Selling the Property

As-Is vs. Selective Preparation

The first decision is whether the property will be sold strictly as-is or with selective preparation. There's no single right answer — it depends on the property's condition, the estate's resources, and the local market. Properties sold strictly as-is typically sell for 15% to 25% below market value, but they sell faster and carry less executor risk. Strategic repairs focused on curb appeal and safety — costing $5,000 to $15,000 — can often recover 2x to 3x their cost in improved offers.

Separate Safety from Cosmetics

Safety and financeability issues — structural problems, code violations, health hazards, roof condition, HVAC functionality — are different from cosmetic concerns like paint color or outdated fixtures. Lenders and inspectors will flag the first category; the second is a pricing question. FHA and VA loans, which a large share of buyers use, require the home to meet specific minimum property standards.

Avoid Over-Improvement

This is the most common trap in estate sales. The estate spends money on improvements that don't recover their cost, depleting estate resources without improving the outcome. A strategic, conservative approach to repairs — focused on safety, first impressions, and financeability — typically produces the best net result.

True Market Position, Not Memory

An inherited home should be priced based on its current market position — not the family's memory of it, what was originally paid, or what a Zillow estimate says. A thorough comparative market analysis, combined with an honest assessment of condition, is the starting point. In Texas Hill Country markets like Boerne and Fair Oaks Ranch, median home prices currently range from $400,000 to $600,000+, making accurate pricing critical to maximizing estate proceeds.

Account for Estate-Specific Friction

Probate sales carry built-in friction: the need for court approval (in some cases), the potential for delayed decisions, the as-is condition of many estate properties, and buyer perception of estate sales. These factors can affect pricing strategy.

Match Strategy to Priority

Is the estate's priority maximum price, speed, certainty, or simplicity? The pricing strategy should match the estate's real priority — not a theoretical ideal.

Texas requires standard seller disclosures for residential property, and probate sales are no exception. The challenge is that the executor or administrator may not know the property's full history. However, under Texas Property Code § 5.008(b), executors and administrators are exempt from completing the standard Seller's Disclosure Notice — as the statute below makes clear.

"The seller's disclosure notice does not apply to a transfer: (1) pursuant to a court order; (2) by a trustee in bankruptcy; (3) as executor, administrator, or guardian of the estate of a decedent; or (4) to a mortgagee or beneficiary under a deed of trust."

• Be precise about what the estate knows and does not know. Gather material facts from every reasonable source — prior inspections, repair records, insurance claims, utility history, neighbor input — and disclose them. When you don't know the answer to a disclosure question, say so honestly. "Executor has no knowledge" is an appropriate response when it's true.
• Scrutinize inspection and contract language. Some purchase agreements give buyers easy exits through broad inspection or termination clauses that can create problems for estate timelines and court coordination.

Prepare for Controlled Access

Estate properties need controlled showing access. Protect valuables, personal records, and family privacy before the property goes on the market.

Plan Around Operational Realities

Showings need to work around the property's condition, any remaining occupants, maintenance schedules, and court timelines. A showing plan that accounts for these realities prevents surprises and protects the property.

Most families are surprised to learn that the stepped-up basis under IRS Code § 1014 — the federal tax provision that resets the cost basis of inherited property to its fair market value at the date of death — means that capital gains tax on a probate home sale is typically zero when the property is sold during probate. The tax basis is reset to the fair market value at the date of death, so if the property sells at that value, there is no taxable gain. Texas has no state income tax, so there is no state capital gains tax either. However, if the property appreciates after the date of death and is held before selling, gains beyond the stepped-up basis are taxable at the federal long-term capital gains rate of 0%, 15%, or 20% depending on the heir's income level.

• Start the closing checklist early. Don't wait until you have a contract — many closing tasks can be anticipated and prepared in advance.
• Make the move-out and possession plan painfully clear. Who vacates when, who has access, what condition the property should be in at closing.
• Confirm signers, wiring instructions, and final funds flow. Estate closings may require specific signing authority. Confirm this with the title company and attorney well before closing day.

Closing the sale doesn't end the executor's responsibilities. The proceeds go into the estate account, and the executor must manage the final distribution. The executor typically has 60 to 90 days after the closing to complete the final accounting, pay remaining estate debts, and distribute net proceeds to the beneficiaries as specified in the will.

• Preserve a complete estate real-estate file. Keep copies of all contracts, disclosures, inspection reports, closing documents, and correspondence. Retain these records for a minimum of 4 years — the statute of limitations for most real estate claims in Texas.
• Transition the estate from sale mode to wrap-up mode. Coordinate with the attorney and CPA on final distribution, tax reporting, and estate closure.