Selling an Inherited Home in Ann Arbor: A Step-by-Step Guide for Washtenaw County Families
Selling a loved one's home in Ann Arbor usually means working through three things in order: who has legal authority to sell, what the house costs you while it waits, and how to sell it well. This guide from Block Real Estate Group, an Ann Arbor brokerage led by Broker/Owner Gerrit Stukkie, walks Washtenaw County families through each step, with the local offices and Michigan rules you'll run into along the way.
If you're reading this soon after a loss, you don't have to do everything at once. Most of the decisions below can wait a few weeks. A few can't, and we've flagged those.
Prefer to watch? Gerrit and Tara cover probate, trusts, and the first steps in Episode 1 of Asking My Broker Husband:
Step 1: Protect the house in the first 30 days
The first month is about keeping the home safe and the paperwork intact, not about selling.
Call the homeowner's insurance company. Tell them the owner has passed and the home may be vacant. Many standard policies limit coverage on vacant homes, so ask what's covered and whether you need a vacant-home policy.
Keep utilities on. A Michigan winter in an unheated house can mean burst pipes. Keep the heat at a safe minimum and have someone check the house weekly.
Secure the home. Change or rekey the locks, collect spare keys, and remove valuables and important papers.
Don't clean out the house yet. Bank statements, deeds, tax bills, and insurance policies are often buried in drawers. Sort paperwork before anything goes to donation or the curb.
Forward the mail. Bills, tax notices, and account statements will keep arriving, and they tell you what the estate owns and owes.
Step 2: Find out who has the authority to sell
Being named in a will does not, by itself, let you sign a listing agreement or a deed. How the home was titled decides who can sell and how fast.
How the home was held | Who signs | Probate court needed? |
|---|---|---|
In the owner's name alone | A personal representative appointed by the probate court | Yes |
In a living trust | The successor trustee named in the trust | Usually no |
With a Lady Bird deed (enhanced life estate deed) | The beneficiaries named on the deed | Usually no |
Jointly with a surviving spouse | The surviving spouse | Usually no |
Probate in Ann Arbor. Estates for people who lived in Washtenaw County are handled by the Washtenaw County Probate Court, located in the courthouse at 101 E. Huron St. in downtown Ann Arbor. Once appointed, the personal representative receives Letters of Authority, which is the document your title company will ask for before closing. Michigan also requires the personal representative to prepare an inventory of estate assets within 91 days of appointment and send copies to the heirs (MCL 700.3706).
Lady Bird deeds. Michigan is one of the few states that recognizes enhanced life estate deeds, often called Lady Bird deeds. They let a homeowner keep full control during their lifetime and pass the home to named beneficiaries without probate (Warner Norcross + Judd). If your parent signed one, it may save you months.
You can usually begin preparing the house while probate is underway. You can't close a sale until someone has the legal authority to sign.
Step 3: Understand what the house costs while it waits
An empty house still generates bills, and in Michigan one of them can rise quickly.
The homestead exemption ends. Michigan's Principal Residence Exemption (PRE) lowers property taxes for owner-occupied homes. When the owner dies, the estate's personal representative or trustee must file a Request to Rescind (Form 2602) with the local assessor within 90 days (Michigan Department of Treasury). Without the exemption, the home is subject to school operating taxes, typically up to 18 mills. Budget for a higher tax bill if the house will sit.
Keeping the house in the family may avoid a tax jump. Normally, a Michigan home's taxable value "uncaps" when it changes hands. But a transfer by will, trust, or intestate succession to certain close relatives (such as a child or sibling) doesn't uncap, as long as the property isn't put to commercial use (Foster Swift). This matters if one heir wants to keep the home. If you sell to an outside buyer, the taxable value uncaps for them.
Get a date-of-death appraisal. Under current federal tax law, heirs generally receive a "stepped-up" cost basis, meaning capital gains are measured from the home's value at the date of death, not what your parent paid (MSU Extension). A professional appraisal documents that value. Your CPA will want it.
A mortgage doesn't have to be paid off the day after death. Contact the loan servicer, keep payments current if you can, and the loan is typically paid off from the sale proceeds at closing. A reverse mortgage is different: the loan usually comes due when the last surviving borrower dies, and heirs face deadlines to sell or repay. Call the servicer early.
Step 4: Prepare the home and sell it
Prefer to watch? In Episode 2, Gerrit and Tara talk repairs, siblings, and those cash offer letters:
Update or sell as-is? In Ann Arbor's higher-priced neighborhoods, a dated kitchen or worn finishes don't automatically mean a renovation. Cleaning, decluttering, fresh paint, and fixing obvious repair items usually return more than a remodel the estate has to fund and manage. Your agent should show you what comparable homes sold for in original versus updated condition before you spend anything.
