By Realtors Carole Smith & Cristina Formosa
Losing a parent or a loved one is never easy. Along with the emotional weight of saying goodbye, many families in Miami find themselves facing practical decisions—one of the biggest being what to do with the family home. Whether it’s the house you grew up in or one they downsized to later in life, selling a relative’s home comes with both logistical and emotional layers to work through.
In the last two years, we’ve found that 10-15% of the homes we list are inherited homes. Here are a few basic considerations to keep in mind:
First Things First: Who Owns the Home Now?
If your relative had a will or living trust, that’s a good place to start. In Florida, most homes pass through something called probate unless they were placed in a trust or jointly owned with someone who survives them. Probate is the legal process that oversees and dictates how a person's assets and property are distributed when they die, whether with or without a valid will or trust.
If there’s no will, Florida law determines who inherits the property. In either case, it’s smart to speak with a local estate attorney early on to help you understand next steps—and avoid any costly mistakes.
Don’t Forget the Tax Picture
Good news: Florida doesn’t charge an inheritance tax or estate tax. Even better, the federal government “steps up” the property’s value to what it was worth at the time of your relative’s passing. So if your relative bought the house in the ‘80s for $150,000 and it’s now worth $1.5 million, you won’t be taxed on that full gain if you sell. You’d only pay capital gains tax on the difference between the stepped-up value and your sale price. (Always consult your CPA to run the numbers—every situation is a little different.)
Closing costs in Florida typically run 6–9% of the sale price, so be sure to budget for commissions, title fees, and legal costs.
Five Key Steps to Take
- Meet with a real estate attorney to guide you through probate or trust issues.
- Order a professional appraisal to establish market value.
- Work with a local agent who understands the property's neighborhood and can market the home effectively. Ideally, align with a Realtor who has experience in this type of nuanced transaction.
- Clean and prepare the home—this might include an estate sale, donations, or minor repairs.
- Talk to a tax advisor to understand your obligations and avoid surprises.
It’s Okay to Take Your Time
Selling a loved one’s home is never just a business transaction—it’s personal. Often times there are multiple siblings or family members involved, making decision-making more complex, particularly when parties are not local. Whether you’re ready to list quickly or need time to sort through memories, belongings and differing expectations, give yourselves grace during the process. There’s no one-size-fits-all timeline.