By Realtors Carole Smith & Cristina Formosa
Not every home sale begins with excitement. Some begin with a phone call no one is ready for.
Over the years, legacy transactions have grown to represent between 25 and 30 percent of our business, roughly triple the national average, of 7 to 9 percent. We didn't set out to specialize here. Families found us, referred us, trusted us. And in doing this work consistently, we've learned things about real estate, and about people, that a conventional transaction rarely teaches.
A legacy transaction takes two forms. There is the surviving spouse, living alone in a home that was once full, weighing whether to stay or let go. And there is the adult child, often calling from out of state, who has inherited a property and is trying to do right by a parent they've just lost. Both situations carry weight that goes beyond square footage and listing price.
The first thing we've learned to do is slow down. Not because the market rewards patience - though sometimes it does. But because families who make major decisions from a place of grief and pressure rarely feel good about them later. A widow who sells before she is truly ready may regret it. Siblings who list before reaching an agreement can fracture relationships that outlast any transaction. Moving carefully is not timidity. It's smart.
At the same time, waiting too long carries real costs. According to a Charles Schwab study, nearly 70% of heirs intend to sell an inherited home, and many don't realize that timing affects how much they keep. A surviving spouse who sells within two years of losing a partner may exclude up to $500,000 in capital gains under current federal tax law. After that window closes, the exclusion drops to $250,000. On a Coral Gables property that has appreciated over decades, that difference is significant.
There is also the stepped-up cost basis to understand. When a home passes to an heir, its taxable value resets to fair market value at the time of death. For a property purchased long ago, this can substantially reduce, or eliminate, capital gains exposure, if an appraisal is done. Families who don't know this sometimes make choices that cost them more than they expect.
If needed, we collaborate with estate attorneys and CPAs to serve as a resource. The financial and legal pieces of a legacy transaction require that all parties understand the intricacies of this type of undertaking.
What we offer isn't just market expertise. It's the willingness to meet families where they are, give them honest information without pressure, and stay with them through a process that is often longer and more personal than either side anticipates.
Some of our most meaningful work has happened in empty kitchens, on difficult phone calls, in moments before anyone was ready to talk about price.
This information is not legal or financial advice. Consult your attorney and/or CPA when necessary.