Inheriting a house in Philadelphia can be a gift and a burden at the same time. Between probate, taxes, repairs, and coordinating with other heirs, a lot of people aren’t sure where to start. This guide walks through the practical steps and your real options. (This is general information, not legal or tax advice — confirm your specifics with an estate attorney or tax professional.)
Step 1: Understand where the property is in probate
In Pennsylvania, most inherited real estate passes through probate before it can be sold. Probate is handled through the Register of Wills in the county where the person lived, and estate administration runs through the Orphans’ Court. If you’re named executor, you’ll typically need to be officially appointed before you can sell. If there’s no will, the court appoints an administrator. The timeline varies widely depending on the estate’s complexity.
Step 2: Know the tax picture
Two taxes commonly come up with inherited property: Pennsylvania inheritance tax, which is based on your relationship to the person who passed (rates differ for children, siblings, and others — verify current rates), and capital gains, which generally apply only to appreciation after the date of death because inherited property usually receives a stepped-up basis to its value at that time. For many recently inherited homes, that means little or no capital gains on a reasonably quick sale. A tax professional can tell you exactly where you stand.
Step 3: Get clear on the home’s real condition and value
Many inherited Philadelphia homes — especially older rowhomes — haven’t been updated in years. Before deciding how to sell, get an honest read on what the home would sell for in top condition, what repairs that would require, and what it’s worth as-is today. That gap is the whole decision.
Step 4: Choose how to sell
You generally have three routes. List with an agent — best if the home is in good shape and you can wait, but expect repairs, showings, commissions (often 5-6%), and a timeline of months. Sell it yourself (FSBO) — saves commission but puts all the work on you. Sell to a cash buyer as-is — fastest and simplest, with no repairs, cleanout, or fees, in exchange for a price that reflects the home’s as-is condition. The cash route is usually best when the house needs work, heirs are spread out, or you simply want it done.
Step 5: If you sell to a cash buyer, here’s how it goes
With a local buyer like Liberty Pathway Homes, the process is short: you share the property details, get a no-obligation cash offer within 24 hours, and close on a date that works for the estate — often in as little as a week, with closing costs potentially covered. You can leave behind anything you don’t want.
The bottom line
If the inherited house is in great shape and you’re not in a rush, listing it may net the most. If it needs work, involves multiple heirs, or you live out of the area, selling as-is for cash is usually the least stressful path. Either way, get clear on probate status, the tax picture, and the as-is value first.
Have an inherited Philadelphia house you’re thinking about selling? Call (215) 515-7799 or request a free, no-obligation cash offer below.