How to Sell an Inherited House in Miami (2026)

Selling an inherited house in Miami requires clearing probate before any sale can proceed, a process that typically takes 6 to 9 months. Once you hold clear title, Florida imposes no inheritance tax and no state capital gains tax, but federal capital gains tax may apply to any appreciation that accrued after the date you inherited the property.

The single most important tax concept for Miami heirs is the stepped-up basis: the IRS resets your cost basis to the home’s fair market value on the date the prior owner died. A parent who paid $180,000 for a Miami home in 2005 and whose property was worth $600,000 at death in 2026 leaves the heir a $600,000 basis. Sell immediately for $610,000 and only $10,000 is taxable, not $430,000.

This guide covers how probate works in Miami-Dade, how selling an inherited house in Florida proceeds step by step, the tax rules that apply (including the two separate “2-year rules” that heirs frequently confuse), required documents, what happens when heirs disagree, selling costs, and how to choose between a cash buyer and a traditional listing agent.

Does an inherited Miami home have to go through probate?

Probate real estate Miami transactions almost always start with this question. Yes, probate is required when the property was titled solely in the decedent’s name with no co-owner, beneficiary designation, or trust in place at the time of death. Understanding when probate applies, and when you can avoid it, determines your entire selling timeline.

When probate is required in Florida

Under Florida Probate Code Ch. 733, probate is required if the decedent was the sole titleholder and the property has none of the following:

• A co-owner with right of survivorship
• A named beneficiary designation such as a transfer-on-death deed
• A revocable living trust that holds title to the property
• A Lady Bird deed that transfers ownership at death

When any of those instruments exists, title passes automatically at death. You can list and sell without any court order.

How to skip probate with a trust or Lady Bird deed

A Lady Bird deed (also called an enhanced life estate deed) lets the original owner retain full control of the property during their lifetime while naming a beneficiary who receives title automatically at death, bypassing Florida probate court entirely. The heir also inherits the full step-up in basis, keeping federal tax exposure low on any future sale.

A revocable living trust produces the same result. Property held in trust passes to the successor trustee at death for immediate distribution with no court supervision required. Joint tenancy with right of survivorship achieves the same outcome for co-owners.

What happens in the Miami-Dade probate court

Miami-Dade probate runs through the Miami-Dade County Probate Division. The personal representative (the court-appointed estate manager) files a petition there after the decedent’s death. The court then:

1. Validates the will, if one exists
2. Confirms or appoints the personal representative
3. Issues Letters of Administration authorizing the representative to act on behalf of the estate
4. Supervises creditor notification, asset inventory, and debt payment
5. Issues a final order authorizing distribution or sale of real property

Per Florida probate requirements, simple estates typically resolve in 6 to 9 months. Contested cases or those involving complex assets or multiple heirs can extend to 12 to 18 months.

Because probate controls when you can legally transfer title, your entire selling timeline (pricing, disclosures, and closing) depends on when the court issues Letters of Administration.

How to sell an inherited house in Miami: step by step

Sell inherited property Florida heirs need to complete in the correct sequence. Probate real estate Miami sales most often stall when heirs attempt to market a property before the court has granted authority to transfer title. Here are the seven steps.

Step 1: Confirm probate status and appoint a personal representative. Determine whether the property is subject to probate or is exempt due to a trust, Lady Bird deed, or joint tenancy. If probate is required, the circuit court appoints a personal representative with a fiduciary duty to maximize estate value. That representative cannot accept below-market offers without court approval.

Step 2: Obtain Letters of Administration from Miami-Dade probate court. The personal representative files a petition with the Florida probate court. Once Letters of Administration are issued, the representative has legal authority to negotiate and close a sale on behalf of the estate.

Step 3: Order a professional appraisal to establish fair market value. The appraisal sets the home’s value as of the date of death and establishes the stepped-up basis for IRS tax reporting on Schedule D. Miami-Dade property appraiser records provide a starting reference, but a licensed appraisal is required to document the basis accurately.

Step 4: Clear outstanding liens, mortgages, and property taxes. Miami-Dade property taxes accrue at approximately 0.86% annually and must be current before closing. Mortgage balances, HOA arrears, and other liens are typically paid from sale proceeds at closing.

