Yes, you can sell an inherited home in Michigan — but first someone must have the legal authority to sign. Usually that's the personal representative named by probate court. Once that's in place, an inherited home sells like any other, and thanks to the "stepped-up basis," many heirs owe little or no capital gains tax.

Step 1: Who can sign the sale?

If the home was in the deceased person's name alone, the estate usually goes through Kent County Probate Court, which gives the personal representative "Letters of Authority" to sell. Michigan's small-estate shortcut only goes so far: for deaths in 2026 the limit is $53,000, and if the person owned real estate, the only small-estate option is a court "Assignment of Property" (Michigan Legal Help, 2026). If the home was in a trust, held jointly, or passed by a Lady Bird deed, probate may not be needed — ask an estate attorney.


Step 2: Taxes — the good news

Under IRS rules (26 U.S.C. §1014, Pub. 551), the home's tax basis "steps up" to its value on the date of death. Example: Mom paid $90,000; the house was worth $290,000 when she passed; you sell for $295,000 → taxable gain is about $5,000, not $205,000. Get a date-of-death appraisal. Also call the city assessor about the homestead (PRE) exemption — property taxes can rise once no one lives there as their main home.


Step 3: Seller disclosure

Michigan's Seller Disclosure Act exempts transfers by a nonoccupant fiduciary handling a decedent's estate (MCL 565.953). Exempt doesn't mean "hide things" — share what you know.


Step 4: Sell as-is or fix up?

In Wyoming, MI the median sale price was $299,702 (+3.4% YoY), homes sold in a median 6 days, at 102.1% of list (Redfin, Aug 2026). Demand is strong, so a clean-out, paint and basic repairs often beat a big remodel.

Expert take

"In our families, an inherited house carries a lot of emotion — and sometimes several siblings, some out of state or in another country. Get everyone on the same page early: who signs, who pays the bills meanwhile, and how proceeds are split. Keep insurance active and the furnace on through winter. And ask for a free market analysis before deciding to sell, rent or keep it." — LM Realty

FAQ

Can I sell while the estate is in probate? Yes, once the personal representative has Letters of Authority. Some sales need court approval.
Do I pay capital gains? Only on the gain above the date-of-death value.
What if siblings disagree? Talk to an attorney early; a court can step in, but agreement saves time and money.
Do I have to fix it up? No. Many inherited homes sell as-is.

Ready to talk? LM Realty helps West Michigan families sell inherited homes with care — en español or English. Contact us.