Inherited a Property? What Texas Homeowners Need to Know
A compassionate guide to navigating inherited property decisions during a difficult time.
Inheriting a property often comes during one of life's most difficult moments – the loss of a parent, spouse, or loved one. While grieving, you're suddenly faced with important decisions about the property they left behind.
This guide is here to help you understand your options and make the best decision for your situation – whether that's keeping the property, renting it out, or selling it.
First Things First: Understanding Probate in Texas
Before you can sell an inherited property, you typically need to go through probate – the legal process of transferring ownership from the deceased to the heirs. In Texas, there are several types of probate:
Independent Administration (Most Common)
If the will names an independent executor, they can manage the estate with minimal court oversight. This is faster and less expensive.
Dependent Administration
Requires court approval for most actions. Takes longer and costs more, but provides more oversight.
Muniment of Title
A simplified process when there are no debts and a valid will. Can transfer property in as little as 30 days.
Affidavit of Heirship
Used when there's no will. Two witnesses sign an affidavit identifying the legal heirs.
Good news: Even during probate, you can often begin the selling process. We work with estates regularly and can help navigate this process.
Not sure where to start with an inherited property?
We can provide a no-obligation cash offer and help you understand your options – even if probate isn't complete yet.
Get Your Cash OfferThe Hidden Costs of Keeping an Inherited Property
Many people inherit a home thinking they'll "figure out what to do later." But the costs of holding onto an inherited property add up quickly:
Property Taxes
Texas property taxes are due regardless of whether you live there. Average is 1.8% of assessed value annually.
Insurance
Vacant homes require special insurance that costs 50-100% more than occupied home insurance.
Maintenance
Lawn care, utilities, pest control, and repairs don't stop. Vacant homes deteriorate faster.
Utilities
You need to maintain water, electric (for HVAC), and gas to prevent damage to the home.
For a typical inherited home, these costs can easily reach $500-1,500+ per month. If you're not planning to live there or rent it immediately, these expenses eat into any potential profit from a future sale.
Your Options for an Inherited Property
Option 1: Move In
If the home suits your needs and you want to live there, this can be a great way to honor your loved one's memory. You'll need to update insurance and may want to refinance any existing mortgage.
Option 2: Rent It Out
Becoming a landlord means ongoing responsibilities: finding tenants, maintenance calls at 2 AM, and navigating Texas landlord-tenant law. Some people thrive in this role; others find it stressful.
Option 3: Sell Traditionally
List with a realtor, make repairs, stage the home, host showings. This process takes 3-6+ months and involves 6-10% in fees and closing costs.
Option 4: Sell for Cash ✓
Get a fair offer, close in 7-14 days, skip repairs and showings. Often the best choice when you live far away, need to split proceeds among heirs, or simply want closure.
What About Taxes on Inherited Property?
Good news for heirs: inherited property receives a "stepped-up basis" for tax purposes. This means:
- Your tax basis is the property's value at the time of death, not what your loved one originally paid
- If you sell soon after inheriting, you'll likely owe little or no capital gains tax
- Texas has no state inheritance tax or estate tax
Note: This is general information, not tax advice. Consult with a CPA or tax attorney for your specific situation.
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