If you are thinking about selling your inherited property, you might be wondering, “Is there a holding period before selling my inherited home?” This article will answer that question—and you might be surprised at what you learn.
If you’ve recently inherited a home in Massachusetts, you’re likely wondering what your next steps should be. And if you’re thinking about selling it, it’s important to know if there are any legal, financial, or practical delays that could impact your ability to sell quickly.
Let’s break it down…
Probate Versus Inheritance
In general, an inherited property is what you receive when someone passes away and names you as the beneficiary of their real estate. However, just because you’ve inherited it doesn’t mean you can immediately sell it.
Here’s where probate comes in. Probate is the legal process of proving the will, ensuring debts are paid, and distributing the remaining assets to the rightful heirs.
➡️ If the house is still in probate, you likely can’t sell it yet—at least not until the court has finalized ownership.
➡️ If probate is complete and you’ve taken full legal ownership, then in most cases, you can sell right away.
Working with a real estate professional or an experienced homebuyer like Pegasus Home Buyers can help you navigate this process with minimal stress.
There Is a Holding Period—But Not the One You Think
Many people confuse “holding period” with legal waiting periods, but it’s actually a tax term in most real estate contexts.
Here’s how it works:
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The IRS uses a stepped-up basis to determine capital gains tax on inherited property.
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The “holding period” affects whether gains are taxed as short-term or long-term capital gains.
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However, inherited properties are automatically considered long-term, regardless of how long you personally own the property.
So, while there is technically a holding period in the tax world, it won’t prevent you from selling. Still, you should consult a CPA to understand the exact implications on your potential profit and tax obligations.
There May Be Other Delays
Even if probate is complete and you’re free to sell, there may be other factors that delay the process, such as:
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Outstanding mortgage balances
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Property liens or unpaid taxes
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Disputes between multiple heirs
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Maintenance or repairs required for selling on the market
The good news? Most of these issues can be resolved, and they usually don’t prohibit you from selling altogether. If you’re looking to sell fast and don’t want to deal with repairs or legal red tape, working with a local cash buyer like Pegasus Home Buyers can help you bypass many of these roadblocks.
Additional Section 1: How to Sell an Inherited House Fast in Massachusetts
Once you’ve confirmed that you’re legally allowed to sell the inherited property, the next step is figuring out how to sell it quickly and profitably.
Here are your options:
✅ Traditional Listing with a Real Estate Agent
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Best for homes in good condition
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Can take several weeks or months
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Includes repairs, showings, commissions, and closing costs
✅ For Sale by Owner (FSBO)
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Saves on commissions
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Requires marketing, negotiation, and legal work
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Time-consuming and risky without experience
✅ Sell to a Professional Cash Home Buyer
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Close in as little as 7 days
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No need for cleaning, staging, or repairs
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Pegasus Home Buyers pays cash, covers closing costs, and buys as-is
If your goal is to avoid headaches and speed up the sale, selling directly to an investor like Pegasus Home Buyers can be your best option—especially if the home is outdated, vacant, or tied up in estate complications.
Additional Section 2: Understanding Capital Gains Tax on Inherited Homes in Massachusetts
One of the most misunderstood parts of selling an inherited home is how capital gains taxes work.
Here’s what you should know:
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When someone dies and leaves you a home, the IRS gives it a stepped-up tax basis, meaning the property’s value is reset to the fair market value at the time of death.
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If you sell the home at or near that new value, you likely won’t owe much (if any) capital gains tax.
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If the property appreciates after the inheritance and you sell it later at a higher price, you’ll only pay tax on the difference between the stepped-up basis and the sale price.
This is why timing your sale strategically can reduce or eliminate your tax burden. Selling sooner rather than later can be a smart financial move.
And remember: inherited homes qualify for long-term capital gains rates even if you owned the home for a short period.
💡 Pro Tip: Talk to a tax advisor before you sell to ensure you maximize your return and minimize your tax liability.
Additional Section 3: Common Mistakes to Avoid When Selling an Inherited House
Inheriting a property comes with emotional, legal, and financial complexity. Many sellers make avoidable mistakes that cost them time and money. Here are the top pitfalls to avoid:
❌ Not Clearing the Title
Inherited properties can come with liens, unresolved mortgage balances, or unclear ownership. Always run a title searchbefore listing the property or accepting an offer.
❌ Ignoring the Probate Process
If the property hasn’t been fully transferred to you through probate, you cannot legally sell it. Skipping this step can delay the sale and even result in legal challenges.
❌ Letting Emotions Drive Decisions
Inherited homes often hold sentimental value, but this shouldn’t prevent you from making smart financial choices. Set clear goals and boundaries with family members early on.
❌ Overinvesting in Repairs
Many people pour money into fixing up the home only to realize they’ve spent more than they’ll get back. If the house needs work, consider selling it as-is to avoid the time and expense.
❌ Waiting Too Long
Vacant homes quickly deteriorate, attract break-ins, and incur monthly costs. The longer you wait, the more you’ll pay in taxes, utilities, and insurance.
At Pegasus Home Buyers, we help Massachusetts homeowners avoid these mistakes by offering a transparent, fair, and fast sale process with no obligations.
Final Thoughts
So, is there a holding period before selling your inherited home in Massachusetts?
Usually, no. As long as probate is complete and you hold clear title, you’re free to sell right away. While there may be tax considerations or outstanding obligations, these typically don’t stop the sale—they just require planning.
If you want a fast, fair, and stress-free way to sell your inherited property, Pegasus Home Buyers is here to help. We specialize in buying inherited houses as-is and can help you skip the hassle.
Want to sell your inherited house in Massachusetts?
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