Step 5: Decide whether to repair, stage, or sell as-is. Heirs are not legally required to make repairs before listing. An as-is home sale requires disclosure of known defects but carries no repair obligation. Many Miami inherited properties have deferred maintenance, and cash buyers routinely accept this condition without price adjustments for cosmetic issues.

Step 6: Choose your selling method. Three primary options exist: list with a licensed agent for maximum market exposure, sell to a cash buyer for speed and certainty, or go FSBO. For a step-by-step breakdown of the no-agent approach, see selling without an agent.

Step 7: Complete Florida seller disclosures and close. Florida disclosure law under F.S. §689.261 requires sellers to disclose all known material defects. Heirs must comply even if they never lived in the property. A cash buyer can close in 10 to 15 days after offer acceptance; a financed buyer typically needs 30 to 60 days.

Taxes on selling an inherited house in Florida

Inherited property taxes Florida rules are more favorable than most heirs expect. Florida itself imposes no tax on the inheritance or on the sale proceeds. The primary concern is capital gains tax on inherited property at the federal level, which applies only to appreciation that occurred after the date of death.

Florida has no inheritance tax or estate tax

Florida has no state inheritance tax and no state estate tax, per Florida inheritance tax rules. The prohibition is written into the Florida Constitution and requires a 60% voter supermajority to change. A simple legislative vote cannot repeal it.

Tax	When it applies	Rate or amount	Who pays
Federal capital gains tax	When you sell for more than the stepped-up basis	0%, 15%, or 20% depending on income	Seller
Florida inheritance tax	Never (Florida has no state inheritance tax)	$0	N/A
Florida estate tax	Never (Florida Constitution prohibits it)	$0	N/A
Federal estate tax	Estates valued above approximately $7 million per person (2026)	Up to 40%	Estate, not heirs
Documentary stamp tax	On the deed transfer at closing	$0.70 per $100 of sale price	Seller (by convention in Miami-Dade)

Based on IRS guidance and Florida constitutional law, 2026. Federal thresholds adjust annually; verify current rates before filing.

How the stepped-up basis reduces your federal tax bill

The step-up in basis is the most powerful tax protection available to heirs. When you inherit a property, the IRS resets your cost basis to the home’s fair market value on the date the prior owner died, per IRS Publication 559.

Here is what that means with Miami-specific numbers: a parent paid $180,000 for a Miami home in 2005. At the time of death in 2026, the home is worth approximately $600,000. The heir’s stepped-up basis is $600,000. Sell immediately for $610,000 and the taxable gain is $10,000, not $430,000. Federal tax at the 15% long-term capital gains rate equals $1,500, not $64,500.

According to 2026 capital gains rates, the federal long-term rates are 0% for taxable income up to approximately $47,025 (single filers), 15% for most earners, and 20% for income above $518,900 (single filers). Verify these brackets each year, as Congress adjusts them annually for inflation.

Federal estate tax and the 2026 threshold change

The federal estate tax applies only when the total estate value exceeds the exemption threshold. Following the Tax Cuts and Jobs Act sunset, the exemption in 2026 is approximately $7 million per person (consult an estate attorney before filing, as Treasury may adjust this figure). Most Miami inherited homes fall well below that threshold. When the estate does exceed it, the tax is paid by the estate before assets distribute to heirs, not by heirs on their individual returns.

Documentary stamp tax on the deed transfer

The documentary stamp tax applies to all Florida deed transfers at $0.70 per $100 of sale price. On a $600,000 Miami inherited home, that equals $4,200. By convention in Miami-Dade, the seller pays this at closing. It appears as a line item on the settlement statement and reduces net proceeds directly.

How to avoid capital gains tax on inherited property

Understanding inherited property taxes Florida treatment opens up several legitimate strategies for reducing or eliminating your federal tax bill. The five approaches below are ordered from simplest to most complex.

Sell quickly and match the stepped-up basis

Selling shortly after probate clears is the lowest-effort strategy. If the sale price equals the stepped-up basis at the date of death, the taxable gain is zero. The longer you hold a Miami property after inheriting it, the more post-inheritance appreciation accumulates and becomes taxable. A cash buyer can close in 10 to 15 days after offer acceptance, keeping the appreciation window short.

