Inherited a House? Here Are the 7 Mistakes That’ll Cost You Thousands (And How to Avoid Them)

So you inherited a house. First off, I’m sorry for your loss—inheritances usually come from situations nobody wants to be in. And now, on top of dealing with grief and family dynamics, you’ve got this property you need to figure out what to do with.

Here’s the thing: most people who inherit houses make the same expensive mistakes. Not because they’re dumb, but because they’ve never dealt with this situation before and nobody tells them what to watch out for.

Let me walk you through the biggest screw-ups we see (almost weekly) and how you can dodge them.

Mistake #1: Letting the house sit empty for months (or years)

I get it. You’re grieving. The house has memories. You’re not ready to deal with it. So you figure you’ll “take care of it later.”

Here’s the brutal truth: every month that house sits empty, it’s costing you money. We’re talking:

• Property taxes (still due, whether you live there or not)
• Insurance (empty houses need special policies that cost more)
• Utilities (you can’t just shut everything off—frozen pipes, anyone?)
• Maintenance (grass doesn’t stop growing, gutters don’t stop clogging)
• Vandalism risk (empty houses are targets)

One client came to us with an inherited house in Springfield that had been sitting empty for 18 months. By the time they decided to sell, they’d paid over $20,000 in carrying costs. Plus, the house had deteriorated—the AC system died, squirrels got in the attic, and the yard was a jungle.

They could’ve sold it immediately after inheriting and avoided all that.

What to do instead: Make a decision within 30-60 days of inheriting. You don’t have to rush, but you do need to have a plan. Even if that plan is “rent it out for a year while I figure things out,” that’s better than letting it sit empty.

Mistake #2: Thinking you have to fix everything before selling

This is the one that kills me. Someone inherits a house that needs work—maybe it’s dated, maybe there’s some damage, maybe it just hasn’t been updated since 1985. And they immediately think: “I need to fix all this before I can sell it.”

So they drop $30,000-50,000 renovating a house they don’t want, in a neighborhood they don’t live in, trying to make it perfect for some imaginary buyer.

Here’s what actually happens: they spend way more than they budgeted (because there are always surprises), it takes way longer than expected (because contractors), and they don’t get that money back when they sell.

The reality check: Buyers come in two flavors:

1. Retail buyers who want move-in ready
2. Investors who want as-is deals

If you’re going to appeal to retail buyers, you need to do a FULL renovation—not a half-assed one. And that’s expensive. We’re talking $50,000-100,000+ for a complete update.

Most inherited houses fall into a weird middle ground where they’re not nice enough for picky retail buyers but too expensive after your renovation for investors.

What to do instead: Get multiple opinions on value:

• What’s it worth as-is?
• What’s it worth fully renovated?
• What would renovations actually cost?

Then do the math. Often, selling as-is to an investor or flipper makes more financial sense than renovating, even if the offer seems lower at first glance.

We bought a house in Worcester last year from heirs who were about to spend $40,000 fixing it up. We showed them the numbers: after renovation costs, holding costs, and agent fees, they’d net about $180,000. We offered them $175,000 cash, as-is, closing in two weeks. They saved the hassle, saved the money, and got to move on with their lives.

Mistake #3: Not understanding the tax situation

Oh man, this one gets complicated, and I’m not a tax guy (talk to your accountant), but here’s what trips people up:

When you inherit a house, you get what’s called a “stepped-up basis.” Basically, the house’s value for tax purposes becomes whatever it was worth when you inherited it, not what the deceased person originally paid for it.

Example: Your uncle bought the house in 1975 for $40,000. When he died in 2024, it was worth $300,000. You inherit it with a basis of $300,000.

If you sell it for $300,000, you owe ZERO capital gains tax. Beautiful.

But if you wait three years and sell it for $350,000, you owe capital gains on that $50,000 difference. Not so beautiful.

The mistakes people make:

• Waiting too long to sell (and triggering unnecessary capital gains)
• Not getting a proper appraisal at the time of inheritance
• Not understanding that improvements increase your basis (so keep those receipts)
• Dividing the sale proceeds wrong between multiple heirs and creating tax nightmares

What to do instead: Talk to a CPA who specializes in real estate BEFORE you make any major decisions. Spending $500 on good tax advice can save you $5,000 in taxes.

Mistake #4: Letting family drama derail everything

Oof. This is the messy one. Nothing brings out family dysfunction like an inheritance.

Maybe your sister thinks you should keep the house because “Mom would have wanted that.” Maybe your brother wants to sell but only if he gets a bigger share because he “took care of Dad.” Maybe there’s a cousin who wants to buy it but at a family discount that doesn’t make financial sense.

We’ve seen families destroy relationships over inherited houses. Seriously. Siblings who don’t talk anymore because they couldn’t agree on what to do with Mom’s house.

The hard truth: Unless the will specifically says otherwise, inherited property should be divided equally among heirs. And that usually means selling it and splitting the proceeds.

If one heir wants to keep it, they should buy out the others at fair market value. Not at some discount because “it’s family.”

