How to Sell an Inherited House in Los Angeles
Who can sign, when you can list, whether the court has to approve the sale, cash offers and taxes.
I’m Bill Gross, The LA Probate Expert, brokered by eXp Realty. Short answer: first find out who can sign. In a probate, that’s the executor or administrator once the court issues Letters. In a living trust, it’s the successor trustee. Then get a real value, list the house as-is on the open market, and close through escrow on the path the court allows. Court confirmation IS required under limited authority and MAY BE required under full authority. A trust sale does not go to court.
Who can sign?
In a probate, the executor or administrator signs once the court issues Letters. In a living trust, the successor trustee signs under the trust, and the court is not part of the sale. The side-by-side is in the “Probate or trust: who signs” table on families & executors. If you are not sure which one you have, ask the estate attorney first. The full comparison is in trust sale vs. probate sale in California. If you are still deciding whether to sell at all, start with what to do with a house you just inherited.
5 steps to sell an inherited house in Los Angeles
- Confirm authority. Letters for a probate, the trust for a trust sale.
- Secure and insure the house.
- Get a real value, not a Zestimate. See what is the house worth.
- Pick the path. Under full authority, a Notice of Proposed Action (DE-165, at least 15 days). Or court confirmation, with an overbid of price + 5% + $500 and a cashier’s check for 10% of the bid. See how a court-confirmed probate sale works in Los Angeles, when a sale needs court confirmation and how probate overbids work.
- List as-is and close. See selling as-is and the seller net sheet.
The detail for each step is in the executor’s step-by-step guide and the successor trustee’s step-by-step guide.
Cash offer or open market?
| Question | Off-market cash offer | Open-market listing |
|---|---|---|
| Speed | Fast, one buyer | Follows the listing and the path the court allows |
| Price | $465,000 cash offer from a “listing agent” | Listed and sold for $599,900, with no money spent on repairs |
| Who protects the estate | No market test of the price | Open exposure tests the price for the estate and the heirs |
In this real sale, listing the home put about $134,900 more in the estate than the cash offer. Read Case Brief #01. For the side-by-side on net proceeds, see probate broker vs. a cash offer.
Taxes
Usually the tax is on the change in value after the date of death, not on what your parents paid. That is the step-up in basis. It is not automatic in every case. If someone keeps the house, Proposition 19 is a separate property tax question. Use the inherited-sale tax worksheet, then take it to a CPA.
When heirs disagree
California probate is not a family vote. Read selling when heirs disagree, and if the estate is already in litigation, selling a house in a litigated estate in Los Angeles.
Next step
Schedule a consultation or call (310) 210-0008.
Frequently asked questions
Who can sell an inherited house in Los Angeles?
It depends on how the house passed. In a probate, the executor or administrator signs once the court issues Letters. In a living trust, the successor trustee signs under the trust, and the court is not part of the sale. If you are not sure which one you have, ask the estate attorney first.
Do I have to wait until probate is over to sell?
No. Listing can often start once Letters issue. Most Los Angeles County probates run 9 to 18 months, and you do not have to wait for the end to list. The closing still follows the path the court allows.
Does the court have to approve the sale?
Sometimes. Court confirmation IS required when the executor has limited authority. It MAY BE required with full authority, for example when an heir objects to the Notice of Proposed Action. A trust sale does not go to court.
Should I take a cash offer on an inherited house?
Test the open market first. A real example from a home on Scudder Ct in Carson: a “listing agent” brought a $465,000 cash offer. The home was listed instead and sold for $599,900 with no money spent on repairs, about $134,900 more for the estate. For the side-by-side on net proceeds, see probate broker vs. a cash offer.
Do I have to fix up an inherited house before selling?
No. Many inherited houses sell as-is. Whether to spend estate money on repairs is a decision for the executor or trustee, with the attorney, before the house is listed.
Will I owe tax when I sell an inherited house?
Usually the tax is on the change in value after the date of death, not on what your parents paid. That is the step-up in basis. It is not automatic in every case, so take the numbers to a CPA. Property tax is a separate question under Proposition 19.
About the author. Bill Gross, The LA Probate Expert, brokered by eXp Realty. Licensed since 1989, broker since 2005. Probate-focused broker for executors, administrators, trustees and estate attorneys in Los Angeles County. Host of Probate Weekly, The Estate Planning Podcast and The Reverse Mortgage Podcast.
DRE #01022275. Brokerage: eXp Realty of California, Inc., DRE #01878277. 8383 Wilshire Blvd #800, Beverly Hills, CA 90211 · (310) 210-0008. Bill is a real estate broker, not an attorney and not a Probate Referee.
Educational only. California probate and trust administration are fact-specific. Confirm authority, court requirements, and tax consequences with the estate’s attorney and tax advisor.