Selling an Inherited Property in Seattle

Inheriting a house in Seattle sounds like good news until you’re the one holding the keys. I’ve helped heirs across King and Pierce County sort through what to do with a property that came with a lot more attached to it than they expected: taxes, siblings with different opinions, and a house that usually needs work. Here’s what I’ve learned about selling an inherited property in Washington, and where the real decisions actually get made.

The Stepped-Up Basis Most Heirs Don’t Know About

One of the biggest advantages of inheriting property instead of buying it is something the IRS calls a “stepped-up basis.” Instead of using what your parent or relative originally paid for the house decades ago, your cost basis resets to the property’s fair market value on the date they passed. If the house is worth close to that value when you sell, there’s often little to no capital gains tax owed at all. This is one of the most overlooked pieces of the process, and it’s worth confirming with a CPA before assuming you’ll owe a large tax bill on the sale.

Washington Doesn’t Tax You for Inheriting, But the Estate Might Owe

Washington has no inheritance tax, meaning you personally don’t owe tax just for receiving the property. But Washington does have its own state estate tax, separate from the federal estate tax, which applies to the estate itself on estates above roughly $2.193 million. That’s paid out of the estate before assets are distributed, not something the heirs pay directly out of pocket later. And when you do sell, Washington’s Real Estate Excise Tax (REET) applies to the sale price, a graduated rate combining the state portion with King County’s local share. That’s a cost of selling, not a cost of inheriting.

When Siblings Disagree About What to Do

This is the situation I run into more than almost any other. Two or three siblings inherit a house together, and one wants to keep it, one wants to rent it out, and one just wants their share in cash. Washington law allows any co-owner to file a partition action forcing a sale if the group can’t agree, but that route means months in court and legal fees that come straight out of everyone’s share. In most cases I’ve seen, agreeing to a direct sale and splitting the proceeds cleanly through escrow is faster and keeps more money in everyone’s pocket than a forced legal partition.

A Situation I See More Than People Expect

This is a composite, not one specific client, but it reflects a pattern I see often around South King County. An out-of-state heir inherits a parent’s house in Seattle, and they’re living in California or Arizona, hours away from a property that needs a new roof, has forty years of belongings inside, and sits on a lot that’s been appreciating for decades. They don’t want to fly back and forth managing contractors and cleanout crews. A direct sale, as-is, with no repairs and no showings, lets them close from out of state and be done with it without setting foot in the house again if they don’t want to.

Do You Have to Go Through Probate First?

In most cases, yes, unless the property was already held in a living trust or passed through a transfer-on-death deed. Washington’s probate process names a “personal representative” (Washington doesn’t use the word “executor”), and most Washington estates are granted what’s called “nonintervention powers,” which lets the personal representative sell real estate without going back to the court for approval on every step. That’s faster than probate in a lot of other states, but the estate still needs to be opened and the personal representative still needs to be formally appointed before a sale can close.

What I Walk Heirs Through

1. Confirm whether probate has been opened and who has legal authority to sell.
2. Look at the house and give you a cash offer as-is, no repairs, no cleanout required.
3. Coordinate with all heirs so everyone signs off on the same terms and closing date.
4. Work with escrow to split proceeds according to the will, trust, or intestate succession law.
5. Close on a timeline that works even if heirs are spread across different states.

Where Heirs Lose Money on Inherited Property

An inherited house often sits vacant for months while family members sort out probate, and an empty house still needs insurance, utilities, and upkeep the whole time. Listing it on the open market usually means putting money into repairs and cleanout first, since most buyers and their lenders expect a move-in ready home. Add in agent commissions and the back-and-forth of coordinating multiple heirs’ schedules for showings, and a lot of the equity that was supposed to help the family can get eaten up before closing. Selling directly, as-is, tends to short-circuit most of that.

Why Families Call Me for Inherited Property

I buy houses as-is, so there’s no cleanout, no repairs, and no staging required before closing. I work directly with personal representatives, attorneys, and out-of-state heirs, and I can close in as little as 7 to 14 days or on whatever timeline works for the estate. I’ve been buying houses across Seattle and the greater Puget Sound area for 10 years, and inherited properties are one of the situations I handle the most.

Inherited Property Questions I Get Asked Most

Do I have to pay taxes on an inherited house in Washington? There’s no inheritance tax in Washington, and the stepped-up basis rule often means little to no capital gains tax if you sell close to the value at the time of death. There is Real Estate Excise Tax owed on the sale itself. Always confirm your specific numbers with a CPA.

Can I sell the house before probate is finished? Often yes, once a personal representative is appointed with authority to sell, especially if the estate has nonintervention powers, which is common in Washington.

What if my siblings and I don’t agree on selling? Washington law allows a forced sale through a partition action if co-owners can’t agree, but it’s slow and expensive. Most families I work with prefer to agree on a direct sale and split proceeds through escrow instead.

Do I need to clean out or repair the house before selling? Not if you sell directly to me. I buy as-is, belongings and all, so you don’t need to coordinate a cleanout crew or contractors before closing.

I live out of state. Can I still sell the house? Yes. I regularly close with heirs who never set foot back in Washington, handling paperwork remotely through escrow and your attorney.

Serving Homeowners Across the Puget Sound Area

Wherever you’re located, we can help. We buy houses throughout Seattle, Tacoma, Bellevue, Renton, Federal Way, Everett, Olympia, Vancouver, Bellingham, Kent, Shoreline, Lacey, Lynnwood, Issaquah, Marysville, Edmonds, Auburn, Bothell, Burien, Kirkland, Redmond, and Puyallup.