A Step-by-Step Guide to Selling an Inherited Home in Costa Mesa & Newport Beach

Introduction

Inheriting a property in Costa Mesa or Newport Beach can be both an emotional and financial challenge. If you decide to sell the home, you’ll need to navigate California’s probate process, tax laws, and market conditions. This guide will walk you through everything you need to do to prepare your inherited home for sale.

1. Understand California’s Probate & Legal Requirements

Before you can sell the home, you must ensure legal ownership has been transferred. Here’s what you need to know:

✅ Is Probate Required?

If the property was held in a trust, you can bypass probate and proceed with the sale.
If there is no trust, probate may be required unless the estate qualifies for California’s Small Estate Affidavit process (under $184,500 in value).
A court-appointed executor will need to handle the sale if probate is necessary.

✅ Clear Any Outstanding Liens or Debts

Check for unpaid property taxes, mortgages, or home equity loans. These must be settled before closing.

✅ Confirm Title Ownership

Ensure the home is legally transferred into your name before listing it for sale. A title company can assist with this process.

2. Address Capital Gains & Property Tax Considerations

Selling an inherited home in California comes with unique tax implications.

💰 Step-Up in Basis Benefit

You won’t pay capital gains tax on the home’s original purchase price. Instead, you pay tax on the difference between the sale price and the home’s fair market value at the time of inheritance.
Example: If your parents bought the home for $200,000, but its market value was $1 million when inherited, your tax is only on the profit exceeding $1 million.

🏡 Property Tax Reassessment (Prop 19)

If you keep the home, property taxes may increase under California Prop 19, unless you use the home as your primary residence.
If you sell, property tax reassessment is not an issue.

🚨 Avoid Capital Gains by Selling Quickly

If you sell soon after inheriting, the home’s sale price may match its inherited value—meaning little to no capital gains tax.

3. Prepare the Home for Sale in Costa Mesa & Newport Beach

To attract buyers and maximize profits, follow these steps:

🛠️ Make Necessary Repairs

Structural Issues (roof, foundation, plumbing)
Curb Appeal Improvements (landscaping, fresh paint, updated fixtures)
Cosmetic Updates (flooring, cabinets, bathrooms)

🧹 Declutter & Clean

Inherited homes often come with decades of belongings. Hire a professional estate sale company if needed.
Deep clean carpets, windows, and walls to make the home move-in ready.

🏡 Stage the Home for Maximum Appeal

Newport Beach and Costa Mesa buyers prefer modern, coastal-style homes.
Remove dated furniture and add neutral décor to make rooms feel open and airy.

📸 Professional Photography & Marketing

Work with a local real estate expert like Marterra Real Estate to showcase the home’s best features.

4. Work with a Local Real Estate Expert

Selling an inherited home involves legal, financial, and emotional challenges. Marterra Real Estate specializes in Costa Mesa and Newport Beach home sales, helping sellers navigate probate, tax issues, and marketing strategies for a smooth, profitable sale.

📞 Contact us today to get a free home valuation and expert guidance.

Work With Us

At Marterra Real Estate, we know that real estate gives you the power to define your life on your terms, and we’re honored to be a part of whatever’s next. Here, you have access to more than just knowledgeable, skilled agents. You have a team of trusted advisors at your side, working with a calm, relaxed demeanor as they guide you on your journey toward building wealth through real estate