What to do instead:

• Get a professional appraisal so everyone knows the real value
• Agree on a decision-making process (majority rules? Unanimous? Mediator?)
• Set a timeline (we’ll decide by X date)
• Put everything in writing
• Consider hiring a mediator if things get tense

And here’s my controversial advice: sometimes it’s better to take a slightly lower cash offer from an investor just to avoid months of family fighting. Your relationships are worth more than an extra $10,000.

Mistake #5: Trying to be a long-distance landlord

“Maybe we should just rent it out!”

I hear this all the time from people who inherit houses in other cities or states. It sounds logical—keep the asset, generate income, everybody wins.

Except being a landlord is WORK. Especially long-distance landlording.

You need to:

• Find and screen tenants
• Handle maintenance calls (at 2am when the water heater breaks)
• Deal with late rent payments
• Navigate local landlord-tenant laws
• Pay for property management (if you’re smart)
• Handle evictions when necessary
• Keep up with property taxes and insurance

And here’s what nobody tells you: rental properties in C-class neighborhoods (where most inherited houses are) attract problem tenants more often than you’d like.

One woman inherited her mom’s house in Lowell, decided to rent it out. Six months later, the tenants stopped paying rent. The eviction process took four months. The house was trashed. Total loss: about $15,000 plus massive stress.

What to do instead: Only consider renting if:

• The house is in good condition
• It’s in a solid rental market
• You have the cash reserves for emergencies
• You’re willing to hire professional property management
• You live close enough to handle issues

Otherwise, sell it. Take the money. Invest it in something that doesn’t call you at midnight with plumbing problems.

Mistake #6: Not dealing with the stuff inside

This is the one that stops people in their tracks. The house is full of… stuff. A lifetime of belongings. Some valuable, most not, all filled with memories.

So the house sits, full of furniture and boxes, because nobody wants to deal with it.

Meanwhile, you’re paying carrying costs. And the stuff is actually making the house harder to sell (buyers can’t visualize the space when it’s crammed with someone else’s belongings).

The overwhelm is real, but here’s the system:

Week 1: Family members take what they want. Set a deadline. After that date, it’s fair game.

Week 2: Have an estate sale for anything valuable. Hire a professional estate sale company—they do all the work, you get a percentage.

Week 3: Donate the rest. Goodwill, Salvation Army, local charities will often come pick up.

Week 4: Trash the remainder. Yes, it feels wasteful. No, you can’t save everything.

Total time: One month. Then the house is empty and you can move forward.

What not to do: Rent a storage unit “temporarily” for all the stuff. That “temporary” unit ends up costing you $150/month for the next five years while the stuff sits there untouched.

Mistake #7: Accepting the first offer without shopping around

Let’s say you’ve decided to sell. Someone makes you an offer. It seems okay. You accept because you just want this whole thing done with.

But did you actually know what the house was worth? Did you get multiple offers? Did you understand all your options?

We see this constantly: someone accepts an offer from a flipper or investor that’s $30,000-40,000 below what they could have gotten, simply because they didn’t know any better.

What to do instead: Get at least three professional opinions on value:

• A real estate agent’s CMA (Comparative Market Analysis)
• An independent appraiser
• Cash offers from 2-3 investor/buyer companies

This doesn’t mean you have to go with the highest number. Sometimes a lower cash offer with a quick close beats a higher offer with contingencies and a 60-day close. But at least you’re making an informed decision.

And here’s the thing: reputable buyers (like us) aren’t offended if you shop around. We encourage it. We want you to feel confident you’re making the right choice.

The emotional side (because this stuff is hard)

Look, I’ve been doing this long enough to know that inherited houses aren’t just about money. They’re about loss, family, memories, and often complicated emotions.

You might feel guilty for selling your parents’ house. You might feel pressure from siblings. You might be grieving and just want someone to take this burden off your shoulders.

All of that is valid.

But here’s what I want you to know: there’s no wrong decision. Keeping the house isn’t more honorable than selling it. Selling it doesn’t mean you didn’t love the person who left it to you.

Your parents/uncle/grandparent left you this asset because they wanted to help you, not burden you. Honor their memory by making the choice that’s best for YOUR life.

If that means selling it quickly to an investor so you can avoid months of stress—that’s okay.

If that means taking time to fix it up and sell it for top dollar—that’s okay too.

If that means keeping it and renting it out—also okay.

Just make the decision that works for you and your family, with clear eyes about the real costs and benefits of each option.

Your next step

If you’ve inherited a house in Massachusetts and you’re trying to figure out what to do, here’s what I suggest:

1. Get clear on your timeline: When do you need/want this resolved?
2. Understand the carrying costs: What’s it costing you monthly?
3. Get professional advice: CPA for taxes, real estate attorney for legal stuff
4. Know your options: What can you sell it for as-is vs. fixed up?
5. Talk to your co-heirs: Get everyone on the same page
6. Make a decision: Even a imperfect decision made quickly is often better than a perfect decision made too late

And if you want a no-pressure conversation about your specific situation, call us. We’ve walked dozens of families through inherited property decisions. Sometimes we end up buying the house, sometimes we refer them to a traditional agent, sometimes we just give advice and wish them well.

No sales pitch. No pressure. Just honest guidance from people who’ve seen it all.

Because at the end of the day, we’re not just buying houses. We’re helping people navigate complicated situations and move forward with their lives. And that matters more than any single transaction.