probate attorney to navigate the process, which can take several months.
- Simplified Probate – Arizona allows a simplified probate process for estates valued under $100,000.
- Full Probate – If the estate exceeds this value, you may need to go through a formal probate process.
2. Check the Title and Mortgage Status
Ensure that the title is clear and there are no outstanding debts or liens on the property. If the home has a mortgage, you must determine whether you’ll pay it off or sell the home to cover the balance.
Step 2: Decide Whether to Sell, Rent, or Keep the House
Before selling, evaluate your options:
- Sell the house – Provides immediate cash, eliminates maintenance responsibilities.
- Rent it out – Generates ongoing passive income but requires property management.
- Move in – If it’s a desirable location and fits your needs, you can make it your primary residence.
Step 3: Prepare the House for Sale
Making your inherited home market-ready can help attract buyers and increase its value.
1. Declutter and Clean the Property
Remove personal belongings, old furniture, and unnecessary items to present a fresh and neutral space.
2. Make Necessary Repairs and Improvements
Fix any structural or cosmetic issues to increase the home’s value. Focus on:
- Roof and plumbing repairs
- Fresh paint and flooring updates
- Curb appeal enhancements
3. Get a Property Valuation
Hire a professional appraiser or real estate agent to determine the fair market value of the home. This helps set a competitive asking price.
Interested in selling your property in Ahwatukee, check our guide on Homes for Sale in Ahwatukee.
Step 4: Choose the Best Selling Method
There are several ways to sell an inherited house in Phoenix, each with its own advantages.
1. Sell to a Cash Home Buyer
If you need a fast and hassle-free sale, cash home buyers purchase properties in as-is condition without the need for repairs or realtor fees.
Pros:
- Close within days
- No repairs or staging needed
- No realtor commissions
Cons:
- May receive a lower offer than market value
2. List with a Real Estate Agent
A real estate agent can help market the home and attract the highest possible offer.
Pros:
- Potential for a higher sale price
- Professional marketing and negotiation
Cons:
- Longer selling timeline (30-60 days or more)
- Requires staging and home showings
- Realtor commissions (typically 5-6%)
3. Sell the Home Yourself (FSBO – For Sale By Owner)
Selling without an agent can save on commissions but requires handling marketing, negotiations, and paperwork yourself.
Pros:
- Avoid realtor fees
- Full control over the sale
Cons:
- More time-consuming and complex
- Requires knowledge of contracts and negotiations
Step 5: Understand Tax Implications
Selling an inherited home comes with tax considerations. In Arizona, you generally won’t owe inheritance tax, but you may need to account for capital gains tax.
1. Step-Up in Basis Rule
The property’s value is “stepped up” to its fair market value at the time of the original owner’s death. This reduces capital gains tax if you sell the house.
2. Capital Gains Tax
If you sell the home for more than the stepped-up value, you may owe taxes on the profit. However, if you sell quickly, the tax burden is usually minimal.
Step 6: Close the Sale
Once you accept an offer, the closing process typically includes:
- Title transfer and finalizing paperwork
- Paying off any remaining mortgage or debts
- Receiving the sale proceeds
Wrapping it Up
Selling an inherited house in Phoenix doesn’t have to be overwhelming. By understanding the probate process, preparing the home for sale, and choosing the best selling method, you can maximize your profits and streamline the transaction.
If you need assistance with selling your inherited home, our experienced real estate team can help with:
- Listing your home for sale with professional marketing and negotiations
- Preparing your property for a quick and profitable sale
- Providing fast, fair cash offers for an as-is sale
- Offering expert guidance on the local Phoenix real estate market
Contact our team today to get started with your home-selling journey!