Selling an inherited commercial property

Start with what it’s worth

Commercial buildings are priced on their income, not on nearby house sales. You need three things: the rent each tenant pays, the yearly property tax bill, and the other costs of running the building. If you don’t have them yet, the leases, the last tax bill and the bank statements usually show them. How commercial property is valued.

Many heirs find the rents are below market, or that a tenant has no written lease at all. That’s common in buildings a parent owned for decades, and it doesn’t stop a sale.

Confirm who can sign

• In probate: the executor or administrator signs once the court gives them authority to sell.
• In a trust: the trustee usually signs, following the trust’s terms.
• In an LLC or partnership: the operating agreement says who can sell.
• Owned by several heirs together: every owner normally has to agree. When they can’t, many states let an owner ask a court to order a sale, which is slow and costly.

Probate and co-ownership rules vary by state. The estate’s attorney is the right person to confirm who signs and when.

Check the taxes before you sell

In most cases, inherited property gets a stepped-up basis: its tax basis resets to its market value on the date of death. If you sell soon after inheriting, there may be little capital gain to tax. There are exceptions, and some states reassess property taxes after a transfer, so ask a CPA before you sign anything.

What happens to the tenants

The leases transfer with the building. Tenants keep their space on the same terms, and nobody has to move out because of the sale. We don’t contact tenants until you say so.

Listing it vs. selling it directly

Listing with a broker can bring a higher price when the building is in good shape, fully leased and the family can wait. It also means a commission, usually 3 to 6%, showings, repair requests after inspection, and months on the market.

A direct sale trades some of that upside for certainty: no commission, no repairs, no showings, and a closing date set around the estate. Families often choose it when the heirs live far away, can’t agree on who would manage the building, or need to settle the estate.

How we work with estates

• One clear number with the math shown, so every heir sees the same thing.
• We work with executors, trustees, co-owners and the estate’s attorney.
• We can agree on a price while probate is still open and close once the estate can sign.
• We buy as-is. Nothing to clean out, fix or lease up first.