Inherited a House in Sacramento? Here's What to Do First

We partnered with a real estate company for this post. The opinions in the post are honest. All reviews and opinions expressed in this post are based on our personal views. We are excited because we know you will love it.

Nobody plans to become the sudden owner of a house. One day you are living your life, and the next you are holding a deed to a property you did not ask for — one that may be across town, in need of repairs, or still carrying a mortgage.

If you have recently inherited a house in Sacramento, take a breath. You have more options than it probably feels like right now. This guide walks you through everything you need to do — in the right order — so you can make a smart, informed decision.

Step 1: Determine Whether Probate Is Required

Before you can do anything with an inherited property, you need to confirm whether it must pass through probate — the court-supervised process of validating a will and transferring assets.

In California, probate is generally required if the estate's assets exceed $184,500(as of current thresholds). However, several types of transfers skip probate entirely:

• Property held in a living trust

• Property with a joint tenancy designation

• Homes with a recorded transfer-on-death deed

If you are unsure, a probate attorney or estate attorney in Sacramento can clarify your situation quickly — many offer free initial consultations.

Step 2: Get Clear on Who Owns What

If multiple heirs are involved, all decisions about the property will need to be made collectively. This includes whether to sell, rent, move in, or hold the home. Family dynamics can complicate even straightforward estates, so it helps to have a written agreement among heirs about the plan before moving forward.

Step 3: Understand the Tax Implications

Here is the good news that many heirs do not know: inherited property in the U.S. typically receives a stepped-up cost basis, which means your taxable gain is calculated from the home's fair market value at the time of inheritance — not what the original owner paid for it.

For example, if your parent bought the home in 1985 for $80,000 and it is now worth $450,000, your capital gains basis is $450,000. If you sell it for $465,000, you would only owe capital gains tax on $15,000 — not $385,000.

That said, tax law is nuanced. Always confirm your situation with a CPA or tax attorney before making assumptions.

Step 4: Assess the Property's Condition

Walk through the home and take stock of what you are dealing with. Make note of major systems — roof, HVAC, plumbing, electrical — and any deferred maintenance. This assessment will shape your decision about what to do next.

According to Bobby Buys Homes, many inherited homes in Sacramento have been lived in for decades and need updating or repairs. Understanding the scope of work — and the cost — is essential before deciding whether to invest in renovations or sell the property as-is.

Step 5: Decide What to Do with the Property

Option A: List with a Real Estate Agent

If the home is in good shape and you are not in a hurry, listing on the open market may yield the highest sale price. Expect the process to take 60 to 90 days from listing to close, plus additional time for any repairs or negotiations.

Option B: Sell As-Is to a Cash Buyer

If the property needs significant work, or if multiple heirs want to settle the estate quickly, selling to a cash buyer is often the most practical option. Cash buyers purchase inherited homes in any condition, handle all closing paperwork, and typically close within 1 to 2 weeks.

Option C: Rent It Out

If the property is in good condition and you want ongoing income, renting is an option. Be aware that becoming a landlord in Sacramento comes with responsibilities — including compliance with California's tenant protection laws.

Watch Out for These Common Pitfalls

• Letting the property sit: Vacant homes deteriorate and attract liability. Every month of delay has a cost.

• Underestimating carrying costs: Property taxes, insurance, utilities, and maintenance add up quickly.

• Skipping professional advice: Probate and estate tax rules are complicated. One misstep can be expensive.

• Making decisions under pressure: If other heirs are pushing for a quick sale, make sure you understand what you are agreeing to.