How to Sell an Inherited Property in Jacksonville

Inheriting a property can be tough emotionally as well as on your bank account. Does the property need expensive upgrades and repairs? How much will you have to pay in taxes? Is there a will or will you need to deal with the probate process? But inherited properties are also a great opportunity for real estate investors and buyers looking for a discount on a property they can make their own. But what does it take for a homeowner to sell an inheritance? Are there special steps that need to be taken to deal with this type of sale? This article will explain the process of selling an inherited property to (hopefully) make a profit.

How To Sell An Inherited Property in Jacksonville

So, you’ve inherited a property in Jacksonville and you’re unsure what steps to take next. First of all, take a deep breath—you’re not alone. Many people find themselves in this situation without any prior experience. In Florida, most inherited homes must go through a legal process called probate before they can be sold. Probate allows the courts to validate the will (if there is one), appoint an executor or administrator, and officially transfer ownership of the property to the rightful heir(s).

The probate process in Florida can be quick or lengthy depending on whether a valid will exists and whether any disputes arise among heirs. Once the court gives the green light, you can move forward with selling the property. Below are the key steps you’ll want to follow to make the process as smooth and profitable as possible.

Determine the Executor of the Estate

If the deceased left behind a will, it typically names an executor—the person responsible for managing and distributing the estate. This person will be in charge of selling the inherited property, paying off debts, and carrying out the wishes laid out in the will.

If there is no will or if the will is being contested, the court will appoint an administrator, who performs the same duties as an executor. In both cases, no real estate can be legally sold until probate court approves the will or appoints someone to manage the estate. Understanding who is in charge from the beginning helps avoid delays and confusion later in the process.

Work with Probate Attorneys and Local Real Estate Professionals

Selling an inherited property in Jacksonville is not the same as a typical home sale. The probate process involves legal requirements, paperwork, and timelines that must be followed carefully. That’s why working with a Florida-based probate attorney is essential. They’ll help you navigate any legal obstacles and make sure you comply with Florida probate laws.

Once the court approves the sale, your next move should be hiring a local real estate agent who has experience with probate and inherited properties. An agent who understands the Jacksonville market and the complexities of inherited homes can help you decide what’s worth fixing and what’s not—maximizing your selling price while minimizing stress and costs.

Settle Any Outstanding Debts or Liens

Inheriting property also means inheriting any outstanding debt attached to it. That could include:

• A mortgage balance
• Back taxes
• Utility bills
• Credit card debts
• Liens against the title

In Florida, creditors can claim part of the estate to recover debts, and the property may need to be sold to pay them off. Before listing the house, you or the executor must work with the estate attorney to verify what debts must be resolved. This ensures the title is clear for a sale and prevents legal issues down the road.

Clean, Repair, or Restore the Property

Most inherited homes in Jacksonville are not move-in ready. Whether it’s been sitting empty for years or simply wasn’t updated or maintained, chances are the house will need some TLC before putting it on the market.

You’ll want to:

• Remove personal belongings
• Deep clean the home
• Make necessary repairs
• Possibly stage or upgrade outdated features

Even modest repairs and cleaning can make a huge difference in how fast your property sells and how much it sells for. A good real estate agent can help you prioritize improvements based on your budget and local market expectations.

Do All Heirs Have to Agree to Sell Inherited Property?

If you’ve inherited a property in Jacksonville along with other family members, one of the first questions that often comes up is: “Do all heirs have to agree to sell the house?”

The short answer: It depends on how the estate was structured and whether probate is complete.

If ownership has already been legally established—either through a valid will or a decision from the probate court—then the person or party named as the executor or legal owner has the right to make decisions about the sale of the property. In that case, not all heirs must agree to move forward.

However, if the estate is still in probate, has no will, or involves multiple heirs without a clear executor, then all heirs typically must agree before selling the property. This is especially true in situations where the court has appointed an administrator and where proceeds may be used to settle outstanding debts.

Even in cases where the court orders a public auction to cover estate debts, disagreements among heirs can temporarily halt the process until a resolution is reached.

How to Handle Disagreements Between Heirs of Inherited Property?

When heirs disagree on whether or not to sell the inherited property, things can get complicated quickly. The first and best step is to confirm whether the estate has a legally recognized executor or administrator. This person serves as the official decision-maker on behalf of the estate and is responsible for following the instructions laid out in the will—or, in the absence of one, the rules set by Florida probate law.

If the disagreement persists or if no executor exists, it may be time to bring in a professional mediator. Mediation allows for a neutral third party to help resolve disputes outside of court. It’s often faster, more affordable, and less emotionally draining than prolonged legal battles in probate court.

Best Practices If There’s a Conflict with the Executor?

Sometimes, the issue isn’t about whether to sell the property—but rather who gets to make the decision. If a family member is named as the executor or trustee, it can lead to tension, especially if other heirs feel excluded or distrustful of the decision-making process.

