Should I Sell My Inherited House to a Cash Buyer?
Should you sell an inherited house to a cash buyer? Usually not—most heirs leave $100,000 or more on the table. Cash buyers target probate and trust sales because successor trustees are overwhelmed. But owner-occupants pay 76-84% of value versus an investor's 60-70%. On a typical Los Angeles inherited property, that gap is $60,000-$150,000.
If you've recently inherited a property in Los Angeles, you're probably exhausted. Dealing with an estate you didn't expect while living your regular life. Managing siblings with different opinions. Facing a house that needs work—maybe decades of deferred maintenance.
And now the letters and calls won't stop. "We buy houses cash." "Close in 7 days." "No repairs needed."
It sounds like exactly what you need. But here's what those cash buyers won't tell you: their offer is designed to profit from your exhaustion. The convenience they're selling comes at a steep price—typically $100,000 or more below what your inherited property is actually worth.
I've worked with hundreds of families navigating probate and trust sales throughout Los Angeles. If you're feeling overwhelmed and want to understand your real options—not a sales pitch—call (213) 444-2225. We'll walk through the numbers together.
Why Cash Buyers Target Inherited Properties
Cash buyers—especially wholesalers—specifically seek out probate sales and trust transfers. They monitor court records, send mailers to addresses where someone recently passed, and make calls to successor trustees.
Why? Because they know you're vulnerable:
- Emotional exhaustion makes "fast and easy" sound appealing
- Distance (many heirs don't live locally) creates urgency to be done
- Family dynamics push toward quick resolution
- Unfamiliar process makes their "expertise" seem valuable
- Property condition makes heirs assume "we have to sell to an investor"
They're counting on you not knowing what the property is actually worth—or what your alternatives are.
The Real Numbers: What Inherited Properties Sell For
Here's what I've seen across hundreds of probate and trust sales in Los Angeles:
| Sale Method | % of ARV | On $900K Property |
|---|---|---|
| Cash buyer (investor) | 60-70% | $540K-$630K |
| As-is on market | 76-84% | $684K-$756K |
| Light prep + market | 85-92% | $765K-$828K |
| Full renovation | 95-105% | $855K-$945K |
The gap between Option 1 and Option 2 is $54,000-$126,000—just for exposing the property to owner-occupants instead of only investors.
Ted's Story: From $750K Cash Offers to $960K Sale
Ted and his family in San Gabriel came to us after months of frustration with cash buyers on an inherited property that needed work.
They had been considering offers in the $750,000 to $800,000 range. The house was dated—original kitchen, deferred maintenance, needed updating throughout. They assumed "we have to sell to an investor."
Here's what actually happened:
- We suggested as-is market exposure with light prep
- The family cleared the property and did very light landscaping—minimal cost and effort
- Listed for $850,000
- Multiple offers from owner-occupants who saw potential
- Final sale: $960,000
That's over $150,000 more than the cash offers—for a few weeks of patience and basic clearing.
The extra time was minimal. The extra money was life-changing.
The "Condition Embarrassment" Trap
Here's a pattern I see constantly with inherited properties.
Heirs feel embarrassed about the home's condition. Mom and Dad lived there for 40 years. The kitchen hasn't been updated since the 90s. There's decades of accumulated belongings. Things need work.
That embarrassment leads heirs to assume they must sell to an investor. "Who would want to buy this mess?"
The answer: owner-occupants buy dated homes all the time. They see potential where you see problems. They're willing to update over time. And they pay 76-84% of ARV instead of 65-70%.
Don't let embarrassment cost you $100,000.
Your 4 Options for Selling an Inherited Property
Option 1: Cash Off-Market (60-70% of Value)
Best for: Properties with severe issues (fire damage, major structural problems) or situations with extreme timeline pressure (court deadlines, family disputes that require immediate resolution).
Timeline: 7-14 days after you have authority to sell.
Trade-off: You're leaving 15-25% on the table for speed and simplicity.
Option 2: As-Is on Market (76-84% of Value)
Best for: Most inherited properties. Requires basic clearing but no repairs.
Timeline: 30-45 days to close.
Trade-off: Slightly more time, but $60,000-$150,000+ more in your pocket.
Option 3: Light Prep + Market (85-92% of Value)
Best for: Properties where basic cleaning, landscaping, and minor fixes would make a significant presentation difference.
Timeline: 45-60 days total.
Trade-off: Some upfront investment (often $5,000-$15,000), but significantly higher returns.
Option 4: Full Renovation (95-105% of Value)
Best for: Heirs with capital, time, and willingness to manage a project—or properties where renovation is clearly the highest-return path.
Timeline: 3-6 months.
Trade-off: Maximum return but requires significant involvement.
Most families choose Option 2 or 3—capturing the owner-occupant premium without major work.
How to Evaluate a Cash Offer on an Inherited Property
If you've already received cash offers, here's how to evaluate them:
Step 1: Know Your After-Repair Value
What would your property sell for if it were fully updated? This is your benchmark. A local agent can provide this analysis free.
Step 2: Calculate Their Percentage
Divide their offer by your ARV. If it's below 70%, you're leaving significant money on the table.
Step 3: Verify Legitimacy
Require proof of funds within 24 hours, 3% earnest money, and 7-14 day closing. If they can't meet these standards, you're dealing with a wholesaler.
Step 4: Compare to Market Exposure
Ask yourself: "Would I rather have $630,000 in 14 days, or $756,000 in 45 days?" For most families, the extra month is worth $126,000.
Special Considerations for Probate Sales
Probate properties have unique requirements in California:
- Court confirmation may be required for sales under independent administration
- Overbidding is possible in court-confirmed sales
- Timeline depends on letters of administration or letters testamentary
- Multiple heirs require agreement on sale terms
These complications don't mean you must sell to a cash buyer—they just mean you need an agent experienced with probate transactions.
Inherited Property? Let's Look at Your Options Together.
We specialize in helping families navigate inherited property sales—from simple trust transfers to complex multi-heir probate situations.
- Free property evaluation showing all 4 options
- Clear comparison of cash offers vs. market exposure
- Experience with out-of-state heirs and remote coordination
- Concierge-level support—we handle everything so you don't have to
No pressure. Just clarity on what your inherited property is actually worth.
📞 (213) 444-2225 · ✉️ [email protected]
Frequently Asked Questions
Should I sell an inherited house to a cash buyer?
Usually not. Cash buyers specifically target heirs because they're overwhelmed. Owner-occupants pay 76-84% of value versus an investor's 60-70%—a difference of $100,000+ on typical Los Angeles properties.
How long does it take to sell an inherited house?
Cash sale: 7-14 days after you have legal authority. Market sale: 30-60 days. The extra time typically yields $60,000-$150,000 more.
Do I have to fix up an inherited house before selling?
No. As-is sales to owner-occupants are common and yield 76-84% of ARV. Basic clearing and cleaning is usually enough to access the higher-paying buyer pool.
What are my options for selling an inherited property?
Four options: cash off-market (60-70% of ARV), as-is on market (76-84%), light prep (85-92%), or full renovation (95-105%). Most families choose Option 2 or 3.
Are cash buyers who contact heirs legitimate?
Some are legitimate investors. Many are wholesalers who will tie up your property and try to flip the contract. Verify with 24-hour proof of funds, 3% earnest money, and 7-14 day closing timeline.
This article provides general information about inherited property sales in Los Angeles County. Every situation is unique. Consult with qualified real estate, legal, or financial professionals for advice specific to your circumstances.
© Justin Borges
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