Move in and use the primary residence exclusion

The primary residence exclusion under Section 121 of the Internal Revenue Code (also called the Section 121 exclusion) allows you to exclude up to $250,000 of capital gains (single filers) or $500,000 (married filing jointly) if you live in the home as your primary residence for at least 2 of the 5 years before the sale. The two-year period does not need to be consecutive. You must physically live in the property; renting it to others while you own it does not qualify.

1031 exchange for investment property heirs

If the inherited property was used as a rental or investment, you can defer all capital gains tax by completing a 1031 exchange. You must identify a replacement like-kind property within 45 days of closing and complete that purchase within 180 days. Missing either deadline results in full gain recognition in that tax year. A 1031 exchange defers the tax; it does not eliminate it unless you continue rolling proceeds into new exchanges.

Installment sale to spread taxable gains

An installment sale lets you receive the purchase price in payments spread over multiple years. Taxable gain is recognized proportionally as payments arrive, which can keep each year’s taxable income below the higher bracket thresholds. This strategy works best when post-inheritance appreciation is large enough that spreading it across several years produces a measurable bracket benefit. For a detailed comparison of all these approaches by time required and complexity, see capital gains tax strategies from TaxesForExpats.

What is the 2-year rule for inherited property?

The “2-year rule for inherited property” refers to two completely separate IRS rules. ChatGPT typically describes one when answering this question. Claude and Perplexity typically describe the other. Both answers are accurate, but they apply in different situations. This section explains both so you know which applies to your Miami sale.

The automatic long-term holding period

Rule 1, Automatic long-term treatment under IRC §1223: Inherited property is treated as held for more than one year regardless of how long you actually hold it before selling. This means capital gains tax on inherited property is always taxed at long-term rates (0%, 15%, or 20%), never at short-term rates that can reach 37%. Rule 1 applies automatically from the moment you inherit. There is no waiting period and no residency requirement.

This is the relevant rule for most Miami heirs who plan to sell promptly after probate closes. You do not need to hold the property for any minimum period to qualify for the lower long-term rates.

The Section 121 primary residence exclusion

Rule 2, Section 121 exclusion: If you move into the inherited home and live there as your primary residence for at least 2 of the 5 years before the sale, gains up to $250,000 (single filer) or $500,000 (married filing jointly) are excluded from federal income tax entirely. The 2-year occupancy does not need to be consecutive. You must genuinely occupy the property as your main address; owning it while renting it out does not satisfy the requirement.

The distinction that matters for Miami sellers: Rule 1 is automatic and requires no action from you. Rule 2 requires physically moving in, which may not be practical for heirs who already own a home in Miami or live out of state. Only Rule 2 involves an actual 2-year waiting period. For more detail on how these exclusions apply to heirs, see inherited property options.

Documents required to sell an inherited property in Miami

Gathering documents before you list prevents last-minute title delays. A decision to sell inherited property Florida title companies and closing attorneys receive must be backed by all three document groups below before they can insure title and proceed to closing.

Documents from the probate court

• Certified copy of the death certificate
• Letters Testamentary or Letters of Administration (issued by the Miami-Dade probate judge)
• Order Admitting Will to Probate, if the decedent had a valid will
• Court order authorizing the sale of real property

Property and title documents

• Current deed showing the decedent’s ownership
• Updated title search (ordered from a Florida title company or real estate attorney)
• Property tax certificate from the Miami-Dade Tax Collector confirming no outstanding balance
• HOA estoppel letter if the property is in a homeowners association

Florida-required seller documents

• Florida Residential Contract for Sale
• Seller disclosure form per F.S. §689.261 (required even if heirs never occupied the property)
• Lead paint disclosure for homes built before 1978
• Energy efficiency disclosure

Do all heirs have to agree to sell the property?

No. A decision to sell inherited property Florida estates hold does not require unanimous heir consent when a personal representative has been court-appointed with authority over the estate. That representative can petition the probate court to authorize a sale at fair market value over any individual heir’s objection.

