Inheriting a home is a meaningful event that brings both emotional weight and practical decisions. Whether the property is located in Washington, DC, Maryland, or Virginia, beneficiaries often face the same core question, should we sell it, rent it, or keep it in the family? Each option has benefits, responsibilities, and long term implications. This guide explains what families should consider before making a decision.
Start with Understanding the Home’s Value
A comparative market analysis provides a clear picture of the property’s current value. Your real estate advisor will review recent sales in the neighborhood, property condition, and buyer demand. This information helps you understand what the home may sell for and whether updates are needed.
Consider the Financial and Emotional Factors
Inherited homes often carry sentimental significance. Before deciding, families should discuss both emotional considerations and financial responsibilities, such as taxes, insurance, and maintenance.
Option 1, Sell the Home
Selling is the most common path when families want a clean transition or when multiple beneficiaries are involved.
Benefits of Selling
- Provides immediate proceeds for beneficiaries
- Avoids long term maintenance or landlord responsibilities
- Helps close the estate more quickly
Things to Consider
- The home may need light preparation
- Choose whether to sell as is or make targeted updates
- Discuss timing with your estate attorney and advisor
Option 2, Rent the Home
Renting can be a good option if the property is located in a strong rental market or if the family wants to retain ownership.
Benefits of Renting
- Provides ongoing income
- Keeps the home in the family
- Can be a strong long term investment depending on the neighborhood
Things to Consider
- Property management responsibilities
- Maintenance and repair costs
- Tenant screening and legal requirements
- Impact on estate administration or trust guidelines
If rental management feels overwhelming, consider hiring a professional property manager.
Option 3, Keep the Home for Personal Use
Some families choose to keep the property as a primary residence, second home, or long term legacy asset.
Benefits of Keeping the Home
- Preserves family history and connection
- May allow you to move into a desired neighborhood
- Potential appreciation in value
Things to Consider
- Can the home be maintained comfortably
- Are there outstanding mortgages or taxes
- Are there multiple beneficiaries who must agree on the decision
Discuss Tax Implications with a Professional
Inherited properties often receive a step up in basis, which may impact future taxes. Always consult with a tax professional or estate attorney to understand how selling or keeping the home may affect you financially.
How a Real Estate Advisor Helps You Decide
A knowledgeable advisor provides clarity by evaluating:
- Current market value
- Neighborhood rental demand
- Estimated preparation costs
- Expected timelines for each option
- Connections to estate attorneys, tax professionals, and property managers
This guidance helps families make a confident, emotionally and financially sound decision.
Final Word
Choosing whether to sell, rent, or keep an inherited home is never simple, but understanding the pros and cons of each option can make the choice clearer. With the right advisor and a thoughtful approach, families can protect the home’s value, honor their loved one’s legacy, and choose the path that makes the most sense for their goals.
About Matt Cheney
Matt Cheney is a top-producing real estate advisor with Compass in Washington, DC, guiding buyers and sellers across DC, Maryland, and Virginia through high-stakes moves, from luxury sales to estate settlements, downsizing, and divorce-related transactions. With over $771 million in career sales volume and 22 years of experience, including more than two decades working on complex and sensitive real estate situations, Matt is known for calm, strategic guidance and brings hundreds of successful sales to clients seeking clarity and support during life transitions.