Inherited Property
Selling an inherited Denver home
A practical guide for executors and beneficiaries — the probate timeline, tax implications, prep considerations, and how to handle the sale with care and clarity.
Inherited real estate is rarely simple. There's legal process, tax implications, family dynamics, and often a home full of belongings that need attention before anyone can even think about listing. Here's a practical overview of how these sales work in Colorado.
What Probate Actually Means
In Colorado, probate is the legal process of administering a deceased person's estate. If real estate is part of the estate, it usually needs to go through probate before it can be sold — though there are exceptions, including revocable living trusts, joint tenancy with right of survivorship, and beneficiary deeds.
Most Colorado probates take 6–9 months from filing to close. Real estate can sometimes be marketed during probate with court approval — which is what I typically coordinate with the estate attorney to avoid losing months of market time.
Important: I'm not an attorney. For probate, tax, and estate questions, you'll need a probate attorney and a CPA. I'm happy to refer you to professionals who specialize in exactly this.
The Step-Up Basis — A Meaningful Tax Benefit
When you inherit real estate, the tax basis "steps up" to the fair market value at the date of death. That means if your parents bought their Denver home for $80,000 in 1980 and it's worth $750,000 today, your basis is $750,000 — not $80,000. If you sell shortly after inheriting, capital gains tax is typically minimal.
This is worth understanding before you make any decisions about timing or whether to sell at all. Talk to a CPA who handles estate tax matters before closing.
The Process
1. Confirm probate status
Was there a will? A trust? A beneficiary deed? Talk to a probate attorney to understand what's required before the property can be transferred or sold.
2. Secure the home
Change locks, forward mail, set up basic utility maintenance, and transfer insurance to a vacant home policy if needed. Vacant homes carry different insurance requirements than occupied ones.
3. Inventory and cleanout
Estate sale specialists, donation pickups, and junk haulers — I have a vetted network for all of it. We don't rush this. Family memorabilia gets sorted before strangers walk through.
4. Establish the value
I'll run a comparative market analysis. Your CPA may also need a date-of-death appraisal for the step-up basis calculation — that's a separate professional engagement.
5. Prep, list, and sell
Standard listing process from there — paint, professional photography, staging where it adds value, and broad marketing across the MLS and syndicated portals.
6. Coordinate with your attorney and CPA
I work directly with your professional team to ensure all documents, title transfers, and tax reporting are handled cleanly through closing.
Just Inherited a Property?
A thoughtful first conversation.
No rush, no pressure. Let's talk through where you are and what the process looks like from here.