Navigating Your Inherited Home Sale: Investor or Agent?
Inheriting a home is rarely just a financial transaction; it’s often an emotional journey that comes with a heavy logistical load. You are likely dealing with grief, family obligations, and the sudden responsibility of a property that might be filled with decades of memories—and stuff. As we move through February 2026, many heirs and executors find themselves standing at a crossroads, needing to decide how to turn that property into liquid assets for the estate.
The decision usually boils down to two distinct paths: accepting a direct cash offer from a real estate investor or listing the home on the MLS (Multiple Listing Service) with a local real estate agent. It is a choice that pits convenience and speed against the potential for a higher sale price.
There is no single “right” answer. For some families, squeezing every dollar out of the sale is the priority, even if it takes months. For others, the mental freedom of a quick close is worth far more than the extra equity they might gain by dragging out the process. Understanding the mechanics of both options is the only way to make a choice you won’t regret later.
At a Glance: Investor Offer vs. MLS Listing
To make a clear decision, you need to understand how the process differs day-to-day. The experience of selling to a professional buyer is fundamentally different from hosting open houses for the general public.
The Investor Route When you work with an investor, you are trading equity for speed and simplicity. The timeline is incredibly compressed; many cash buyers can close in as little as 7 to 14 days, though they are usually flexible if you need more time to clear out personal belongings. The biggest draw here is the “as-is” nature of the sale. You don’t paint, you don’t repair the leaky faucet, and you often don’t even have to empty the house completely. There are no showings to strangers, just one or two visits from the investor and their contractor. The certainty of closing is high because these deals are typically cash and not dependent on bank financing.
The MLS Route Listing on the open market is the traditional path. This process can take anywhere from 45 to 90 days or more, depending on your local market conditions. To get top dollar, you will likely need to handle repairs, clean the property thoroughly, and stage it for photos. You will also have to accommodate frequent showings, which can be stressful if family members are still living in the home. However, because you are exposing the home to thousands of potential retail buyers—including those looking for PGA Village homes for sale or properties in specific school districts—you have a much better chance of securing a higher final sale price. The trade-off is lower certainty; retail buyers can have financing fall through or get cold feet after an inspection.
The Numbers: Gross Price vs. Net Proceeds
This is where the most common misconceptions happen. Many heirs look at the “Gross Sale Price” (what the house sells for on paper) and assume that is the amount the estate will distribute. In reality, you need to focus on “Net Proceeds”—the amount of money that actually hits the bank account after all expenses are paid.
When you list on the MLS, there are friction costs that eat into your profit. Let’s look at the typical deductions for a traditional sale:
- Agent Commissions: usually around 5–6% of the sale price.
- Closing Costs: sellers typically pay 1–3% for title insurance, doc stamps, and recording fees.
- Repair Costs: even a “clean” house often needs 1–2% in touch-ups or credits to the buyer after inspection.
- Holding Costs: you must pay utilities, insurance, lawn care, and property taxes every month the house sits on the market.
Contrast this with an investor offer. A reputable investor often covers 100% of the closing costs and charges no commissions.
Let’s look at a hypothetical example: Imagine the market value of the inherited house is $300,000.
- On the MLS: You sell for $300,000. You pay roughly $18,000 in commissions, $6,000 in closing costs, and spend $5,000 on repairs and holding costs while it was listed.
- Total Deductions: ~$29,000.
- Net to Estate: $271,000.
- Investor Offer: They offer you $260,000 cash. They pay all closing costs.
- Total Deductions: $0.
- Net to Estate: $260,000.
In this scenario, the “gap” between the two options isn’t $40,000 (the difference in sale price); it is actually only $11,000. You have to decide if the extra work and time of a traditional listing is worth that $11,000 difference. Using a closing costs calculator can help you run these specific numbers for your situation.
When Does an Investor Offer Make Sense?
There are specific scenarios where selling to an investor is not just easier, but actually the smarter financial move.
Deferred Maintenance Issues If the house has a 20-year-old roof, outdated electrical panels, or foundation issues, a retail buyer will struggle to get a mortgage. Banks typically require homes to be in livable condition to approve a loan. Investors buy with cash, so they don’t care about the condition. If the estate cannot afford $30,000 to fix the house before selling, an investor is often the only viable path.
Out-of-State Heirs Managing a renovation or even a simple clean-out from across the country is a nightmare. Trying to coordinate contractors, check on lawn care, and sign paperwork remotely adds layers of stress. Selling as-is to a local buyer eliminates the need for you to be physically present.
Urgency and Probate Complexity Sometimes the estate has immediate debts to settle, or property taxes are piling up. An investor can close immediately. Furthermore, some properties have “cloudy titles” or complex probate hurdles. Experienced investors are often willing to buy properties with these complications, whereas a traditional buyer would run the other way.
When Should You List on the MLS?
