Step 1: Confirm who can sign
An inherited house can only be sold by someone with legal authority. In probate, that's the executor (named in the will) or administrator (appointed when there's no will), once the court issues Letters — the court document proving their authority. If the house is in a living trust, it's the successor trustee. Heirs without that authority can't sell yet, no matter how much everyone agrees.
Step 2: Know which kind of sale you're in
Trust sale
A trust sale works much like a normal sale. No court confirmation is needed. The trustee must still act prudently and keep beneficiaries informed. See the successor trustee guide.
Probate sale with full IAEA authority
Under the Independent Administration of Estates Act (IAEA), an executor or administrator with full authority can sell without a court hearing. They give heirs a Notice of Proposed Action, and heirs have 15 days to object. If no one objects, the sale proceeds like a normal escrow.
Probate sale with court confirmation
With limited authority, or if someone objects, the sale needs court confirmation. That has its own rules, explained next.
How court confirmation works
The accepted offer must be at least 90% of the appraised value. The sale is then presented at a court hearing, where other buyers can show up and overbid. The first overbid must be at least 10% more on the first $10,000 of the original offer plus 5% more on the amount above $10,000. The judge confirms the highest bid.
A simple example: suppose the accepted offer is $500,000. Ten percent of the first $10,000 is $1,000. Five percent of the remaining $490,000 is $24,500. Together that's $25,500, so the minimum first overbid is $525,500.
For buyers, this means their offer can be topped in the courtroom. For families, it means the process is public and adds a hearing to the timeline.
Step 3: Get the house ready
- Clean-out and estate sale. Set aside keepsakes and important papers first, then consider an estate sale company for the rest.
- Basic repairs vs. as-is. Small fixes and a deep clean often pay for themselves; major remodels rarely make sense for an estate. Selling as-is is common.
- Disclosures. Sales by an executor, administrator or trustee in the course of administering an estate or trust are generally exempt from the Transfer Disclosure Statement (Civil Code 1102.2), but sellers must still disclose known material facts and provide other required disclosures, such as natural hazard disclosures.
- Local point-of-sale requirements. Some cities require inspections or certificates before a sale. Check early so it doesn't delay escrow.
Step 4: Price it carefully
The date-of-death appraisal sets the value for tax and court purposes, but the list price should reflect what buyers will pay today. Those two numbers may differ. Don't rely on online estimates alone — they can't see the condition inside the house. A real estate agent's comparative analysis, grounded in recent nearby sales, is a better guide.
Step 5: Plan for the timeline
Trust sales and full-IAEA probate sales usually follow normal escrow timing. Court confirmation adds weeks for the hearing [VERIFY: typical]. Overall, probate typically takes 9 to 18 months, longer if there are disputes or a complex estate.
Investor "cash offer" letters
After a death, families often receive letters and calls offering to buy the house for cash. Some are legitimate; many are priced well below market. Before signing anything, ask:
- Do I (or does anyone yet) have the legal authority to sign?
- What is the house actually worth on the open market?
- Who is the buyer, and what fees, inspections or conditions apply?
- Can the buyer assign the contract to someone else?
- Has the estate's attorney reviewed it?
How Will helps
Will lists, prepares and markets inherited homes, coordinates with the attorney and the fiduciary (the executor, administrator or trustee), and handles court confirmation sales in Southern California. If the house is elsewhere in California, he can refer you to a trust and probate real estate agent in that area. Talk with Will.