Selling an Inherited Home in Virginia: What Heirs Should Know

Selling a parent’s or relative’s home is often a mix of practical work and memories. I try to make the practical side simple so families can take the time they need with the rest. I’m not an attorney or tax advisor, so please confirm the legal and tax details with professionals.

Who can sell the home?

In Virginia, the answer depends on how the home was owned and what the will says. If the home was held jointly with survivorship rights, it may pass directly to the surviving owner. If it passes through the estate, the executor named in the will usually qualifies with the circuit court clerk. If the will gives the executor a power of sale, the executor can often sign. If not, the heirs may all need to sign. An estate attorney can confirm the path quickly, and the title company will tell you exactly what documents they need.

The stepped-up basis: a worked example

Your tax basis in an inherited home is generally its value on the date of death, not what your parents paid. Say your parents bought their Alexandria home in 1990 for $150,000, and it was worth $650,000 when it passed to you. You sell a few months later for $660,000 and pay $40,000 in selling costs.

	Without step-up	With step-up
Sale price	$660,000	$660,000
Selling costs	– $40,000	– $40,000
Basis	– $150,000	– $650,000
Taxable gain	$470,000	$0 (a $30,000 loss)

That difference is why a date-of-death appraisal is so valuable. Ask the appraiser for a retrospective value as of that date, and keep it with your tax records.

Sell, rent or keep?

Path	Pros	Cons
Sell soon	Simple to divide, minimal tax with the step-up, ends carrying costs	Emotional timing; may need repairs or a clean-out
Rent it out	Ongoing income and possible appreciation	Landlord duties; co-heirs must agree on management
One heir keeps it	Stays in the family	The keeper may need to buy out the others

Caring for a vacant home

• Tell the insurance company the home is vacant. Many standard policies limit coverage after a period of vacancy.
• Keep utilities on and the heat set to prevent frozen pipes.
• Stop mail, check the home weekly and keep the lawn cut.
• Remove valuables and important papers early.
• Ask about a clean-out or estate sale company from my trusted vendor list.

When several heirs share the decision

Inherited homes often belong to several siblings or relatives, and each may have different goals. One wants to sell quickly, another hopes to keep the home in the family, and a third lives out of state and just wants clear updates. A short family meeting early on can prevent months of delay. Agree on who will be the main point of contact, how decisions will be made and how costs like taxes, insurance and utilities will be shared until the sale.

I send every heir the same updates and pricing data, so no one feels left out. When everyone sees the same comparable sales and the same offers, agreement usually comes much faster.

Common mistakes

• Listing before confirming who has authority to sign.
• Skipping the date-of-death appraisal and losing proof of the stepped-up basis.
• Pouring money into a full renovation when a clean-out and light repairs would net more.
• Letting insurance lapse on a vacant home.

For more on pricing and preparation, see How to Price Your Home and pre-listing inspections.

Frequently asked questions

Do we have to wait for probate to finish to sell?

Not always. The executor can often list and sell once qualified, depending on the will. Your attorney will advise on timing.

Does Virginia have an inheritance tax?

No. Virginia has no inheritance tax and repealed its estate tax for deaths after mid-2007. Federal estate tax applies only to very large estates.

What if there’s still a mortgage?

Keep making payments if possible while the estate is settled. The loan is paid off from the sale proceeds at closing.