
Selling Inherited Property With Multiple Owners In Washington
Selling your own property is already a difficult undertaking, but selling inherited property with multiple owners, each with their own desires and expectations? Add in the fact that everyone is grieving after the loss of a loved one, and it’s natural if you don’t know how to go about it.
Luckily, Washington has a fairly straightforward procedure for selling inherited property.
What Does It Mean To Inherit A Property With Multiple Owners?

We inherit property from loved ones who have passed away. An inheritance is usually delineated by a will left behind by the deceased for their heirs. However, if the passing was sudden and a will was not made, then Washington state laws will govern the distribution process of all assets and properties. Succession laws will decide who inherits what.
In both cases, regardless of whether you inherit a property testate (with a will) or intestate (without a will), it’s possible to inherit a property with multiple people. When several people inherit a property, they become co-owners and typically have equal rights to the property; however, there are also cases where co-owners may not have an equal share of the property.
For example, if a spouse dies intestate, without any children, three-quarters of the property will go to the surviving spouse while the rest will go to the parents of the deceased.
On the other hand, if a parent dies testate, it’s common for siblings to inherit a single property, usually their family home. In the case of the latter, then.
First Things First: Decide What To Do With The Property.
Everyone needs to come together and agree on what to do with the house. During your discussion with other co-owners, you have three options: live in it, rent it out, or sell the property and divvy up the proceeds. Let’s consider each option:
Living in a home with multiple owners may be difficult, so this is the least likely choice.
Renting could be an option that may prove to be divisive. Some may want it, but others may be against it, as the property could serve as a reminder of their loss.
Selling the property, then, sounds like the simplest choice for everyone involved.
If You Go This Route, There Are Three Possible Scenarios That Could Happen:

Scenario 1: You Come To An Agreement.
This is your best case scenario where each person agrees to sell the property. Once this happens, the next thing you need to agree on is how the money will be split. It can be equally shared or distributed in proportion to each person’s claim on the property.
Scenario 2: Buy Out The Other Owners.
If there is no consensus with regards to the sale you can offer to buy them out. However, this can turn expensive quickly since you will need to pay out of pocket or take out a loan. You should weigh this initial investment cost against the potential pay out from the sale.
To figure out how much you’d have to shell out, find out the value of the house by hiring an appraiser. You must also take into account possible liens against the property. After crunching these numbers, and depending on how you split the property, you’ll have your price.
Needless to say, this option will require some negotiation skills.
Scenario 3: You Don’t Come To A Consensus And File A Partition Action.

If the co-owners are mired in conflict and even refuse to talk to each other, then sometimes the only option is to go nuclear by filing a partition action.
A partition action is a civil lawsuit that can be filed by a co-owner of a property against the other co-owners. You should hope that you don’t come to this as this is the worst-case scenario.
Since there is no way to literally divide the property among yourselves, the judge will order a partition by sale. Where the property will be sold through an open market, sealed bids, or at an auction.
Fortunately, at present, the court has preferred to sell through the open market. With selling through the open market, you typically get a better price for the house.
However, if the house isn’t sold in the time frame given by the judge, they could decide to give an extension or have it auctioned where it typically sells for a lower price.
You can talk to your attorney if a partition action is beneficial, as the court could also cover some expenses such as attorney’s fees, mortgage payments, and other costs. However, always be prepared to take on these additional costs, as nothing is guaranteed.
Take It Outside Of Court!
At the end of the day, with a partition action, you are taking family members to court–an act that can cause irreparable damage to your relationship with each other.
To avoid this, it would be best to talk to your probate attorney to help with the discussions since coming to an agreement outside of court is still recommended. In this way, everyone saves time and money on court hearings, and most importantly, your bond with each other is kept intact.
Things To Keep In Mind When Selling An Inherited Property

Get a Mediator Involved
A great tip to consider is hiring a mediator to help keep the conversation going smoothly. If you know that your relationship is strained with the other co-owners of the property, involving a mediator just may be the way to avoid the problem.
Get Everything In Writing
A death in the family is an immensely emotional time for everyone involved. Since everyone’s emotions are so close to the surface, they may not be able to think properly at the moment.
They could be agreeable now, but that doesn’t mean they would always be that way in the future. Since selling a house with multiple owners is a legal and financial matter, it’s best that everything’s on black and white reducing the chance for possible future conflicts.
How To Do Title Transfer In Washington
Before you can sell the house, your name and those of your co-owners must be transferred into the title.
This can be done in three ways:

Living Trust
A living trust is set up and in effect, before a person dies. It enables the owner, or the trustor, to keep and manage their assets within a trust while they are alive. It also outlines which assets will be transferred to the trustee after the trustor’s death.
This is a good option for estate planning as it avoids probate. However, it costs more and is more complex than a will.
Death Deed
A death deed is a legal document which states that a property, upon one’s death, would be transferred to a designated beneficiary. This is not a very popular option because you cannot specifically dictate how you want your property to be transferred to your beneficiaries. For example, if one of your beneficiaries dies before you, their share will be null and the surviving beneficiary will receive the whole property.
Like a living trust, a death deed is also a way to avoid probate.
Probate

