How to Sell an Inherited House in NYC (2026 Guide)

By Naor Harari · Updated [DATE] · General information, not legal or tax advice. Talk to an estate attorney and a tax professional.

If you’ve inherited a house in Brooklyn, Queens, the Bronx, Staten Island, or Manhattan, the sale usually can’t start until someone has legal authority to sign. Here’s the process in order.

1. Find out who has authority to sell

When someone dies owning a house in their own name, the Surrogate’s Court in the county where they lived appoints a fiduciary:

With a will: the named executor receives letters testamentary.
Without a will: an administrator (often a close relative) receives letters of administration.

New York’s EPTL 11-1.1 generally gives a fiduciary the power to sell estate property at public or private sale, unless the will or the court order limits that power. Two common snags:

Restricted letters. Letters are sometimes issued “restricted” as to real property, which means a further court order is needed before selling.
Specifically devised property. If the will leaves the house to a named person, the executor’s general power of sale doesn’t apply. The beneficiary has to take part in the sale, or the court has to authorize it (SCPA Article 19).

If the house was held in a trust, jointly with right of survivorship, or by a transfer-on-death deed, the path is different. Ask your attorney.

2. Secure and carry the property

While the estate is open, someone has to keep the house insured (vacant-home policies differ), heated in winter, and paid up on property taxes and water bills. These carrying costs are one reason many estates choose a faster sale. [PLACEHOLDER: Naor’s experience with a vacant estate house, e.g. frozen pipes]

3. Know the taxes, roughly

Basis step-up (federal): Inherited property generally takes a basis equal to fair market value on the date of death (IRS Pub. 551; 26 U.S.C. §1014). A sale soon after death at about that value may produce little capital gain. Get a date-of-death appraisal.
NY estate tax: For deaths in 2026, the NY basic exclusion amount is $7,350,000 (NYS DTF). Most estates fall under it, but NY has a “cliff” above it, so ask a professional.
Transfer taxes at sale: The seller generally pays NYS transfer tax (0.4% under $3M for residential) and NYC RPTT (1% up to $500,000, 1.425% above, for 1–3 family homes) (NYS DTF, NYC 311).

4. Get all heirs on the same page

Disagreements between siblings are the most common delay. Once the house is sold, the fiduciary distributes the proceeds according to the will or intestacy law. A clear number on the table often helps families decide.

5. Choose how to sell

Clean out, repair, and list: this gives you the most potential upside, but it costs cash upfront and takes months.
List as-is: you reach the open market, but financed buyers may struggle if the house is in poor condition.
Sell directly to an investor as-is: you get a lower price, but no repairs, no cleanout, and a known timeline.

6. Closing

The estate’s attorney prepares the deed (signed by the fiduciary) and the transfer tax forms, and pays off any mortgage or liens from the proceeds.

[PLACEHOLDER: short real story: “When I bought an inherited house in ___, the family…”]

Considering a direct sale? See how I buy inherited houses or get an offer. Related: Selling with DOB violations

Quick checklist for executors and administrators

Order a stack of certified death certificates.
Find the original will; the court generally needs the original, not a copy.
File in the Surrogate’s Court for the borough where the person lived (Kings, Queens, Bronx, Richmond or New York County).
Read your letters for any restriction on real property.
Insure, secure and winterize the house.
Get a date-of-death appraisal.
Decide how to sell: list, renovate first, or sell as-is.
Have your letters re-certified before closing if the title company asks.

Frequently asked

Is selling to a cash buyer allowed for an estate? Generally yes, if the fiduciary has authority and the price is fair. Get your own appraisal to compare.
What if one heir lives in the house? Talk to the estate attorney before anything else; occupancy changes the timeline.