Selling an Inherited House in Bellingham or Whatcom County: Avoid these 5 Common, Expensive Mistakes

If you just inherited a house in Whatcom County or anywhere in Bellingham, you are probably dealing with grief, paperwork, family pressure, and a house full of belongings that someone you love touched last. On top of that, everyone has a different opinion about what you “should” do. Keep it. Fix it. Rent it. Sell it. Remodel it and “maximize the value.”

This is where a lot of families lose money fast.

As I near my 20th year as a Realtor, more and more of my work is focused on probate and estate property here in Whatcom County. I hold the Certified Probate Real Estate Specialist (CPRES) designation, and I continue to study and refine the legal and practical side of inheritance, senior transition, and estate liquidation. Every month I work with heirs, executors, and personal representatives throughout Bellingham and Whatcom County, and I see the same avoidable mistakes over and over again.

Below are the five mistakes that cost families the most, along with my recommendations for what to do instead.

Before we get into it, please know this. As an estate administrator or executor, you are in a very high-responsibility position at a time you are also likely dealing with a deep loss. You are in a role with potentially significant financial implications. You are allowed to protect yourself.

Mistake #1: Keeping the house out of guilt, even if you cannot afford it

One of the most expensive choices I see is this: “We can’t sell Mom’s house. We just can’t.” So the family hangs onto the property, usually “for now,” while everyone tells themselves they will figure it out later.

Here is what “for now” really means in Whatcom County.

You keep paying property taxes in Whatcom County. You keep paying insurance. You keep paying utilities. If the home is in Sudden Valley or a similar HOA, you are also paying association dues. If the home is older, you are inheriting someone else’s deferred maintenance. Roof, gutters, septic, siding, furnace. None of this is free.

Meanwhile, the home may be sitting vacant. Vacant property is at higher risk for vandalism, squatters, leaks that go unnoticed, or mold in a closed-up house. Let a tree-surrounded cabin sit through one cold, wet Pacific Northwest season without being heated and ventilated, and you can pick up thousands of dollars in damage fast.

I have personally watched inheritances disappear within just a few years because people try to keep assets they cannot comfortably afford to maintain. Hanging on to a property out of guilt can quietly burn through the very inheritance you are trying to honor.

What to do instead: Run the real math in the first 30 days. Not the emotional math. The real monthly cost to keep this property, including taxes, insurance, dues, utilities, minimum maintenance, and any urgent fixes. Then, because this is the Pacific Northwest, add at least 10 percent as a buffer. If those numbers put you in the red, you are not “honoring Mom’s legacy.” You are draining it.

Mistake #2: Planning a remodel before you even understand the current market value or the probable return on investment

This one is huge and incredibly common.

A lot of people inherit a house and instantly think, “We’ll update the kitchen, redo the floors, paint everything, then we’ll get top dollar.” It feels logical. It also gets expensive very fast.

Here is the problem. You are about to spend real money on materials, labor, and time, based on an assumption. You are assuming the market will pay you back, with profit. Many times, it will not.

That is especially true in older Bellingham and Whatcom County homes that have systems, layouts, or foundations from the 70s, 80s, or 90s. You may be imagining a modern open-concept interior, but you are standing in a house with low ceilings, aging plumbing, original windows, popcorn texture, and a septic system that has not been inspected in 15 years. You think you are about to do “a little work.” You are actually about to become a general contractor.

I see adult children, every year, sink tens of thousands of dollars into a house before they even know what it is worth today, as it sits, in the current Whatcom County real estate market. By the time they call me, the money is already gone and the stress level is already high.

The remodeling process also does this. It moves what could have been a “great deal” on the market, at an attractive price point, up into a higher, less desirable price range with a smaller buyer pool. It also takes away the “has potential” appeal that many Bellingham buyers and investors are actively looking for.

What to do instead: Step one is not swinging a hammer. Step one is knowing, “What would this property actually sell for right now, as it sits?” I can walk through and give you that information. I do it all the time. If the “as is” value already gets you where you need to be when selling an inherited house in Bellingham or Whatcom County, you may not need to touch a thing beyond basic emptying, clean-up, and sometimes a professional home inspection so we can share that report with buyers.

Mistake #3: Doing nothing, because you feel overwhelmed

Let me say this clearly. Feeling overwhelmed is normal.

When someone passes, you get hit with three problems at once:

• The physical house, full of belongings.

• The legal and financial process, probate, title, debts, paperwork.

• The emotional layer, grief, memories, and family expectations.

So people stall. They do not call the insurance company to update the status. They do not secure the property. They do not cancel services. They do not collect keys. They do not change the mailing address. They do not do any maintenance. They tell themselves, “We will deal with it after the holidays.” Then, “We will deal with it this summer.” Then, “We will deal with it after things calm down.”

That stall is very expensive.

In real life, “we’re just holding it for now” turns into slow, quiet financial erosion. In plain English, doing nothing is still doing something. It is choosing to carry costs and kick the action plan down the road.

Locally, that can look like:

• Water damage from a small roof leak or plumbing leak that no one noticed for months.

• A break-in at an obviously vacant property.

• Frozen pipes.

