Inheriting a house in Virginia can feel overwhelming — especially when you’re already grieving. There are legal steps, tax implications, and big decisions to make. This guide walks you through exactly what to do, step by step.
Step 1: Secure the Property
Before anything else, make sure the property is secure:
- Change the locks if you don’t know who has keys
- Make sure the utilities stay on (especially in winter to prevent pipe damage)
- Check on the homeowner’s insurance — many policies lapse when the owner passes away. Contact the insurance company to update the policy or get a vacant property policy
- Remove any valuables and important documents
- If the property is vacant, let the neighbors know someone is managing it
Step 2: Determine If Probate Is Required
In Virginia, whether probate is required depends on how the property was titled:
- Joint Tenancy with Right of Survivorship: The property passes directly to the surviving owner. No probate needed.
- Living Trust: If the property was held in a trust, the successor trustee can transfer or sell it without probate.
- Sole Ownership or Tenancy in Common: Probate is required. You’ll need to open an estate through the Circuit Court in the city where the deceased resided.
Most inherited properties in Virginia require probate. The process involves filing the will (if one exists) with the Circuit Court and getting appointed as executor or administrator.
Step 3: Get Appointed as Executor or Administrator
To legally manage the estate — including selling real property — you need a Certificate of Qualification (also called Letters Testamentary if there’s a will, or Letters of Administration if there isn’t).
Here’s the process:
- File the will and death certificate with the Circuit Court Clerk’s office
- Complete the required paperwork (Probate Information Form, Qualification Questionnaire)
- Attend a brief hearing before the Clerk (some courts handle this administratively)
- Post a surety bond (unless the will waives this requirement)
- Receive your Certificate of Qualification
In Hampton Roads, each city has its own Circuit Court: Virginia Beach, Norfolk, Chesapeake, Portsmouth, Hampton, Newport News, and Suffolk.
Step 4: Understand the Tax Implications
This is where many heirs make costly mistakes. Here’s what you need to know:
Stepped-Up Cost Basis: When you inherit property, your cost basis is “stepped up” to the fair market value at the date of death — not what the deceased originally paid. This is a significant tax advantage.
Example: Your parent bought the house in 1985 for $80,000. At the time of death, it’s worth $280,000. Your cost basis is $280,000. If you sell for $280,000, you owe zero capital gains tax — even though the house appreciated $200,000.
If you sell for more than the stepped-up value, you’ll pay capital gains tax only on the difference. If you sell for less, you may be able to claim a capital loss.
Important: This is general information, not tax advice. Consult a CPA or tax attorney for your specific situation.
Step 5: Decide — Keep, Rent, or Sell?
You have three options:
Keep it: Move in or use it as a second home. You’ll be responsible for mortgage payments (if any), property taxes, insurance, and maintenance.
Rent it: Turn it into a rental property. Be prepared for landlord responsibilities — tenant screening, maintenance, legal compliance, etc.
Sell it: Convert the property to cash. This is the most common choice, especially when multiple heirs are involved or when the property needs significant work.
How to Sell an Inherited House As-Is in Hampton Roads
If you decide to sell, you don’t have to put money into repairs, cleaning, or staging. Many heirs sell to a cash buyer like us because:
- No cleaning out: Leave behind furniture, personal belongings, everything. We handle it.
- No repairs: Sell the house exactly as it is — outdated, damaged, neglected, whatever.
- No agent commissions: Save 5–6% of the sale price.
- Fast close: We can close in as little as 7 days once probate is cleared.
- Simple process: Especially important when multiple heirs are involved and everyone just wants to be done.
Common Mistakes Heirs Make
- Waiting too long: Empty houses deteriorate fast. Vandalism, weather damage, and code violations add up.
- Spending money on renovations: Unless you’re certain the return will exceed the investment, renovating an inherited property is risky — especially if you’re not local.
- Ignoring property taxes: You become responsible for property taxes from the date of death. Unpaid taxes accrue penalties.
- Not getting a proper valuation: Know what the property is worth before making decisions.
- Fighting with other heirs: Get legal advice early if there’s disagreement. A cash sale can resolve disputes faster than a traditional listing.
Need Help?
If you’ve inherited a house in Hampton Roads and want to explore your options, call us at 757-744-3252. We’ve helped hundreds of families navigate this process over the past 23 years. No pressure, no obligation — just honest advice about your situation.
