Inherited a Home in California? Read This Before You Do Anything.
Inheriting a property sounds like a gift — but for most families, it quickly becomes a source of stress, confusion, and unexpected costs. Here's what most people don't know before they make a decision they can't take back.
Every week we speak with Southern California families who inherited a home and didn't know where to start. The calls usually begin the same way: "We just lost someone we love, and now we have this house, and we have no idea what to do."
If that's where you are right now, this article is for you. No pressure, no pitch — just the information you need to make a clear-headed decision.
Your property taxes may change
Under California's Proposition 19, most inherited properties no longer qualify for the parent-child property tax exclusion. Unless you plan to use the home as your primary residence within one year, the property will be reassessed at current market value. In high-appreciation markets like Los Angeles, Orange County, and San Diego, this can mean a significant increase in annual property taxes.
Carrying costs start immediately
Even if the home sits vacant, you are financially responsible from the day you inherit it — insurance, utilities, maintenance, property taxes, and HOA fees if applicable. On a typical Southern California home, these carrying costs can run $1,500–$3,000 per month or more. Every month you delay a decision is money out of your pocket.
Multiple heirs means multiple decisions
When a property passes to more than one person, every major decision requires agreement from all parties. One heir may want to sell quickly. Another may want to rent. A third may want to move in. Without a clear agreement, these situations can drag on for months — costing everyone involved while the property sits idle.
The timeline depends on how the estate was set up
If your loved one had a living trust in place, the transfer of property can happen relatively quickly and privately — often within weeks. A trust bypasses the probate court process entirely.
If the estate needs to go through probate court, the timeline varies based on the complexity of the estate, court schedules, and whether all parties are in agreement. Knowing where you stand early gives you more options, not fewer. An estate attorney can assess your specific situation in a single consultation.
You don't have to figure this out alone.
We've helped Southern California families navigate inherited properties through all kinds of situations. Whether you're ready to move quickly or still sorting through the details, we'll walk you through your options with real numbers and zero obligation.
Your three main options
Sell the home. The most straightforward path for most families. You can sell for cash — which closes quickly and requires no repairs — or list on the open market to maximize your sale price. We show you both options with real numbers.
Rent the property. If the home carries sentimental value or you believe rents will continue to rise, holding and renting is an option. Be aware of California's tenant protection laws, which are among the strongest in the nation.
Move in. If you plan to use the home as your primary residence, moving in within one year may qualify you for a partial Prop 19 exclusion on property taxes. Consult a CPA who specializes in California real estate tax before making this decision.
This article is for informational purposes only and does not constitute legal, tax, or financial advice. Please consult a licensed California estate attorney and CPA regarding your specific situation. Open Market Offers operates under a licensed California real estate agent.