While investors offer speed, the traditional market is the undisputed king of maximizing equity. Here is when you should definitely list with an agent.
The House is “Turnkey” If the home is updated, clean, and modern—ready for a family to move in immediately—you are leaving money on the table by selling to an investor. Retail buyers pay a premium for move-in-ready homes.
Maximum Equity is the Goal If the heirs are in agreement that time is not a factor and the primary goal is to extract every possible dollar, the MLS is the way to go. In a seller’s market where inventory is low, listing the home can spark a bidding war, driving the price well above what any investor could offer.
Fiduciary Duty If you are the executor and there are multiple beneficiaries who don’t necessarily trust one another, an open market sale is your best defense. It provides a transparent, public record of the sale. If you sell off-market to an investor, a disgruntled heir might later claim you sold it too cheaply. Listing it publicly proves you achieved true market value.
Managing Multiple Heirs and Family Dynamics
The “soft” side of selling an inherited house—the people part—is often harder than the math. When multiple siblings or heirs are involved, the method of sale can either soothe or inflame family tensions.
Renovating a home for an MLS listing requires unanimous agreement on everything: the budget, the choice of contractors, the paint colors, and the listing price. This is a frequent source of conflict. One heir might want to spend $20,000 on a new kitchen to boost the price, while another wants to sell as-is and get paid now.
Choosing an investor sale can act as a pressure release valve. It cuts the timeline short, reducing the window of time for family disagreements to fester over property management duties. However, if one heir absolutely loves the property and wants to keep it, they can buy out the others. This is often easier to do with a professional appraisal rather than relying on an investor’s offer or an agent’s opinion.
Tax Implications: Stepped-Up Basis Explained
One of the biggest worries heirs have is the tax bill. “If we sell the house for $400,000, do we have to pay capital gains on all that money?” Generally speaking, the answer is no, thanks to something called the “Stepped-Up Basis.”
When you inherit a property, the IRS “steps up” the value of the home to its fair market value on the date of the previous owner’s death. If your parents bought the house in 1990 for $100,000, but it was worth $400,000 when they passed away, your tax basis is $400,000.
If you sell the house shortly after for $400,000—whether to an investor or on the MLS—your profit for tax purposes is essentially zero ($400,000 sale price minus $400,000 basis). You generally only pay capital gains on the increase in value between the date of death and the date of the sale. This is why selling relatively quickly is often tax-efficient. Always consult a tax professional, as state inheritance taxes can vary.
Steps to Decide: A Simple Framework
If you are paralyzed by the decision, follow this simple four-step process to get clarity.
Step 1: Get a Professional Inspection Before you decide to list, find out what is actually wrong with the house. Is the AC unit about to die? Is there mold in the attic? Knowing the scope of repairs helps you realize if you even can list it on the MLS.
Step 2: Request a Comparative Market Analysis (CMA) Ask a local real estate agent for a CMA. This will tell you what the home could sell for if it were fixed up and marketed properly.
Step 3: Get a Cash Offer Contact a reputable local investor for a no-obligation cash offer. This gives you a baseline “floor” price.
Step 4: Compare the Net Proceeds Take the Agent’s predicted price, subtract 8-10% for commissions and closing costs, and subtract the estimated repair costs from Step 1. Compare that final number to the Investor’s cash offer. If the difference is small, the convenience of the investor might win. If the difference is huge, the work of the MLS listing is likely worth it.
Frequently Asked Questions (FAQ)
Is it better to sell an inherited house as-is or fix it up?
This largely depends on the Return on Investment (ROI) and your available cash. If spending $10,000 on paint and flooring adds $30,000 to the sale price, it is worth doing. However, if the house needs major structural repairs, you rarely get your money back dollar-for-dollar, making an as-is sale the safer financial choice.
How fast can I sell an inherited house to an investor?
Investors can move incredibly fast because they aren’t waiting on bank mortgage approvals. It is common to close in as little as 7 to 14 days. If you need more time to sort through personal belongings, most investors can push the closing date out to fit your schedule.
Do I have to pay taxes on an inherited house if I sell it to an investor?
Usually, the tax impact is minimal due to the “stepped-up basis” rule, which resets the home’s value to its market value at the time of the owner’s death. You typically only pay capital gains tax on any profit made above that value, regardless of whether you sell to an investor or on the open market.
Can I sell an inherited house before probate is finished?
In many cases, yes, but you must have the legal authority to do so. If you are the court-appointed executor or personal representative, you can often sell the probate process, though the court may need to approve the final sale price to ensure it’s fair to the estate.
What happens if one heir wants to sell to an investor and another wants to list it?
The executor usually has the final legal authority to make the decision, but acting against the wishes of other heirs can lead to lawsuits. The best compromise is often to get a formal appraisal to set a baseline value; if the heir who wants to list it believes they can get significantly more, they might agree to buy out the other heirs at the appraisal price.
