What to Consider When Selling an Inherited Home: Taxes, Successions, Costs & How to Maximize Your Net Profit

Written by Elliott Grand with SHP Companies
(Largest cash buyers in South Louisiana)
elliott@shpcompanies.com
225-242-9646

Inheriting a home can feel overwhelming—especially if you’re dealing with paperwork, family decisions, family disagreements, property clean-out, or uncertainty about what the house is actually worth. Many heirs rush into repairs, dumpsters, cleaning services, or expensive renovations before understanding their options.

In reality, there are smart ways to simplify the process and maximize the amount of money you keep, especially if you understand successions, tax basis reset rules, and how direct cash buyers can reduce your out-of-pocket costs.

This guide breaks everything down in simple, practical terms.

1. You May Be Able to Reset Your Tax Basis to Today’s Market Value

One of the biggest financial advantages of inheriting a home is the step-up in basis.

What is a step-up in basis?

When someone passes away, the IRS allows heirs to “reset” the value of the property to the current fair market value as of the date of death.

Why it matters:

If you sell the property at or near today’s market price, you typically owe little to no capital gains tax.

Example:

• Your parent bought the home in 1995 for $120,000.
• It’s worth $260,000 today.
• Your new tax basis becomes $260,000.
• If you sell it for close to $260K, your taxable gain is $0.

This is one of the biggest reasons it’s smart to get a current market evaluation before deciding what to do with the property.

2. Understanding Successions: Short vs. Long Succession

To legally sell an inherited home in Louisiana, you must complete a succession (other states call it probate). There are two types:

Short Form Succession (Simple Succession)

Used when:

• The estate is small, OR
• All heirs agree, OR
• Assets are straightforward and no disputes exist

Cost:

Typically $300 – $2,000 depending on the attorney and other details.

Timeline:

Usually 1–3 weeks.

Long Form Succession

Required when:

• The estate has debts
• There are disputes between heirs
• There is no will
• More complex assets need court approval

Cost:

Typically $2,000 – $6,000+, depending on complexity.

Timeline:

Often 1–2 months, sometimes longer if issues arise.

3. Why You Should Talk to a Cash Buyer Before Spending Money on Clean-Outs or Renovations

A common mistake heirs make is paying for:

• Dumpsters
• Junk removal
• Cleaning crews
• Flooring
• Painting
• Foundation repairs
• Roof repairs
• Landscaping
• Mold treatments
• Plumbing or electrical fixes

These costs add up fast and often don’t increase the final selling price enough to justify the expense.

Cash buyers have economies of scale.

A good cash buyer:

• Uses their own crews
• Gets bulk labor pricing
• Avoids retail repair costs
• Buys homes as-is, even full of belongings
• Can close in as little as 3 days
• Covers closing costs
• Charges no commissions
• Saves you from spending thousands before even listing the home

You may net more by selling as-is.

Instead of spending $2,000–$20,000+ cleaning and updating a property, you may keep more cash by selling directly to an experienced investor who can absorb the work.

4. Cost Breakdown: Agent Listing vs. Selling Direct to a Cash Buyer

Here’s a simple comparison of what sellers typically experience:

📊 Cost & Timeline Comparison

5. Why Many Heirs Prefer Selling to a Cash Buyer

Selling an inherited home involves time, emotion, and often unexpected expenses. A real cash buyer can simplify the entire process.

Top Advantages of Selling to a Cash Buyer

• No repairs
• No clean-out required (leave anything you don’t want)
• Fast closing — as little as 72 hours
• No commissions
• No agent fees
• No appraisal delays
• No buyer financing
• Buyer handles all closing costs
• You get certainty during an already stressful situation

6. Final Thoughts: Make the Smartest Decision for Your Inherited Property

If you recently inherited a home, you have options—and understanding taxes, successions, and true out-of-pocket costs can help you keep more of your inheritance.

Before hiring cleaners, ordering dumpsters, or paying for repairs, consider talking to a reputable, local cash home buyer. Many heirs are shocked to learn they can net more money by selling as-is and avoiding unnecessary expenses.

Written by Elliott Grand with SHP Companies
(Largest cash buyers in South Louisiana)
elliott@shpcompanies.com
225-242-9646