Selling Property from an Estate: The 3 Most Costly Mistakes We’ve Seen in Our Practice and How to Avoid Them

Mistake 1: Inadequate Preparation

Before an inherited property can be sold, the ownership structure must be clearly established. The certificate of inheritance and the correction of the land registry are particularly important in this regard.

The certificate of inheritance verifies who is legally considered an heir. It is often required if there is no notarized will or inheritance agreement with a probate record.

The land registry amendment is important because the deceased owners are often still listed in the land registry. For the sale to proceed, it must be clear who currently has the right to dispose of the property.

Therefore, the following should be verified early on before the sale begins:

• Is there a certificate of inheritance?
• Is there a notarized will or an inheritance agreement?
• Has the land registry been corrected yet?
• Are all co-heirs known and contactable?
• Are all important property documents available in full?

A few months ago, our firm handled a case involving three siblings who wanted to sell their parents’ home. The decision to sell had already been made, and an interested buyer was also on board. It wasn’t until they were preparing for the notary appointment that they realized the certificate of inheritance hadn’t even been applied for yet, and the property registry was still in their parents’ names. The buyer had financing deadlines to meet and withdrew because the process was delayed by several weeks.

Situations like this cost time, trust, and sometimes even money. That’s why, when dealing with inherited real estate, we check early on which documents are available, which are still missing, and which steps should be taken before putting the property on the market.

Mistake 2: Unrealistic Price Expectations

The value of an inherited property is often perceived very differently. For one co-heir, the house is full of memories; every room tells a story. For another, the priority is a quick settlement, especially if they live far away or the property incurs ongoing expenses.

An objective appraisal brings structure to this discussion. It helps separate personal memories from market-based facts.

The following factors, among others, are important for valuing an inherited property:

• Location of the property
• Lot size
• Living area
• Year of construction
• Condition of the house, roof, facade, and building systems
• Modernizations and Renovations
• Energy Efficiency Ratings
• Floor Plan and Usability
• Micro-location within the residential area
• Current demand in the real estate market

A well-maintained property in a quiet residential neighborhood is valued differently than a house on a busier street or a property in obvious need of renovation. Emotional factors also often play a major role within the family, but they should not be the sole determinant of the asking price.

In a community of heirs, we encountered a situation where one co-heir set a very high asking price because the house had been in the family for decades. Another wanted to sell as quickly as possible and was willing to accept a price significantly below market value. Both positions were understandable but led to deadlocked negotiations.

It was only after a neutral appraisal—including concrete comparable sales, a condition analysis, and a realistic market assessment—that progress was made toward a decision. The market-based real estate appraisal became the common ground on which all parties involved could make fair decisions moving forward.

Mistake 3: Acting Unilaterally and Communication Breakdowns

A community of heirs operates on the principle of joint decision-making. The property is jointly owned by the co-heirs. As a result, individual heirs can generally only initiate key steps in the sale process in consultation with the others.

When selling real estate held by a community of heirs, all co-heirs must usually give their consent, for example regarding:

• the desired selling price
• the selection of the buyer
• price negotiations
• the terms of the contract
• the notary appointment
• the final decision to sell

In practice, this is precisely where friction often arises. In one of our sales cases, a co-heir negotiated independently with a prospective buyer and held out the prospect of a price reduction. The other heirs only found out about this later and felt sidelined. The mood soured, the buyer became uncertain, and the sale was on the verge of falling through.

Such situations rarely arise from malicious intent. Often, someone simply wants to move the process forward. For the other parties involved, however, acting unilaterally can quickly feel like a breach of trust.

Clear communication is therefore crucial. As real estate agents, we serve as the central point of contact in such cases. All co-heirs receive the same information, questions are answered collectively, and decisions are prepared in a transparent manner.

The following approaches, for example, have proven effective:

• joint initial meetings with all co-heirs
• regular sales updates
• transparent documentation of prospective buyers
• coordinated pricing decisions
• Conference calls or video calls
• Clear coordination prior to negotiations

This ensures that the process remains transparent for everyone and that the community of heirs remains capable of taking action.