Selling a home your family has owned for decades means more than a transaction. It often comes with years of belongings, family decisions and real tax questions, whether the home is your own or a parent’s. Here’s the order that keeps it manageable.
Step 1: Confirm who can sign
Before you list or accept any offer, be clear on who has the legal authority to sell.
- Your own home: you and any co-owner on the deed.
- Held in a trust: the successor trustee can usually sell without going to court. They will need the trust documents and a death certificate.
- Passing through probate: in Illinois, the executor or administrator needs to be appointed by the court first. The court issues “letters of office.” Under independent administration, they can usually sell without further court approval.
- Joint tenancy or a transfer-on-death instrument: the home may pass directly to the surviving owner or the named beneficiary.
An estate attorney can confirm which situation applies. In Illinois you’ll also have a real estate attorney for the sale itself.
Step 2: Understand the tax picture
These are general rules, not tax advice. Your situation can differ, so review the details with your CPA or tax advisor.
- Your own long-held home: you may be able to exclude up to $250,000 of gain from income tax ($500,000 for married couples filing jointly). Generally, you need to have owned the home and lived in it for two of the last five years. Records of major improvements can raise your cost basis, so gather receipts before you sell.
- An inherited home: the tax basis is generally “stepped up” to the home’s value on the date of death. If the home sells soon after, there is often little taxable gain. A date-of-death appraisal helps document that value.
- Illinois estate tax: it applies only to estates above $4 million. Illinois has no separate inheritance tax.
Free download: Home Updates Tracker
A simple sheet to log each update and repair, with its date, cost, contractor and warranty, plus a wish list for future projects. Click the link and choose Make a copy to save your own version (a free Google account is needed). Share it with your CPA when you sell.
Step 3: Decide what to do with the house itself
Homes owned for decades are often dated, and buyers price that in. You rarely get back the cost of a big remodel. Focus on what affects a buyer’s decision:
- Safety items and major systems: roof, furnace, water heater, plumbing and electrical.
- A thorough cleaning, and clearing out belongings.
- Light cosmetic work, like paint and fixtures, only where it clearly pays off.
Read which updates add value before selling. Selling as-is is also a reasonable choice, especially when you’re managing a property from a distance.
A note on disclosures: Illinois sellers normally complete a residential disclosure report. Fiduciaries selling in the course of administering an estate or trust may be exempt. Your attorney can confirm what applies to you.
Step 4: Handle the belongings
- Let family choose keepsakes first, and photograph items so everyone can see what’s there.
- Set aside important papers: deeds, tax records, receipts, warranties and insurance policies. Log improvements in the Home Updates Tracker as you find the receipts.
- For the rest, use an estate sale company, donation pickup or a junk removal service. Often it takes a mix of all three.
Step 5: Protect a vacant home
- Tell the insurance company the home is vacant. Coverage can change after a home sits empty, and you may need a vacancy policy.
- Keep utilities on. Before a McHenry County winter, have the plumbing checked or winterized.
- Keep paying property taxes and any HOA dues, and have someone check the home regularly.
Step 6: Choose how to sell
You have three common paths:
- List it after light preparation: usually the highest price.
- List it as-is: less work, and buyers know what they’re getting.
- Take a cash offer: speed and certainty, often helpful when family lives out of the area.
See how to compare a cash offer with listing, or find your selling path to see the options side by side.
When family members disagree
Disagreements usually come down to value and timing. A few things help:
- Share one set of evidence everyone can see: recent sales of similar homes, current competition and what buyers are choosing.
- Agree on a decision rule up front, such as “we’ll accept any offer at or above this net.”
- Choose one person as the main contact for the sale.
Frequently asked questions
Can I sell an inherited house before probate is finished?
Often, yes. In Illinois, once the court appoints the executor or administrator, they can usually sell under independent administration before the estate is closed. Homes held in a trust typically don’t go through probate.
Do I have to fix up an inherited home before selling?
No. Many inherited homes sell as-is. Light preparation can raise the price, but compare its cost with the likely return before you spend.
Will I owe tax when I sell an inherited home?
Often little or none if it sells soon after the date of death, because the basis generally steps up to that date’s value. Confirm with your tax advisor.
How long does it take to sell a long-held home?
Clearing out and preparing often takes the most time, sometimes weeks or months. The sale itself usually closes 30 to 45 days after you accept an offer. A cash sale can be faster.
Not sure where to start? Get the home’s market price, or find your selling path. If you’re also planning your own next move, read about the best places to downsize in the Chicago suburbs. More articles are in the Seller Learning Center.
