Selling an Inherited House in Georgia: Step-by-Step Guide

Inheriting a house in Georgia can be both a blessing and a burden. While it's often an unexpected asset, it also comes with responsibilities: property taxes, maintenance, insurance, and the emotional weight of deciding what to do with a loved one's home.

If you're considering selling an inherited property in Georgia, this guide will walk you through everything you need to know — from probate to taxes to your selling options.

Step 1: Understand the Probate Process

Probate is the legal process of validating a will and distributing a deceased person's assets. In Georgia, most inherited real estate must go through probate before it can be legally sold.

Does the Property Need Probate?

Not always. The property may avoid probate if:

• It was held in a living trust
• It had a transfer-on-death deed
• It was owned jointly with right of survivorship
• The total estate value is under $10,000 (small estate affidavit)

If probate IS required, you'll need to:

1. File the will with the Probate Court in the county where the deceased lived
2. Get appointed as executor/administrator
3. Inventory all assets
4. Pay debts and taxes
5. Distribute remaining assets to heirs

Step 2: Determine Ownership

Before selling, you need to establish clear ownership. This depends on:

• If there's a will: Property goes to named beneficiaries
• If there's no will (intestate): Georgia law determines heirs (typically spouse and children first)
• Multiple heirs: All owners must agree to sell (or one can buy out others)

Step 3: Understand Tax Implications

Good news: Georgia has no state inheritance tax. But there are other tax considerations:

Capital Gains Tax

When you inherit property, you receive a "stepped-up basis" — meaning your cost basis is the property's fair market value at the time of death, not what the deceased originally paid.

Example: Your parent bought a house for $100,000. When they passed, it was worth $300,000. If you sell for $310,000, you only pay capital gains tax on $10,000 — not $210,000.

Property Taxes

You're responsible for property taxes from the date of inheritance. In Georgia, taxes are due by December 20th each year.

Step 4: Assess the Property's Condition

Inherited homes often need work. Common issues include:

• Deferred maintenance from elderly owners
• Outdated systems (HVAC, electrical, plumbing)
• Personal belongings that need clearing
• Cosmetic updates needed
• Sometimes major repairs (roof, foundation)

You have three options:

1. Make repairs and sell traditionally — Maximum price but requires time and money
2. Sell as-is to a cash buyer — Fast and convenient, no repairs needed
3. Sell as-is on the market — Middle ground, but limits buyer pool

Step 5: Decide What to Do

You have several options for an inherited property:

Option 1: Keep It

• Live in it yourself
• Rent it out for income
• Use as a vacation home

Consider: ongoing costs, distance, your financial situation

Option 2: Sell It

• Traditional sale with agent (45-90 days)
• Cash sale to investor (7-14 days)
• For Sale By Owner

Option 3: Buy Out Other Heirs

If you want to keep the property but have co-heirs, you may need to buy their shares.

Selling Options Compared

Traditional Sale (Real Estate Agent)

Pros: Potentially highest price, professional marketing

Cons: 5-6% commission, repairs often needed, 3-6 months timeline, showings and open houses

Cash Sale (Investor/Cash Buyer)

Pros: Fast closing (7-14 days), no repairs needed, no commissions, no showings, handles problem properties

Cons: Below market value (typically 70-85%)

When Cash Buyers Make Sense for Inherited Homes

• Property needs significant repairs
• You live far away and can't manage showings
• Multiple heirs want quick resolution
• House is full of belongings you can't clear
• You need cash quickly
• You don't want the hassle of a traditional sale

Common Challenges with Inherited Properties

Multiple Heirs

When siblings or family members inherit together, disagreements can arise. All owners typically must agree to sell. Consider family mediation if conflicts arise.

Outstanding Mortgage

If there's still a mortgage, you have options: continue payments, refinance in your name, or sell the property to pay it off.

Property Full of Belongings

Clearing out a lifetime of possessions is emotionally and physically draining. Cash buyers often purchase homes "contents included" — you take what you want and leave the rest.

Out-of-State Heirs

Managing a property from a distance is challenging. Cash buyers can handle everything remotely, often without you needing to visit.

Georgia-Specific Considerations

• Homestead Exemption: Ends upon owner's death — property taxes may increase
• Transfer Tax: Georgia charges a real estate transfer tax of $1 per $1,000 (usually paid by seller)
• Probate Courts: Each county has its own Probate Court with varying procedures

Next Steps

If you've inherited a house in Georgia and are considering selling:

1. Consult with a probate attorney to understand your legal obligations
2. Get an appraisal to establish value and stepped-up basis
3. Talk to all heirs about everyone's wishes
4. Explore your selling options
5. Make a decision that works for your situation

Disclaimer: This article is for informational purposes only. Please consult with qualified legal and tax professionals for advice specific to your situation.