Learn the steps to sell an inherited property in Florida, from probate types to tax implications.
Understanding Florida Probate Law
Before you can legally sell an inherited property in Florida, the estate typically needs to go through probate—the court-supervised process of distributing a deceased person's assets. Florida Statutes Chapter 733 governs probate proceedings, and understanding your options can save you significant time and money.
Types of Florida Probate
Summary Administration (Florida Statute 735.201): This streamlined process is available when the estate value is under $75,000 (excluding exempt homestead property) OR when the decedent has been dead for more than two years. Summary administration typically takes 1-3 months and requires less court involvement. You'll file a Petition for Summary Administration, and once the court issues an Order of Summary Administration, you can transfer the property.
Formal Administration: Required for estates exceeding $75,000. This process involves appointing a Personal Representative (executor), inventorying assets, paying creditors, and distributing remaining assets. Formal administration typically takes 6-12 months but can extend longer if disputes arise or the estate is complex.
Disposition Without Administration: For very small estates (assets less than exempt property and final expenses), you may avoid probate entirely under Florida Statute 735.301.
The Homestead Exemption Complication
Florida's homestead laws are among the strongest in the nation. Under Article X, Section 4 of the Florida Constitution, if the deceased was married, the surviving spouse has rights to the homestead property that may supersede the will. If you're inheriting a homestead property, consult a probate attorney to understand any restrictions on sale.
Step-by-Step: Selling During Probate
Step 1: Determine if Probate is Required. If the property was held in a living trust, had a transfer-on-death deed, or was jointly owned with rights of survivorship, probate may not be necessary.
Step 2: Open the Probate Case. File the will (if one exists) and a Petition for Administration with the circuit court in the county where the deceased resided. The court will appoint a Personal Representative.
Step 3: Inventory and Appraise. The Personal Representative must file an inventory of estate assets within 60 days of appointment. Getting a professional appraisal establishes fair market value.
Step 4: Notify Creditors. Florida law requires publishing a Notice to Creditors in a local newspaper. Creditors have 3 months from the first publication (or 30 days from direct notice) to file claims.
Step 5: Obtain Court Approval to Sell. For formal administration, the Personal Representative typically needs court approval before selling real property. This involves filing a Petition to Sell Real Property and may require a hearing.
Step 6: Close the Sale. Once approved, the Personal Representative can sign the deed and transfer ownership to the buyer.
Your Three Options for Selling
Option 1: List with a Real Estate Agent
Best for: Move-in ready homes when you have 4-6 months to wait and can handle repairs and staging.
Pros: Potentially higher sale price through MLS exposure; professional marketing and negotiation.
Cons: 5-6% commission ($15,000-$18,000 on a $300,000 home); repair costs averaging $5,000-$15,000; holding costs during listing period (mortgage, taxes, insurance, utilities); multiple showings disrupting your schedule; deals falling through due to buyer financing issues (happens in roughly 15% of transactions).
Timeline: 90-180 days from listing to closing.
Option 2: For Sale By Owner (FSBO)
Best for: Experienced sellers comfortable with legal paperwork and marketing.
Pros: Save the listing agent commission (2.5-3%); maintain control over showings and negotiations.
Cons: Still typically pay buyer's agent commission (2.5-3%); limited MLS exposure; must handle all disclosures, contracts, and legal requirements; FSBO homes statistically sell for 5-10% less than agent-listed homes according to NAR data; significant time investment.
Timeline: 90-180+ days.
Option 3: Sell to a Cash Buyer
Best for: Properties needing repairs, out-of-state heirs, situations requiring speed, or when multiple heirs want a quick resolution.
Pros: Close in as little as 7-14 days; sell 'as-is' with no repairs, cleaning, or staging; no commissions or typical closing costs; certainty of sale (no financing contingencies); can often close during probate with proper court approval; one showing instead of dozens.
Cons: Offer will be below full retail market value (typically 70-85% of ARV depending on condition).
Timeline: 7-21 days from accepted offer to closing.
Tax Implications Every Heir Should Know
The Stepped-Up Basis (Your Biggest Advantage)
Under IRS rules, when you inherit property, your 'cost basis' for capital gains purposes is 'stepped up' to the fair market value at the date of death—not what the deceased originally paid. This is one of the most valuable tax benefits in the entire tax code.
Example: Your parents bought a house in 1985 for $50,000. At the time of death, it's worth $300,000. If they had sold it, they would owe capital gains tax on $250,000 of profit. But because you inherited it, your basis is $300,000. If you sell for $300,000, you owe $0 in capital gains tax.
Key Takeaway
Florida Estate Taxes
Good news: Florida has no state estate tax or inheritance tax. The federal estate tax only applies to estates exceeding $12.92 million (2023), so most Florida heirs owe nothing at the state or federal level.
Property Tax Considerations
Florida's Save Our Homes cap limits annual property tax assessment increases to 3% for homesteaded properties. When the property transfers to a new owner (including heirs who don't claim homestead), it will be reassessed at current market value—potentially causing a significant property tax increase. Factor this into your holding cost calculations.
1099-S Reporting
When you sell, the title company will issue a 1099-S reporting the sale to the IRS. Keep documentation of the stepped-up basis (death certificate, appraisal at date of death) to properly report any gain.
Common Challenges with Inherited Properties
Multiple Heirs with Different Goals
When siblings or other heirs inherit property together, disagreements are common. One heir may want to keep the property, another wants to sell, and a third wants top dollar regardless of timeline. A cash sale provides one clear number that can be split according to the will or intestate succession laws, eliminating ongoing disputes.
Out-of-State Heirs
Managing a Florida property from another state is expensive and stressful. You'll need to arrange for lawn care, security checks, insurance, and repairs—all remotely. Properties sitting vacant can deteriorate quickly in Florida's humid climate and may become targets for vandalism or squatters.
Deferred Maintenance
Elderly homeowners often defer maintenance in their final years. Inherited properties frequently need new roofs ($15,000-$25,000), HVAC systems ($5,000-$10,000), updated electrical or plumbing, and cosmetic updates. These costs can exceed available cash reserves.
The Clean-Out Problem
A lifetime of belongings doesn't disappear. Professional estate clean-out services cost $2,000-$5,000 for a typical home. If you're selling as-is to a cash buyer, you can take what you want and leave the rest.
Why Many Heirs Choose Cash Sales
Speed: Close in days, not months—critical when you're paying insurance, taxes, and maintenance on a property you don't want.
Simplicity: One offer, one decision, no negotiations with multiple parties.
No Repairs: We buy properties in any condition—hoarded, damaged, outdated, or neglected.
Probate Coordination: We work directly with your probate attorney to ensure all court requirements are met and the sale proceeds legally.
Fair Split: The title company distributes proceeds according to your instructions, eliminating disputes about who did what work or contributed what money.
Getting Started
If you've inherited a Florida property and want to explore your options, we offer free, no-obligation consultations. We'll explain exactly how we calculate our offer and help you determine whether a cash sale or traditional listing makes more sense for your situation.
Contact us today with basic information about the property, and we'll provide a preliminary cash offer within 24 hours. If you're still in probate, we can explain how the process works and what timeline to expect.