Selling an Inherited Home For Sale By Owner in Florida

Inheriting a home in Florida raises important questions about what to do next. If you have decided to sell the property and want to handle the sale yourself, a For Sale By Owner (FSBO) approach can save you thousands in real estate commissions. But selling inherited property involves additional legal steps that do not apply to a typical home sale, including probate, title issues, and tax considerations.

At Barnes Walker, we are both a probate law firm and a title company. This unique combination means we can guide you through the entire process, from establishing your legal authority to sell, through the closing and deed recording. Here is what you need to know.

Step 1: Establish Your Legal Authority to Sell

Before you can sell inherited property, you must have the legal right to convey the title. How you obtained the property determines what steps are required:

If the Property Went Through Probate

If the deceased person owned the property solely in their name, it must go through Florida's probate process before it can be sold. The court will appoint a personal representative who has the authority to manage and sell estate assets.

  • Formal administration: For estates valued over $75,000. The personal representative can sell property with court approval or under the authority granted in the will.
  • Summary administration: For smaller estates. The court issues an order determining the heirs' interests, which can be used to transfer title.

If the Property Was in a Trust

Properties held in a revocable living trust avoid probate. The successor trustee has the authority to sell the property and convey title to the buyer. A certificate of trust or trustee's deed is used at closing.

If the Property Was Jointly Owned

Property held as joint tenants with right of survivorship or tenants by the entirety automatically passes to the surviving owner upon death. The surviving owner can sell the property after recording a death certificate and affidavit of survivorship.

Step 2: Clear the Title

Inherited properties often have title issues that must be resolved before closing:

  • Unpaid liens or mortgages: Any debts secured by the property must be satisfied at or before closing
  • Tax liens: Unpaid property taxes, including those accrued during probate, must be resolved
  • Judgment liens: Court judgments against the deceased may attach to the property
  • Multiple heirs: If more than one person inherited the property, all owners must agree to the sale and sign the deed. Learn about Florida's Uniform Partition of Heirs Property Act for situations where heirs disagree.
  • Missing heirs: If any beneficiary cannot be located, the sale may require court intervention

Our title division conducts a comprehensive search to identify and resolve all title issues before you list the property.

Step 3: Understand the Tax Implications

Florida does not have a state income tax or estate tax, which is good news for heirs selling inherited property. However, you should be aware of:

  • Stepped-up basis: When you inherit property, your tax basis is "stepped up" to the property's fair market value at the date of the deceased's death. This means you only owe federal capital gains tax on appreciation that occurs after you inherited it.
  • Example: If the deceased purchased the home for $150,000 and it was worth $350,000 at the date of death, your basis is $350,000. If you sell it FSBO for $360,000, your taxable gain is only $10,000, not $210,000.
  • Federal estate tax: This only applies to estates exceeding the federal exemption (currently over $13 million for individuals). Most heirs will not owe estate tax.
  • Documentary stamp tax: Florida's transfer tax applies to the sale price at closing, just like any other real estate transaction.

We recommend consulting with a tax professional for advice specific to your situation.

Step 4: List and Sell the Property FSBO

Once your legal authority is established and the title is clear, the FSBO sale process follows the same steps as any other home sale in Florida:

  1. Price the home based on current market comparables
  2. Prepare and market the listing
  3. Receive and negotiate offers (your attorney can draft or review the purchase agreement)
  4. Complete inspections and any required repairs
  5. Finalize the title commitment and title insurance
  6. Close the transaction

Read our full guide on selling FSBO in Florida for detailed steps.

Common Challenges When Selling Inherited Property FSBO

  • Siblings or co-heirs disagreeing on the sale: If multiple people inherited the property, inheritance disputes can delay or prevent the sale
  • Property in poor condition: Inherited homes may have deferred maintenance, code violations, or environmental issues
  • Out-of-state heirs: If you live outside Florida, our remote closing services allow you to complete the sale without traveling to the state
  • Homestead exemption complications: If the deceased claimed Florida homestead exemption, constitutional protections may limit how the property can be transferred or sold
  • Ongoing probate: In some cases, the personal representative can sell the property during probate, but this requires specific legal procedures

Why Barnes Walker Is Uniquely Qualified for Inherited Property FSBO Sales

Barnes Walker combines probate law expertise with in-house title and closing services under one roof. This means we can:

  • Handle probate and establish your authority to sell
  • Resolve title issues related to the inheritance
  • Draft or review the FSBO purchase agreement
  • Conduct the title search and issue title insurance
  • Manage escrow and coordinate the closing
  • Prepare and record the deed

No need to coordinate between separate probate attorneys, title companies, and closing agents. One firm handles everything.

Sell Your Inherited Property with Confidence

Inherited a home in Florida and want to sell it yourself? Contact the attorneys at Barnes Walker. We will verify your legal authority, clear the title, and manage every step of your FSBO closing.

Contact Barnes Walker About Selling Inherited Property

Sources

See also: The Probate Process from Start to Finish | For Sale By Owner Services