What to Do With Your Parents' House When They’re Gone

From the Tyler Goff Group – Your Sioux Falls Real Estate Experts

Losing a parent is one of life’s most difficult experiences. Along with the emotional impact often comes the responsibility of deciding what to do with their home—a process that can feel overwhelming, especially while grieving.

For many families in Sioux Falls, an inherited house represents far more than just real estate. It may hold decades of memories, financial considerations, family discussions, and practical decisions that all need to be handled carefully.

At the Tyler Goff Group, we understand that selling or managing a parent’s home is different from a typical real estate transaction. Whether you’re considering selling, renting, renovating, or keeping the property in the family, here are important steps and considerations to help guide the process.

1. Give Yourself Time Before Making Major Decisions

One of the biggest mistakes families make is rushing into a decision too quickly. Unless there are urgent financial pressures, it’s often wise to take a step back and evaluate your options carefully.

An inherited home can trigger strong emotions, especially if:

• Multiple siblings are involved
• The home has been in the family for decades
• There are disagreements about next steps
• Significant repairs or updates are needed

Taking time to gather information and communicate openly can prevent unnecessary stress later.

2. Understand the Legal and Financial Situation

Before deciding what to do with the property, clarify:

• Whether the home is in probate
• Who legally owns the property
• Whether there is a mortgage or liens
• What ongoing expenses exist (taxes, utilities, insurance)

In South Dakota, inherited property may go through probate depending on how ownership was structured. Working with an estate attorney or financial advisor can help simplify the process and avoid complications.

It’s also important to understand potential tax implications, including:

• Capital gains considerations
• Step-up in basis rules
• Estate-related expenses

These factors can influence whether selling, holding, or renting the home makes the most financial sense.

3. Decide Whether to Sell, Keep, or Rent the Property

Every family’s situation is different. Here are the most common options:

Selling the Home

For many families, selling is the most practical solution. It can:

• Simplify estate settlement
• Eliminate ongoing maintenance costs
• Divide proceeds among heirs
• Prevent future disputes over ownership

In today’s Sioux Falls market, inherited homes can still attract strong buyer interest—even if updates are needed—especially when priced and marketed strategically.

Keeping the Home in the Family

Some families choose to keep the property for sentimental reasons or future use.

This may make sense if:

• A family member plans to live there
• The property has long-term appreciation potential
• The home can serve as a future investment property

However, it’s important to discuss:

• Shared maintenance responsibilities
• Future ownership arrangements
• Financial contributions among heirs

Clear expectations upfront can help preserve family relationships.

Converting the Home Into a Rental Property

Some inherited homes can become strong long-term investments.

With Sioux Falls continuing to grow, rental demand remains solid in many neighborhoods. Turning the property into a rental may provide:

• Ongoing monthly income
• Long-term appreciation
• Tax advantages in some cases

That said, becoming a landlord also means taking on:

• Maintenance responsibilities
• Tenant management
• Property taxes and insurance
• Vacancy risk

Before choosing this path, it’s wise to evaluate the home’s condition, location, and expected rental income.

4. Evaluate the Home’s Condition Realistically

Many inherited homes need updates before listing or renting.

Common issues include:

• Outdated kitchens or bathrooms
• Deferred maintenance
• Aging HVAC or roofing systems
• Clutter and accumulated belongings

The good news is that not every home requires a full renovation before selling. In many cases, strategic improvements—such as decluttering, cleaning, paint, landscaping, or minor repairs—can dramatically improve value without major investment.

At the Tyler Goff Group, we help families determine:

• Which updates are worth doing
• Which repairs buyers will overlook
• How to maximize value without overspending

Check out the most common repairs and best kitchen, bathroom and curb appeal projects to help sell the home.

5. Organize and Sort Belongings Carefully

Sorting through a parent’s belongings is often one of the most emotional parts of the process.

A helpful approach is to:

• Start with important documents and valuables
• Allow family members time to choose meaningful items
• Donate or sell items gradually
• Avoid trying to do everything in one weekend

Many families also benefit from working with:

• Estate sale companies
• Professional organizers
• Junk removal services

Reducing the emotional and physical workload can make the process more manageable.

6. Understand Current Sioux Falls Market Conditions

Before making a decision, it helps to understand the current local market.

In Sioux Falls:

• Well-priced homes continue attracting strong interest
• Updated homes typically sell faster
• Entry-level and mid-range homes often remain in demand
• Investors may seek homes with renovation potential

Even inherited homes needing cosmetic updates may receive strong offers due to limited inventory in certain price ranges.

This is why working with a local real estate team matters. Understanding neighborhood demand, pricing trends, and buyer expectations can significantly impact the final outcome.

7. Consider the Emotional Side of Selling

Selling a parent’s home is not just a financial decision—it’s often an emotional milestone.

It’s normal to experience:

• Guilt about selling
• Stress from family discussions
• Emotional attachment to the property
• Uncertainty about timing

A compassionate, experienced real estate team can help reduce pressure and guide the process step-by-step while respecting the emotional weight involved.

8. Work With Professionals You Trust

Managing an inherited home often involves coordination between:

• Real estate agents
• Attorneys
• Financial advisors
• Contractors
• Estate professionals

At the Tyler Goff Group, we help families connect with trusted local professionals throughout Sioux Falls and the surrounding area to simplify the process as much as possible.

How the Tyler Goff Group Can Help

Whether you decide to sell immediately, explore investment opportunities, or simply need guidance on your options, our team is here to help.

We provide:

• Local market expertise
• Home value evaluations
• Strategic pricing guidance
• Recommendations for repairs or updates
• High-tech marketing and exposure
• Compassionate, personalized support

Most importantly, we understand that this process is about more than real estate—it’s about helping families navigate an important life transition with confidence and care.

Ready to Discuss Your Options?

If you’ve inherited a home in Sioux Falls or the surrounding area and aren’t sure what to do next, contact the Tyler Goff Group today.

We’ll help you evaluate your options, understand the market, and make the decision that’s best for your family and financial goals.