On average, home sellers in Florida spent 9 to 11 months selling an inherited property in 2022. Median days on the market will increase significantly in the coming months due to the slowing real estate market in Florida.
So, if you are ready to sell your inherited house in Florida, start now!
- Probate Process: A probate is a legal validation of a deceased person’s will that helps to distribute the property amongst its heirs and beneficiaries.
- Sale of an Inherited House in Florida: After the probate is completed, the process of selling an inherited house is the same as selling a pre-owned house in Florida.
- Selling a House with Multiple Inheritors in Florida: If the inherited property has multiple heirs, the majority can decide to sell the house by filing a lawsuit of partition action in the Florida probate court.
- Inheritance Tax: The state of Florida does not impose an inheritance tax upon the transfer of ownership.
- Bottom Line: In 2023, more sellers in Florida are opting to sell their homes by owner. By using Florida For Sale By Owner websites, you get full exposure via the MLS and save thousands in commission – negating the decline in home prices.
Can I Sell an Inherited House in Florida?
Yes, you can sell your inherited house in Florida after the probate process is complete. Selling an inherited property is similar to selling a pre-owned home.
Here are two crucial factors that can impact your sale:
1. Probate Process
An inherited property in Florida must undergo a probate process that can take 6 to 9 months. The probate period varies statewide. It can extend in case of multiple inheritors or the absence of a will.
You need to submit the owner’s death certificate and property ownership proof during the probate process. You also have to pay for several expenses such as outstanding mortgages, taxes on the property, and other bills.
Properties Exempted from Undergoing Probate Process in Florida
You will be exempted from a probate process under the following conditions:
- Florida Lady Bird Deed: Florida Lady Bird deeds or enhanced life estate deeds allow the owner to transfer the ownership of the house to the beneficiary. However, the owner retains full control over the house and can revoke the details of the deeds at any time.
- Receive a House in Trust in Florida: A property trust is a legal entity that allows the passing of the ownership of a property after the demise of the grantor (the owner) to the beneficiary. The owner can use the assets as if he still owns them during his lifetime.
2. Mortgage on Inherited Assets in Florida
The mortgage on the inherited property in Florida can be paid off in one of three ways:
- 👾 ALIENATION CLAUSE: This clause triggers when the ownership of an inherited property is transferred to a new heir. The inheritor now has to pay off the full mortgage. However, certain laws allow you to repay the mortgage on a monthly basis. A real estate attorney can help you with this.
Taxes on an Inherited Property in Florida
You have to pay taxes while selling the property in Florida and not when inheriting it.
1. Inheritance Tax
Inheritance tax is a state tax applicable when you inherit a property from a deceased person. However, the state of Florida does not impose an inheritance tax while inheriting real property.
👉 NOTE: Inheritance tax does not apply to the spouse and children of the deceased owner.
2. Taxes When Selling an Inherited Property in Florida
- Transfer Tax: Transfer tax is a one-time fee (generally costs less than 1%) that sellers pay at the time of transferring the ownership between the two parties. Florida charges a transfer tax of o.7% of the total sale price of the home.
- Property Tax: Property tax in Florida is 0.98% of the total sale price of the property.
- Capital Gains Tax: Capital gains tax is imposed only when you sell the house, and not while inheriting it. The IRS (Internal Revenue Service) authority levies the tax on a stepped-up basis. The state of Florida does not impose any capital gains tax on individuals.
- 💡 Capital Gains Tax Exclusion: You can be excluded from paying capital gains tax in the U.S. if the following criteria are met:
1. You have lived in the property for more than two years in the last five years.
2. You have not used the exclusion in the past two years for another property.
Selling the Inherited Property in Florida
After completing the probate process, you can sell your inherited property. Selling an inherited home is similar to the sale of a pre-owned house in Florida.
You must follow a certain number of steps to sell a house in Florida. They typically include-
- Hiring a Mediator: Hire a real estate agent or realtor to assist you in the home selling process.
- Pricing Your Home for Sale: Analyse the current market trends and price your home accordingly.
- Hiring a Photographer: Professionally photographed homes sell 32% faster. Make sure to hire a top Florida real estate photographer to create a portfolio of your house.
- Listing Your Home on the MLS: Homes listed on the MLS sell faster and for 17% more. You can list for sale by owner on MLS in Florida via a Flat Fee MLS service like Houzeo at a flat fee.
- Managing Showings: Host open houses and schedule showings to attract potential buyers for your inherited property.
- Negotiating Offers: You must compare the offers from prospective buyers on your listing. You can also negotiate if the proposed offer is too low.
- Closing the Sale: The closing process mainly consists of you completing the final paperwork, and paying the closing costs and home-selling taxes.
» Closing Costs in Florida: Check out how much closing costs are in Florida and who pays them.
