Inherited a House in Colorado? A Step-by-Step Guide to Your Options for Selling

When someone calls me about a house they inherited, it’s usually an adult who lives out of state, or who hasn’t seen the house in a while. They’re worried about the condition it’s in. They’re worried about what the next steps are and what they’re supposed to do. And they’re worried about managing the whole process. It’s often overwhelming.

If that sounds like you, you’re not behind and you’re not doing it wrong. The steps follow a pretty steady order. Below is what happens in Colorado, what to check first, and the ways people sell.

General information only, not legal or tax advice. Every estate is different. Where it matters, check with the county court, a probate attorney or a tax professional.

Step 1: Find out how the house is titled

Everything depends on whose name is on the deed and how it was held.

• Owned only by the person who died, with no beneficiary deed or trust: the house generally goes through probate before it can be sold.
• Held in joint tenancy: it usually passes directly to the surviving owner.
• Held in a trust that actually owns the house: the trustee typically handles it under the trust’s terms.
• Covered by a recorded beneficiary deed (Colorado’s transfer-on-death deed): title can pass to the named beneficiary without probate, but only if the deed was signed and recorded before the owner’s death. A beneficiary deed doesn’t remove creditors’ claims, and other assets may still need probate. (Colorado statutes, C.R.S. § 15-15-401 et seq.)

A trust document that exists on paper but never took title to the house doesn’t avoid probate for that house. Check the recorded deed at the county clerk and recorder’s office to see what’s actually on record.

Step 2: Understand probate in plain terms

Probate is the court process that decides who has the authority to handle a person’s estate. Colorado has a simpler “small estate” route for some assets, but it generally doesn’t cover real estate. So if the house was in the deceased person’s name alone, expect probate. The small-estate dollar limit changes over time, so get the current number from the Colorado Judicial Branch, not from a blog. (Denver Bar Association: Probate in Colorado, Nolo: Colorado probate shortcuts)

How long does probate take? Nobody agrees on a number. Some sources say about nine months to two years, others say closer to a year. It depends on how complicated the estate is, whether anyone contests it, and how busy the court is. Treat any figure as a rough guess and ask the court clerk or a probate attorney about your county. (J. Baker Law Group: how long probate takes in Colorado)

In a probate case, the court usually appoints a personal representative who has legal authority to manage the estate, including selling the house. Buyers and title companies will typically ask for proof of that authority before closing. Until it’s in place, nobody can sign a deed to sell.

The thing that slows an inherited sale down most is that nobody has the legal authority to sign yet, because probate hasn’t been opened or the title isn’t clear. Next is heirs who don’t agree on whether to sell. After that come the loose ends attached to the house, like an unpaid mortgage balance or back property taxes. Sorting those out first saves weeks.

A rough timeline (estimates, not promises)

Every estate moves at its own speed, but the order is usually like this:

1. First few weeks. Get certified copies of the death certificate. Find the will, if there is one. Keep the house safe: insurance, utilities, locks, someone checking in.
2. Open probate. Someone applies to the court to open the estate and to be appointed personal representative. For many estates this is done through informal probate, which is generally available if three years or less have passed since the death. (C.R.S. § 15-12-301)
3. Authority in hand. Once the court appoints a personal representative, that person has the authority a title company will ask to see. A personal representative can use the powers in Colorado’s Fiduciaries’ Powers Act, which can be limited by the will or by a court order. Court approval isn’t automatically required to sell. (C.R.S. § 15-12-715)
4. Notice to creditors. The personal representative publishes a notice three times over three weeks. The deadline for creditors to file claims must be at least four months after the first publication. Known creditors also get a separate written notice. (C.R.S. § 15-12-801)
5. Sale and closing. With authority in place, the house can be listed or sold as-is. Mortgage, liens and taxes are paid from the proceeds at closing, and the rest goes to the estate.
6. Distribution and wrap-up. After debts and claims are handled, what’s left is distributed to the heirs and the estate is closed.

How long all of that takes depends on the estate. Plan for months, not weeks, and ask a probate attorney or the court clerk for a realistic range for your county.

Step 3: Deal with what’s attached to the house

Before you decide how to sell, list what the house owes or costs:

• A mortgage or reverse mortgage. The balance is usually paid from the sale proceeds at closing. Your lender can provide a payoff amount. If payments have stopped, see our page on avoiding foreclosure.
• Property taxes, liens or HOA dues. These are normally settled at closing, and a title company can show what’s recorded against the property.
• Ongoing costs. Utilities, insurance, lawn care and repairs keep adding up while the house sits, so it helps to decide on a timeline early.

Documents to gather before you talk to a buyer, agent or title company:

• A certified copy of the death certificate
• The recorded deed (from the county clerk and recorder)
• Proof of your authority to act (court paperwork if probate is open)
• Latest mortgage statement, property tax statement and HOA statement, if any
• Homeowner’s insurance policy and utility account details
• Any appraisal, inspection report or repair estimates you already have

What to budget for

Costs are one of the most common surprises. Here are the main ones in Colorado and who usually pays them. We’re listing them without dollar amounts on purpose, because they change by county and by sale. Ask the title company for a settlement estimate before you agree to anything.

Costs of the probate itself (paid by the estate)

• Court filing fees. The amount is set by the Colorado Judicial Branch and changes. Check the current fee schedule instead of trusting a figure from a blog.
• Attorney fees. Rates vary a lot. Get a quote up front and ask what’s included.
• Personal representative pay. Colorado doesn’t set a fixed rate. The personal representative is entitled to reasonable compensation for the work, and some choose to waive it.
• Publication costs. The notice to creditors has to be published in a newspaper (see the timeline).

