Selling an inherited house in Pennsylvania
If you’re here, you probably just lost someone. I’m sorry. You don’t have to figure this all out today.
I’m Collin Boyer, an agent with Real of Pennsylvania, and I help families with estate homes and land across Pennsylvania and Maryland. I also build homes, build or place manufactured homes, and develop and subdivide land. If the estate includes land, or the family would rather split off a lot or build than sell everything, I can lay out those options too.
Below is the order things usually go in, the deadlines that matter, and your options for the house. I’m not an attorney, so you’ll want an estate attorney for the legal side, and I’ll work right alongside them. Call or text me at 717-991-5085.
The short version
Find out how the house passed: joint owner, trust, will or no will.
Get legal authority to sell, usually letters from the county Register of Wills.
Secure and insure the house.
Get a date-of-death value.
Watch the inheritance tax dates: a 5% discount if paid within 3 months, delinquent after 9 months.
Decide: keep it, rent it, list it, sell it directly, or build on the land.
Close, with the proceeds going to the estate.
Step by step
1. Find out how the house passed.
- If it was owned jointly with rights of survivorship, it may already belong to the surviving owner.
- If it’s in a trust, the trustee usually handles the sale.
- Otherwise it goes through the estate. Your attorney will tell you which applies.
2. Get authority to sell.
- In PA, the estate is opened with the Register of Wills in the county where the person lived.
- The executor named in the will gets Letters Testamentary. If there’s no will, an administrator gets Letters of Administration.
- Those letters are what the title company will ask for.
3. Secure the house.
- Call the insurance company. Many policies change when a house sits vacant.
- Keep the heat on in winter, or have it winterized.
- Change the locks if a lot of people have keys.
4. Get a value.
- The date-of-death value matters for the inheritance tax return. It also generally sets the basis for capital gains.
- I can pull a market analysis. Your attorney may also want a formal appraisal.
5. Know the inheritance tax (PA Department of Revenue).
- 0% for a surviving spouse, or a parent inheriting from a child 21 or younger
- 4.5% for children, grandchildren and other lineal heirs
- 12% for brothers and sisters
- 15% for other heirs
The tax becomes delinquent nine months after the date of death. Pay within three months and you get a 5% discount. Property owned jointly between spouses is exempt.
6. Decide what to do with the house.
- Keep it or rent it, if an heir wants it and can carry it.
- List it as-is, if it’s livable and the family doesn’t want to put money into it.
- Fix a few things, then list. I’ll tell you which fixes are worth it.
- Sell it directly to me, if there are major repairs, heirs out of state, or everyone just wants it done.
- Build or subdivide, if there’s land and the family would rather develop it.
7. Close.
The title company pays off any mortgage, liens and back taxes, then sends the proceeds to the estate. Your attorney handles distribution to the heirs.
Do I have to fill out a seller disclosure?
Usually not. Pennsylvania’s Seller Disclosure Law exempts transfers by a fiduciary administering a decedent’s estate (68 Pa.C.S. §7302). But if the executor actually knows about a material defect, it still has to be disclosed (PA REALTORS®). When in doubt, disclose.
Will I owe capital gains tax?
Inherited property generally gets a “stepped-up” basis to its value on the date of death (IRS Publication 551). If you sell soon after, there may be little or no gain. Ask a CPA about your situation.
Cleaning it out
You don’t have to empty the house before you call me.
Heirs out of state?
I can handle the sale with heirs signing remotely: video walk-throughs, e-signatures, and mobile or mail-away closings through the title company.
If I’m the one buying, I’m buying for myself, not acting as your agent, and I’ll tell you that in writing before you sign anything.
This page is general information, not legal or tax advice. Talk to an estate attorney and a CPA about your situation.
Areas I serve
I work all of Pennsylvania and Maryland. Most of my work is in Central PA: Cumberland, Dauphin, York, Lancaster, Adams, Franklin, Perry and Lebanon counties. I also work across the state, from Western PA to the Lehigh Valley and the Poconos and Northeast PA. In Maryland, I cover Frederick, Carroll, Washington, Harford, Baltimore County and Cecil.
Inherited house FAQ
How long do you have to sell an inherited house in Pennsylvania?
There’s no set deadline to sell. The deadlines that matter are for the inheritance tax: it’s delinquent nine months after the date of death, with a 5% discount if paid within three months. Taxes, insurance and utilities keep running while you decide.
How much is Pennsylvania inheritance tax on a house?
It depends on who inherits: 0% for a surviving spouse, 4.5% for children and other lineal heirs, 12% for siblings and 15% for other heirs. It’s figured on the value, and it’s handled through the estate’s inheritance tax return.
Do I pay taxes if I sell an inherited house?
Pennsylvania inheritance tax applies whether or not you sell. For federal capital gains, inherited property generally gets a stepped-up basis to its date-of-death value, so selling soon after often means little taxable gain. Check with a CPA.
Can I sell the house before the estate is settled?
Often, yes. Once the executor or administrator has letters from the Register of Wills, they can usually sell estate real estate. Whether heirs must sign off depends on the will and the situation. Your estate attorney will tell you.
Does an estate have to fill out a seller disclosure in PA?
Generally no. Transfers by a fiduciary administering a decedent’s estate are exempt from Pennsylvania’s Seller Disclosure Law. But known material defects still have to be disclosed.
Do I have to clean out the house before selling?
No. You can sell it with contents, list it as-is, or clear it out first. I’ll give you my honest read on which makes sense for the house.