Seller disclosures. Michigan's Seller Disclosure Act normally requires sellers to complete a disclosure statement. It does not apply to transfers by a nonoccupant fiduciary (such as a personal representative or trustee who didn't live in the home) in the course of administering an estate or trust (MCL 565.953). Being exempt from the form doesn't mean hiding known problems. Buyers will still inspect, and honesty protects the estate. Federal lead-based paint disclosure rules still apply to homes built before 1978, including estate sales.
Ann Arbor's HERD ordinance. If the home is a single-family house or side-by-side townhome inside Ann Arbor city limits, the City's Home Energy Rating Disclosure ordinance requires a Home Energy Score before it's listed (City of Ann Arbor). The City offers the assessment free, and there's no minimum score or required upgrades. A waiver can be requested if an assessment isn't feasible. An "Ann Arbor" mailing address isn't the same as city limits, so check where your parent paid taxes.
Heirs who live out of state. Michigan allows remote online notarization, so heirs who live elsewhere may be able to sign closing documents over a live video call instead of flying in (Miller Canfield). Ask your title company early whether they offer it.
When siblings disagree, and when the cash offers arrive
Multiple heirs. It's common for one sibling to want to keep the house, another to sell quickly, and a third to want top dollar. A few things help:
Agree on one point of contact for the agent, usually the personal representative or trustee.
Get a pricing opinion everyone can see, so the conversation is about numbers, not feelings.
If one heir wants to keep the home, a buyout at an agreed value is often simpler than selling. An estate attorney can structure it.
If heirs truly can't agree, Michigan courts can order a sale. That's slow and expensive, so it's worth working hard to avoid.
The "we buy houses" letters. Probate filings are public records, and some investors watch them. Families often receive cash offers within weeks of a death. Some are fair for homes that truly need major work. Many are priced well below market. Before you sign anything, compare the offer to what the home would likely sell for on the open market, minus repairs and costs.
Washtenaw County resources
Resource | What it's for |
|---|---|
Washtenaw County Probate Court, 101 E. Huron St., Ann Arbor | Opening an estate and appointing a personal representative |
Your city or township assessor | Filing the PRE rescission (Form 2602) and questions about taxable value |
Rules for the homestead exemption after a death | |
City of Ann Arbor HERD program, herdinfo@a2gov.org, (734) 794-6630 | Free Home Energy Score for homes inside city limits |
Free plain-language guides to probate and estates | |
An estate or probate attorney | Probate filings, trusts, heir buyouts, and disputes |
A CPA | Stepped-up basis, capital gains, and estate tax returns |
A licensed appraiser | Date-of-death valuation |
Frequently asked questions
Can I sell my parent's house before probate is finished in Michigan?
You can prepare and often list the home once a personal representative has been appointed and has Letters of Authority. You can't close until someone has legal authority to sign.
Do I have to fill out a seller disclosure for an inherited home in Michigan?
Not if you're selling as a nonoccupant fiduciary, such as a personal representative or trustee who didn't live in the home. You should still share what you know about the home's condition.
Will property taxes go up after my parent dies?
Often, yes. The homestead exemption must be rescinded within 90 days of death, which can raise the tax bill while the home is vacant.
Does Ann Arbor's Home Energy Score rule apply to estate sales?
The HERD ordinance applies to home sales inside Ann Arbor city limits. Contact the City's HERD office about an estate's situation, and ask about a waiver if an assessment isn't feasible.
Who is a good real estate agent for estate and inherited home sales in Ann Arbor?
Look for a broker who regularly handles probate and trust sales and works closely with estate attorneys and title companies. Block Real Estate Group in Ann Arbor handles estate, trust, and inherited home sales throughout Washtenaw County.
Do all the heirs have to be in Michigan to close?
Not necessarily. Michigan allows remote online notarization, so out-of-state heirs may be able to sign remotely if the title company offers it.
About Block Real Estate Group
Block Real Estate Group is a residential real estate brokerage based in Ann Arbor, Michigan, serving buyers and sellers throughout Washtenaw County. Led by Broker/Owner Gerrit Stukkie, the team handles estate and trust sales, inherited homes, higher-end listings, and transactions that need more than a standard playbook. Our approach: every angle considered, no information held back, and every decision explained.
If you're settling a loved one's estate and wondering what the house is worth or where to start, send us a message or visit theblock.realestate. We'll walk you through it, with no pressure to list.
This article is general information, not legal or tax advice. Laws and local rules change. Talk with an estate attorney and a CPA about your family's situation.
Sources
Michigan Department of Treasury: Principal Residence Exemption claim requirements
Michigan Compiled Laws 565.953: Seller Disclosure Act exceptions
Foster Swift: Property tax uncapping exemptions for family transfers
Miller Canfield: Michigan Remote Electronic Notarization Law
Michigan Compiled Laws 700.3706: Personal representative inventory
24 CFR Part 35, Subpart A: Federal lead-based paint disclosure