In this case, one option is for the named executor to voluntarily step down and let an independent fiduciary—such as a Jacksonville-based estate attorney—take over. This impartial third party can manage the sale and distribution of assets fairly, helping to avoid family rifts and ensuring the process stays on track.

Letting a neutral expert handle the situation often reduces emotional friction and allows families to focus on healing instead of fighting over property decisions.

How is inherited property taxed when sold?

In Jacksonville, Florida — and more broadly in the U.S. — when you sell an inherited property, the main tax considerations are:

✅ 1. No Inheritance Tax in Florida

• Florida does not have a state inheritance or estate tax.
• The IRS may impose a federal estate tax, but only on estates valued over $13.61 million (for 2024) — so most people are exempt.

✅ 2. Step-Up in Basis

• When you inherit property, your cost basis is “stepped up” to the fair market value (FMV) at the time of the original owner’s death.

Example:

• Original purchase price: $100,000
• FMV at death: $250,000
• You sell it later for $270,000
• Your taxable capital gain = $20,000, not $170,000

✅ 3. Capital Gains Tax

• If you sell the inherited property, you’re typically subject to capital gains tax on the difference between:
  • the sale price and
  • the stepped-up basis.
• Holding period is automatically considered long-term, even if you sell it immediately after inheritance.

Rates (as of 2024):

• 0%, 15%, or 20% depending on your income.

✅ 4. Reporting the Sale

You must:

• Report the sale on IRS Form 8949 and Schedule D with your tax return.
• If there was a capital gain, pay tax based on your income bracket.

Summary for Jacksonville, FL inherited property taxed:

If you’re unsure about the FMV at the time of death or how to calculate capital gains, it’s best to consult a CPA or tax advisor — especially if the property had significant improvements or was rented.

State Tax Laws

Each state has different laws regarding inheritances. In the case of the sale of an inherited property, states may take an estate tax, an inheritance tax, as well as a capital gains tax on your inheritance. Currently, twelve states have an estate tax, 5 have an inheritance tax, and one has both an estate and inheritance tax.

Capital Gains Tax on Inherited Property

What is the capital gains tax and which states require it? The capital gains tax is paid on the appreciation of any assets that an heir inherits through an estate but it is only levied once the asset is sold for a profit, not when you inherit. This tax is then paid on the difference between the sale price and the purchase price of the property. Most states require this tax paid on an inherited property, but there may be exemptions for individuals selling a property for less than a certain amount. An example is Washington State, where the capital gains tax is not levied on homes and/or properties sold for less than $250,000. There may also be other legal ways to get around or reduce the capital gains tax in your state, including reinvesting the money in another property. Consult with a tax lawyer knowledgeable of the laws in the area you will be selling before proceeding with the sale of your property.

Estate Taxes

An estate tax is a tax paid directly out of the estate to the state before anyone is able to inherit it. Worried that you might get a huge hit taken from the estate? Don’t worry! The estate tax has a minimum threshold which in 2023 was $12.92 million for individuals. This means that the government is not able to charge you an estate tax unless your total taxable estate is worth $12,920,001. The remainder is passed on estate tax-free. Despite having such a high threshold, each year more states repeal their estate tax laws, losing out on millions of dollars of revenue.

Inheritance Taxes

Only six states have an inheritance tax, meaning that it is likely that you are in the lucky majority that won’t have to deal with this. But if you live in one of those six states – Maryland, Nebraska, Kentucky, New Jersey, Pennsylvania, and Iowa – you as a beneficiary/Heir to an estate will be required to pay taxes on your inherited assets and properties. But don’t worry – even if you live in a state that has an inheritance tax, you won’t have to pay a dime if the deceased lived in one of the 44 states that does not have this tax.

Documents required to sell an inherited property

To show legal ownership and place a property for sale, you will need to have a copy of the documents issued by the court that grant you the legal authority to act as the executor or administrator of the estate. These documents will establish your ability to manage the inherited property. Once a buyer is found and you are ready to close, you’ll need the deed, title insurance, or other relevant legal records to establish the legal ownership of the inherited property. 

Do your research regarding what additional documents may be needed to sell an inherited property! Some jurisdictions may require additional property-related documents, including previous surveys, inspections, or any other relevant paperwork that pertains to the property’s condition or history.

Is there an easier way to sell?

Yes, there is! IBUYPROPERTYCASH is a direct house buying company that has built our reputation on buying inherited houses for cash with less stress and less fees. Contact us today and get a competitive cash offer for an inherited house, condo, or property. We buy homes in any condition, and we can also help with the convoluted process of selling a house in probate! Let us make your home selling experience as straightforward and stress-free as possible so you can move on with your life.

Even if the house suffered major damage in the last storm or was neglected for years and needs a large amount of upgrades to make it “market ready”, once you accept our fair cash offer our team of experts will handle all of those expensive repairs so you don’t have to! We make selling an inherited house easy.