• A lender escalating communication on an existing mortgage because nobody is answering.

• A neighbor calling the city about yard overgrowth or junk in the driveway.

What to do instead: You do not have to solve everything. But in the first few weeks, you do have to stabilize it. That means securing the property, documenting its condition, forwarding mail, and understanding the monthly cost picture. I help families with that first pass so they are not trying to do it alone.

Mistake #4: Becoming a landlord by accident

This conversation usually starts like this. “We will just rent it. That way it pays for itself.”

Sometimes that works. A lot of the time, it does not.

Turning an inherited property into a rental in Whatcom County is not just “finding a tenant.” You are now a housing provider in Washington State. You are subject to Washington State landlord tenant law. You are responsible for safety, habitability, and reporting that rental income. You are on the hook to respond to repairs. You are carrying liability if something goes wrong.

It also creates family business partners where there used to be siblings. If three heirs “keep the rental together,” all three of you are now in a long term financial relationship. You just started a partnership. Was that the plan?

There is another layer. If the house is the estate’s only major asset, you are effectively putting the entire inheritance into a single property in one market. If one hundred percent of your inheritance is now tied up in one aging structure in one part of Whatcom County, and you are not prepared to manage that as a real business, you have created stress, not security.

What to do instead: Treat “We’ll rent it” like a real business decision. Get actual rent comps. Get a realistic repair budget to make it safe and compliant. Decide who is on title, who is on call, and who gets to make decisions when something breaks. If you do not like those answers, selling may actually protect the inheritance instead of destroying it.

Mistake #5: Trying to navigate probate, cleanup, upgrades, pricing, legal obligations, and sale by yourself

This is the quiet one, and it is usually the most expensive long term.

Most heirs try to figure this out on their own at first. I understand why. You do not want to feel “sold.” You do not want a pushy agent telling you to list the house tomorrow. You also do not want to feel judged for not having it all handled already.

Here is what usually happens when families try to DIY it. They waste months. They spend money in the wrong places. They argue with each other. Then they call me, late in the process, and hope to unwind what has happened.

One of the most costly patterns I see is waiting to talk to someone who does this work until after you have already spent a chunk of the inheritance. When you are dealing with an inherited property, timing and sequence matter. If you make the first few moves in the right order, you keep control. If you guess, and guess wrong, the process starts running you instead of you running it.

What to do instead: Talk to someone who does this work locally and consistently, not just someone who generally sells houses. My work is focused on probate and estate real estate in Bellingham and Whatcom County. I hold the CPRES designation, I am a former home inspector and general contractor, and I take this work seriously. I sit in these conversations every week. I know the local cleaners, haulers, subcontractors, estate attorneys, senior service providers, Whatcom County resources like Meals on Wheels and the Whatcom Council on Aging (where I serve on the board), and I can tell you quickly which path is realistic for you, not just ideal on paper.

Selling a house in probate in Washington State can feel impossible if you are trying to do it alone. You do not have to do it alone.

Your next step

If you just inherited a property in Whatcom County and you are feeling overwhelmed, you are not alone. You do not have to instantly know whether to keep it, rent it, remodel it, or sell it.

When you contact me for a consultation, I will give you a realistic sale price of your property in its current condition. I will tell you which repairs or upgrades are actually worth doing and which are just money pits. I will lay out your options so you, and your family, can make a calm, careful, informed decision.

Start here: Work With Me

We will talk through the next steps before you spend a dollar, and you can feel good about following a process informed by many others who have gone through this before you.

This article is for general education in Whatcom County and Bellingham. Every estate is different. You should confirm tax and legal questions with your attorney or CPA before you act.

Frequently asked questions about inheriting property in Whatcom County

Q: Do I have to pay capital gains tax if I sell an inherited house in Washington State?

A: In many cases, heirs receive what is called a step-up in basis. In simple terms, the “cost basis” of the property resets to the fair market value at the time of death. That can reduce or even eliminate capital gains on a sale. Every situation is different, so you should confirm this with a tax professional, but this is often more favorable than people expect.

Q: What if my sibling wants to keep the house and I do not?
A: This is extremely common. Yes, there are ways to structure a buyout. The key is to get a real, current market value for the property so the conversation is fair. Then you document who is taking on the future cost and liability. It is much easier to do this before anyone moves in or starts spending money.

Q: Can I sell the house as is, without cleaning it out first?
A: In many cases, yes. I routinely coordinate donation, hauling, basic cleanout, light repairs, light safety work, and listing prep for families who are out of town or already maxed out. You do not have to personally empty every drawer and closet to sell the property.

Q: What happens if there is still a mortgage on the inherited house
A: This is common. It does not mean you are stuck. It does mean someone needs to communicate with the lender soon. The goal is to understand the payoff amount, the status of payments, and any timelines, so you stay in control instead of reacting to pressure.

Q: How fast do I need to make a decision?
A: Faster than “we’ll think about it for a year,” slower than “we have to panic-sell this week.” The right first move is usually stabilizing the property, arranging a free consultation with a probate attorney, contacting me for a real market valuation, and making a plan based on facts instead of guilt, fear, or pressure from relatives. These steps alone will lower the stress level for everyone involved.