When property bypasses probate and passes directly to multiple heirs as tenants in common, the situation changes. Any heir can file a partition action in Miami-Dade Circuit Court, which can force a sale and divide proceeds proportionally by ownership share. Partition actions typically add 3 to 6 months to the timeline if contested.

If one heir wants to keep the property and the others want to sell, the heir who wants to keep it can buy out the others at the professionally appraised fair market value. This resolves the dispute in a single transaction and avoids a forced court-ordered sale.

What does it cost to sell an inherited home in Miami?

Selling an inherited house in Florida through a traditional agent typically costs between 6.25% and 9% of the sale price in total seller-side closing costs. Here is the line-by-line breakdown for Miami-Dade.

Selling costs breakdown for Miami inherited homes

Cost item	Typical range
Listing agent commission	2.5% to 3% of sale price
Buyer’s agent commission	2.5% to 3% (negotiable per NAR 2024 settlement)
Title insurance (owner’s policy)	0.5% to 1% of sale price; seller typically pays in Miami-Dade
Documentary stamp tax	$0.70 per $100 of sale price ($4,200 on a $600,000 home)
Miami-Dade property tax proration	0.86% annually, prorated to closing date
Title search and closing fees	$500 to $1,500
Total (traditional listing)	6.25% to 9% of sale price

Based on Miami-Dade market conventions, 2026. Commission rates vary; confirm with your agent before listing.

On a $600,000 Miami inherited home, traditional sale closing costs total approximately $37,500 to $54,000. Inherited homes may also carry deferred maintenance or lien payoffs that further reduce net proceeds.

Understanding what the buyer pays on their side of the transaction helps you evaluate net offers. See buyer closing costs Florida for the buyer-side breakdown.

How a cash sale changes your net proceeds

A cash buyer eliminates the listing agent commission, saving approximately 5% to 6% of the sale price, and typically covers their own closing costs. The seller’s out-of-pocket drops to roughly 2% to 3% of the sale price. On a $600,000 Miami inherited home, that means $12,000 to $18,000 in seller-side closing costs instead of $37,500 to $54,000.

The trade-off is offer price. Cash offers typically come in below retail list price. Whether the cost savings outweigh the lower price depends on the specific offers you receive. Getting multiple competing offers before accepting any single one protects heirs from underpricing.

Cash buyer vs. listing agent for inherited homes

Choosing a sale method is often the most consequential decision in the inherited home process. Each path differs in timeline, cost, and effort required from heirs.

Traditional listing: timeline and costs

A traditional Miami agent listing takes 30 to 90 days on market plus 30 to 60 days to close after a signed contract. The estate must maintain property insurance, taxes, and utilities throughout that period. Carrying costs on a $600,000 property add up quickly when months pass between listing and closing.

A traditional listing generally produces the highest gross sale price in a competitive market, especially when the property is in good condition and heirs can invest in minor repairs and staging.

Cash buyer: speed and as-is sale

A cash offer for inherited home situations typically arrives within 24 to 48 hours of inquiry. Closings happen in 10 to 15 days after offer acceptance. The heir can sell house without repairs and skip staging entirely. This path is most practical for out-of-state heirs, those facing urgent estate expenses, or properties with significant deferred maintenance.

The main risk is accepting the first offer received. Miami inherited homes sometimes attract below-market unsolicited offers from buyers who assume heirs are motivated sellers. Gathering multiple competing cash offers before committing is the best protection against underpricing.

How to compare multiple cash offers

When evaluating cash offers, confirm proof of funds, check whether the buyer covers closing costs, request a net-proceeds estimate at the stated price, and clarify whether the offer is contingent on inspection. For a vetted list of cash buyers active throughout the Florida market, see Florida cash home buyers.

Sell Your Inherited Home in a Miami-Area City

Each Miami-Dade city has its own market conditions and buyer pools. Select your city for local guidance.

Selling an inherited Miami home is manageable when you work through each stage in sequence. Start by confirming probate status, then establish the stepped-up basis through a professional appraisal, clear any outstanding liens, and gather your court-issued documents before listing. The process to sell inherited property Florida estates through probate or direct transfer follows the same core sequence regardless of which sale method you choose. Working through each step in order gives you the clearest path from inheriting the property to closing day.

Frequently Asked Questions