Costs of selling the house

• Agent commission, if you list. It’s negotiable, so ask.
• Repairs and cleaning out, if you want the best price on the open market. Selling as-is trades some of that price for skipping this cost and the time it takes.
• Closing costs and title fees. Which ones are yours is set in the sales contract.
• Documentary fee. Colorado has no statewide transfer tax. It has a small documentary fee, charged at one cent per $100 of the sale price and collected by the county clerk and recorder when the deed is recorded. Who ends up paying it is set in the sales contract. (C.R.S. § 39-13-102)
• Recording fees. The county charges these to record the deed. They vary by county.
• City or local transfer taxes. A small number of Colorado cities add their own. Check whether yours does before you close.

Costs of holding the house while you decide

• Insurance, utilities, property taxes, lawn and snow care, and any HOA dues. These keep running every month until the house sells, so they’re worth adding up. The longer the process, the more they matter.

The number that matters: not the sale price, but what’s left after all of the above. Two offers that look far apart can end up closer than you’d think once repairs, fees and months of carrying costs are counted.

Step 4: Know the tax basics

• Colorado has no inheritance tax and no state estate tax. A federal estate tax exists but applies only to very large estates. (Dechtman Wealth: Colorado inheritance tax laws)
• Stepped-up basis. For many inherited homes, the tax basis is adjusted to the house’s value on the date of death. If you sell soon afterward for about that amount, there may be little or no taxable gain. A date-of-death appraisal is the usual way to document that value. (Colorado Bar Association: Step-up in basis (PDF))
• Rental income and later gains are taxed differently, so ask a tax professional about your situation.

Step 5: Compare your options for selling

There isn’t one right answer. Each option trades price against speed and effort:

Option	What it usually means
Keep it	You pay ongoing costs, may need to update it, and may rent it or move in.
List with an agent	Often the highest price, but you handle repairs, cleaning out, showings and a timeline you can’t fully control. A listing agent’s fee comes out of the proceeds.
Sell as-is to a buyer	You skip repairs and cleaning, and can choose a closing date. Offers are usually below what a fully repaired, listed house might bring, so compare.
Sell with other heirs	All owners must agree, or the court may need to get involved. Open communication early saves time.

To see what a quick as-is sale looks like in numbers, you can request a no-obligation cash offer and put it next to an agent’s estimate and the cost of repairs. Plenty of heirs get both before they decide.

An example (a made-up scenario for illustration, not a specific client). Say two siblings inherit their mother’s house in Colorado. One lives in another state, the other lives two hours away, and neither has been inside in a year. The house needs a new roof, there’s a small mortgage left, and no one has opened probate yet. One sibling wants to keep it and the other wants out. The first thing they need is the legal authority to act, so they talk to a probate attorney and get the estate opened. Then they collect two numbers: what an agent thinks it would list for after repairs, and what a buyer would pay as-is. Seeing both side by side usually settles the argument, because they’re finally comparing real choices instead of guessing. The question to ask before choosing is not “what’s the highest price?” but “what will I actually net after repairs, fees, carrying costs and the time this takes?”

Step 6: If more than one person inherits

Splitting a house between siblings or other heirs is where a lot of sales stall, and it’s rarely about money alone. A few things that help:

• Talk before you do anything else. Find out early who wants to keep it, who wants to sell and who just wants it over with. It’s easier to solve before anyone has hired a lawyer.
• Pick one point person. If there’s a personal representative, that’s usually who deals with the court, the title company and buyers. Everyone else gets updates in writing.
• Get the facts in front of everyone. Share the same numbers with every heir: an estimate of the house’s value, the cost of repairs, the mortgage payoff, and what it costs each month to carry the house.
• Put any agreement in writing. If one heir wants to buy the others out, or everyone agrees to sell, write it down and have an attorney look it over.
• Consider a neutral third party. A mediator can help when the disagreement is more about family than about the house.

If the heirs truly can’t agree, Colorado has a court process called partition, and anyone with an interest in the property can ask a court for it. (C.R.S. § 38-28-101) The court generally prefers dividing the property when that’s workable, and a house usually can’t be split, so it may order a sale if dividing it would cause real unfairness to the owners. After a court-ordered sale, liens and fees come out first and the remainder is divided among the owners. It takes time and money, which is why most people try everything else first. Co-owners can also agree in writing not to partition, so check any agreement you’ve signed. (C.R.S. § 38-28-107, Colorado Lawyer: Partition)

Common questions

Do I have to clean out the house before selling? Not necessarily. Many heirs sell as-is, including belongings that are left. If you list with an agent, a clean-out is usually part of preparing the house.

What if the heirs disagree? Once the house is owned by several people, they generally all have to agree to sell, or a court may be asked to decide through a partition action. Talking early, sometimes with an attorney or mediator, usually works out better. See Step 6 above.

How long does it take? It depends on whether probate is needed and how complicated the estate is. Ask the court clerk or a probate attorney for a realistic timeline for your situation.

Can I sell before probate is finished? Often yes, once a personal representative has been appointed. You don’t always have to wait for the whole estate to close, but the person selling needs proof of authority, and a will or court order can add limits. A title company can tell you what it will require.

Where to start this week

1. Pull the recorded deed and see how the house is titled.
2. Find out if a probate case exists for the estate, or needs to be opened, in the county where the house sits.
3. Collect the mortgage, tax and HOA paperwork.
4. Decide how fast you need to sell and how long you can afford to carry the house.
5. Get two ways of selling in front of you before you choose.

Free download: Inherited House in Colorado Checklist (PDF). Print it, check things off, and bring it to your first call with the court, a title company or an attorney.

If you’ve inherited a house in Loveland, Wheat Ridge, Littleton or elsewhere in Colorado and want to see what an as-is offer could look like, you can request a no-obligation cash offer.

Related guide: selling a house in probate in Colorado, covering who can sign, court approval and the timeline.