Selling an Inherited House in Florida with Other People
Sometimes a single property in Florida might have multiple inheritors. They may include close family members like siblings, cousins, etc. In such cases, selling a house with multiple inheritors can become difficult.
Appoint a neutral party as the head person for sale. They will ensure a transparent home sale process. The head person will also guarantee a fair distribution of proceeds amongst the inheritors.
What if All Owners Don’t Agree to Sell in Florida?
In such cases, the majority of inheritors can go ahead with the sale.
You can start by filing a lawsuit known as a partition action in the Florida probate court. This will allow the majority of inheritors to sell the house and distribute the proceeds amongst themselves immediately after probation.
The majority of owners can also sell the house post-probation. They must file the partition action in the local court instead of the probate court.
Ways to Sell Your Inherited House in Florida
You have 4 options to sell your inherited home in Florida:
- List Your Florida Home on a For Sale By Owner Website: Florida FSBO websites allow you to leverage technology in your home sale and save thousands in commissions. You retain control of your transaction and can engage directly with the buyer and buyer’s agent. FSBO sites will also get you listed fast, typically within 24 to 48 hours.
- List with a Florida Discount Real Estate Broker: The best discount real estate brokers in Florida offer all the services that traditional Realtors do but at discounted rates. They usually charge 1.5% to 3% commissions to list your home. You can also opt for a flat rate Realtor to list your home.
- List with a Full-Service Florida Realtor: Hiring a full-service agent may not be the best alternative. They charge a hefty real estate commission of 5% to 6%. This will decrease your net proceeds significantly. However, if you need hand-holding at each step, opt for local Florida realtors in your neighborhood.
- Sell Your Home to an iBuyer in Florida: An iBuyer can instantly make a cash offer and help you sell your house fast in Florida. They make cash offers as high as 100% of the fair market value. However, iBuyers have strict purchase criteria.
- Sell Your Florida House to a Flipper: You can sell your inherited property to professional Florida house flippers. They produce offers as high as 70% of the fair market value.
✍️ Pro Tip: Sell Your Distressed Inherited Property to Cash Home Buyers in Florida
Cash home-buying companies typically offer 50% to 70% of the property’s fair market value. They majorly deal in distressed and rental properties.
» Cash Home Buyers in Florida: Check out our rankings.
Selling an inherited house in Florida is a complex and time-consuming process. Your inherited home might remain in probate for up to 9 months. You also have to pay several taxes when selling your inherited home.
All of this adds to the complexity and expenses of selling a house. We recommend you sell with a Flat Fee MLS company to ensure a smooth sale.
Eager to Know More About Houzeo?
We’ve got you covered. Check out the following video to understand why Houzeo is one of the best for sale by owner websites in the U.S.
Houzeo offers 4 Flat Fee MLS packages.
- Bronze Package – $329+: This package offers Houzeo listing only for 6 months with maximum photos.
- Silver Package – $399+: This includes everything that home sellers typically look for.
- Gold Package – $379+: It is Houzeo’s signature MLS package and includes all the technology Houzeo is known for Houzeo Showings, Houzeo Offers, and DigiTransact.
- Platinum – $349+: It includes the assistance of a licensed broker to help you with negotiations, disclosures, and closing.
👉 Our Take: We recommend the GOLD plan. You’ll have access to Houzeo tech, making managing showings and offer negotiations easy! Confirm all prices on the state’s pricing page before you list.
» Houzeo Reviews: Houzeo is 100% online. You can finish listing formalities in less than 60 mins.
Houzeo is America’s #1 Flat Fee MLS service because of 4 reasons:
- Max Exposure: Houzeo MLS packages give you access to the MLS, Zillow, Trulia, Realtor.com, Redfin, and 100s of other websites.
- 5-star Customer Service: Houzeo has a fully staffed customer service desk available 6 days a week. Chats and emails are open 7 days a week. This is rare in today’s world.
- 100% Online: Houzeo is high-tech. For you, this means easy listing, fast changes, online showings, and online offers. Houzeo mobile app is also very powerful.
- No Hidden Fees: In most states, you’ll be paying just a small flat fee to list on MLS by owner. And remember, all fees are disclosed upfront, so there are no Houzeo hidden fees. You get to bypass the listing agent commission.
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Frequently Asked Questions
Can you sell a house while in probate in Florida?
Yes, you can sell the inherited property in Florida while the probate is in progress. The executor of the estate can lead the deal. The court verifies the transaction and the proceeds can be distributed among the heirs after a 90-day period.
Does Florida has an inheritance tax?
The state of Florida does not impose an inheritance tax if you inherit a property.
Is there a time limit on selling inherited property in Florida?
No, there is no time limit to sell an inherited property in Florida. Once the probate process is completed and the legal inheritor is declared, you can sell your inherited property anytime.
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