Most properties go through probate. This process happens in court, where they authenticate the will and oversee the distribution of the assets and properties of the deceased after taking into account all the mortgages, liens, and debts the deceased may have had. These creditors will be paid first. Afterward, all the necessary taxes will be paid. A good thing to note is that Washington does not have an inheritance tax, only an estate tax. Once these are taken care of, the transfer of ownership can commence.
During probate, an executor will be assigned in accordance with the will. If there’s no will, the judge will appoint one, usually a family member close to the deceased. The executor will be in charge of following the will, including liquidating some assets to pay off any outstanding debts that the deceased may have had.
The Probate Process
Many people dread the probate system because it can be costly and time-consuming. But, with a properly outlined will, the probate process in Washington state is straightforward. Washington also gets bonus points because the cost of probate does not depend on the value of the estate; rather, it has a fixed cost.
Before starting the probate process, you will first need to gather these documents:

- The Original Will
- Copy Of The Death Certificate
- Names And Addresses Of The Family Members And Those Mentioned In The Will
Summarized Probate Process
To get the process started, your attorney will file a petition for probate. Once the court opens probate, an executor will be named in accordance with the will. Afterwards, the executor will notify all family members, all the other individuals listed in the will, and the Department of Social and Health Services (DSHS) about their appointment. Next, the executor will gather all the assets and take them into account to prepare the estate inventory and its appraisal. Before the assets are distributed to the beneficiaries, all the liens and claims against the decedent’s estate will first be settled. Finally, once the distribution is complete, the probate will be closed.
Related Real Estate Articles
- Selling Parents Home To Pay For Care in Washington
- How to Sell a House In Probate in Washington State
- How Much Does an Estate Have to Be Worth to Go to Probate in Washington?
- Do All Heirs Have To Agree To Sell Property In Washington?
- Selling Inherited Property With Multiple Heirs in WA
- What Happens if a House Goes into Foreclosure During Probate?
Preparing To Sell The Inherited House

Once probate is over and done with, you and your co-owners can now do with the property as you wish. If you all decide to sell, selling an inherited house is just similar to selling the traditional way.
Pack Up Personal Belongings
This may be the hardest part of selling an inherited house. You need to pick through all the belongings in the house and pack up everything.
To help streamline the process, you can box up the items in categories such as those you want to keep, throw, sell, or give to charity. This can be difficult for many people since some items have sentimental value and serve as reminders of the deceased.
Hire An Inspector
It’s important to hire a professional home inspector to take a look at the property. You’ve only just inherited the house and probably haven’t lived there for a while, so you may not be familiar with its issues. An inspection will pinpoint which parts need repair or assure you that the house is in great condition. The inspection report is also valuable in determining the value of the inherited home.

Decide On The Repairs Or Upgrades
If the house has issues with their crawl space, wiring, roofing, and plumbing–these are priority issues that have to be fixed if you want the house to be move-in ready.
If you want to command a higher asking price, you can consider renovating. These are important decisions to make with your other co-owners as you will initially have to shell out money for these upgrades. Not all upgrades can affect the selling price so do your research to learn about trendy upgrades which can elevate your home’s market value.
Appraise The House
To get an accurate market value estimate of your inherited property, consider hiring an appraiser. They will account for the home’s size, condition, age, and the results of the inspection, as well as the comps in coming up with the value.
You can go online to check the current property listings in your neighbourhood to get an approximation of your home’s asking price.
Do You Need To Pay Taxes In Washington To Sell Your House?

Yes, because Washington has a real estate excise tax (REET).
While Washington does not have a personal income tax or capital gains tax, you still need to pay REET.
REET is between 1%-3% of the selling price. Aside from the REET, you also need to pay your municipality’s REET, which is about .25%-.50%.
On top of all these, you need to pay the standard federal capital gains tax between 15%-37%. Do note that this is only if your house has appreciated in value. Otherwise, it is possible to owe nothing.
Closing Thoughts: Selling Your Inherited House With Multiple Owners
If you all vote to sell, it should be done sooner rather than later. This is because property holding costs, which include utilities, HOA fees, property taxes, and the like, add up quickly and may put a financial burden on you and your fellow heirs.
And when selling fast is your priority, you need to sell to a real estate investor. When selling to this type of buyer, there are plenty of advantages:
- You don’t have to do any repairs;
- You don’t have to do any stagings or showings;
- You don’t have to pay commissions, unlike when selling with a real estate agent, and, most of all,
- You get instant cash, and you don’t have to wait a long time to close!
Sounds great, right?
Here at Kind House Buyers, we can help you achieve all that. We have been in the business long enough and have perfected and simplified our home-buying process. We can get your property out of the market in just seven days, and there’s no need to think about closing costs – it’s on us!
Fill in our form below for a quick, no-obligation cash offer delivered straight to your inbox.
Read on to explore the steps involved in selling a home in Washington. These guidelines are relevant statewide, covering cities like Seattle, Tacoma, Spokane, Yakima, Vancouver, Bellingham, and their surrounding areas. For more personalized help, reach out to us at (253) 216-2497 . Look for Keith or Krixelle, and we’d love to chat!

Author: Keith Sant
Keith Sant is a real estate investor and entrepreneur who enjoys helping others by sharing useful real estate information. Keith’s goal is to educate home sellers so they can make the best decisions for their real estate problems. When Keith is not working, he enjoys cycling and traveling with his wife, Krixelle.
He has been featured on numerous new and real estate platforms, including Zillow, HomeLight, Better Homes & Gardens, Realtor.com, MSN, and Yahoo Finance.