Selling an inherited home
Selling a home you've inherited means handling a sale and a loss at the same time — usually under rules nobody explains. The short version: authority to sell comes from the probate court's paperwork, not the will alone; the federal stepped-up basis rule means most estates owe little or no capital-gains tax on the sale; and in Maryland, an inheritance tax exists but close family is exempt. Kelly Balmer handles estate sales across DC, Maryland and Virginia with the same personal attention as every listing — calmly, and at the family's pace.
First: who actually has authority to sell
A will names an executor, but the legal power to sign a listing agreement and a deed comes from the court-issued paperwork — commonly called "letters" — appointing a personal representative. Where you get them depends on where the home is:
| Jurisdiction | Who appoints the personal representative | Authority |
|---|---|---|
| Washington, DC | Superior Court, Probate Division | DC Code §20-741 gives the representative broad default power to sell; an heir's formal objection can require a court hearing first |
| Maryland | The county Register of Wills (with the Orphans' Court overseeing probate) | Est. & Trusts §7-401 lets the representative sell without separate court approval in most estates |
| Virginia | The Circuit Court clerk's office — Virginia has no separate probate court | Va. Code §64.2-500 et seq.; the executor qualifies with the clerk and acts under the will's authority |
Until letters are issued, nobody can bind the estate to a sale — but the groundwork (valuation, prep decisions, even preparing the listing) can start in parallel, which is often where Kelly's involvement begins.
The tax picture — usually better than heirs fear
- Stepped-up basis (federal). An inherited home's cost basis resets to its fair market value at the date of death (IRS Publication 551). Capital-gains tax applies only to appreciation after that date — so a prompt sale near the date-of-death value typically produces little or no taxable gain, even if the home was bought decades ago for a fraction of its worth.
- Maryland's inheritance tax — with big exemptions. Maryland charges 10% on inheritances to non-exempt recipients, but spouses, children and other descendants, parents, grandparents, siblings and stepchildren are exempt (Md. Tax-General §7-203). For most heirs, it never applies. DC and Virginia have no inheritance tax.
- Estate taxes rarely reach typical estates. Maryland's estate-tax exemption is $5 million and DC's is roughly $4.99 million for 2026 deaths — thresholds most estates never approach. Virginia has no estate tax.
Every estate has its own facts — the numbers above are the general rules, and the estate's attorney or tax professional confirms how they apply.
How the sale itself usually runs
- Letters first, listing second. Title companies will require the court paperwork before settlement; getting it early keeps the timeline honest.
- Heirs aligned early. Where several heirs share the decision, the pricing conversation happens before the sign goes up — Kelly runs that conversation with data, which keeps it about the market rather than the memories.
- As-is is a real option. Estate homes often sell as-is honestly and well; sometimes a modest, targeted prep returns several times its cost. Kelly prices both paths — see the prep checklist — and the family chooses.
- The paperwork is different. Estate sales carry their own contract language, disclosure rules and settlement requirements; Kelly coordinates directly with the estate's attorney and the title company so the family doesn't have to translate between them.
How Kelly handles estate sales
Kelly handles estate sales across DC, Maryland and Virginia — including for heirs who live out of state and need someone local to quarterback everything: the clean-out, the contractor, the photographer, the settlement. She's licensed in all three jurisdictions, works with the family's attorney rather than around them, and handles every sale personally. The pace is the family's; the process is hers to carry.
Vice President & Partner, Mollaan Babbington Group at Compass · Licensed in DC · MD · VA
This guide is general information, not legal or tax advice. Probate procedure and tax treatment depend on the estate's specific facts and change over time; the figures above are 2026 rules from the official sources linked. Estate matters call for a probate attorney — Kelly works alongside yours, and can suggest experienced local ones if you don't yet have one.
Inherited-home sales, asked and answered
Can I sell an inherited house before probate is complete?
Often, yes — in DC and Maryland the personal representative generally has authority to sell during administration once letters are issued, and in Virginia the qualified executor acts under the will. What you can't do is settle a sale before the court paperwork exists. Preparation, valuation and even listing groundwork can usually begin in parallel.
Do all the heirs have to agree to sell?
It depends on the estate and the jurisdiction. Formal authority typically runs through the personal representative, but who must actually sign varies — in many multi-heir situations every owner of record joins the deed, and in DC a formal objection from an interested party can force a court hearing. The estate's attorney confirms who signs; Kelly's job is getting everyone looking at the same market data early, which resolves most disagreements before they harden.
Will we owe capital-gains tax when we sell?
Usually little or none. Federal law resets the home's cost basis to its market value at the date of death, so tax applies only to appreciation after that point. A home sold reasonably soon after inheritance typically shows minimal gain. The estate's tax professional confirms the specifics.
What is Maryland's inheritance tax — and does it apply to me?
Maryland charges 10% on inheritances to non-exempt recipients — but spouses, children and other descendants, parents, grandparents, siblings and stepchildren are all exempt by statute. For most people inheriting a parent's or grandparent's home, it simply doesn't apply. DC and Virginia have no inheritance tax at all.
Should we renovate the house or sell it as-is?
It's a math question, not a pride question. Some estate homes net more sold honestly as-is; others return several times the cost of targeted prep — paint, floors, clean-out, light staging. Kelly prices both scenarios with real comparables so the family chooses with numbers, not guesses.
We live out of state — can Kelly handle it remotely?
Yes; that's common. Kelly coordinates the clean-out, contractors, photography, showings and settlement locally, keeps the family and the estate's attorney updated, and runs signatures electronically. The whole sale can run to settlement without the family making a single trip.
A steady hand for a hard sale.
Tell Kelly where things stand — before probate, mid-process, or ready to list — and she'll map the path from here to settlement.