Inheriting a House in Maryland? Here Is What You Need to Know Before Selling
Inheriting a property in Maryland can feel overwhelming — especially when you are dealing with grief, family dynamics, and a house that might be hundreds of miles away. If you are wondering whether you can sell an inherited house, how probate works in Maryland, and what your options are, this guide walks you through everything step by step.
Does an Inherited House Have to Go Through Probate in Maryland?
In most cases, yes. Maryland requires probate for estates valued over $50,000 (or $100,000 if the sole heir is the surviving spouse). The process is handled through the Orphans’ Court in the county where the deceased lived.
There are two types of probate in Maryland:
- Regular Estate: For estates over $50,000. Requires a personal representative (executor) appointed by the court. Takes 6-12 months on average.
- Small Estate: For estates under $50,000 (or $100,000 for surviving spouses). Simplified process that can be completed in weeks.
Key fact: you can sell the house during probate in Maryland. You do not have to wait for probate to close. The personal representative has the legal authority to sell real property once appointed by the court — though you may need court approval depending on the will’s terms.
What If There Is No Will?
If your loved one died without a will (intestate), Maryland’s intestacy laws determine who inherits. The court will appoint an administrator to manage the estate. The administrator can still sell the property, but court approval is typically required.
Common intestate scenarios in Maryland:
- Surviving spouse + children: spouse gets first $40,000 plus half of the remaining estate
- Children only (no spouse): divided equally among children
- Spouse only (no children): spouse inherits everything
Can Multiple Heirs Sell an Inherited House?
This is one of the most common situations we see in Montgomery County, Prince George’s County, and across Maryland. Three siblings inherit Mom’s house. One wants to sell, one wants to keep it, one lives in another state and just wants their share.
Here is the reality: all heirs must agree to sell, or the personal representative must have the authority granted in the will. If there is a disagreement, any heir can file a partition action in court to force a sale — but that is expensive, slow, and painful for everyone.
A cash sale to an investor like Old Fashioned Home Buyers often resolves these disputes faster because:
- No repairs needed — no arguing about who pays for the new roof
- Fast closing — everyone gets their share in days, not months
- Clean split — we work directly with the title company to distribute funds according to the estate
What About the Mortgage?
If there is an existing mortgage on the inherited property, it does not disappear. The estate is responsible for making payments. If payments stop, the lender can foreclose — even during probate.
The good news: under federal law (the Garn-St. Germain Act), a lender cannot call the loan due simply because the property was inherited. You have time to decide what to do. But the clock is ticking on monthly payments.
If the property is underwater (worth less than the mortgage), you may need to negotiate a short sale or deed-in-lieu with the lender.
Tax Implications of Selling an Inherited House in Maryland
Good news here: Maryland does not have a state inheritance tax for direct relatives (spouse, children, parents, grandchildren). There is no federal inheritance tax either.
For capital gains, you get a stepped-up basis — meaning your cost basis is the fair market value on the date of death, not what your parent originally paid. If Mom bought the house in 1985 for $80,000 and it was worth $350,000 when she passed, your basis is $350,000. If you sell for $355,000, you only owe capital gains on the $5,000 difference.
This stepped-up basis is one of the biggest advantages of inherited property. Sell relatively soon after inheriting, and your tax bill is often minimal or zero.
Selling an Inherited House As-Is in Maryland
Most inherited properties have deferred maintenance. The roof needs work. The kitchen is from 1987. Maybe there is a tenant situation or the house has been sitting vacant.
You have two main options:
- List with a real estate agent: Expect 60-90 days on market, 5-6% in commissions, potential repair requests from buyers, and the risk of deals falling through at inspection.
- Sell to a cash buyer: Get an offer in 24 hours, close in 7-14 days, sell completely as-is, pay zero commissions or closing costs.
For heirs who live out of state, are splitting the property with siblings, or just want to move on, a cash sale is often the fastest path to resolution.
How Old Fashioned Home Buyers Handles Inherited Properties
We buy inherited houses throughout Maryland — Montgomery County, Prince George’s County, Anne Arundel County, Frederick County, Howard County, and Charles County. Here is what makes our process different:
- We can close during probate — we work with the personal representative and title company to handle the legal requirements
- We buy as-is — no cleanouts, no repairs, no staging
- We coordinate with multiple heirs — our title company distributes funds according to the estate plan
- We show our math — you will see the comparable sales, repair estimates, and exactly how we calculated your offer
- Remote closing available — if you live out of state, we can handle everything via mail or mobile notary
Get a Cash Offer for Your Inherited Property →
Or call (240) 200-0897 — Mourad and Anny personally handle every inherited property sale.