Can you sell a home in Snohomish or King County if it has an IRS lien?
Yes, you can sell a home with an IRS lien, but the lien must be addressed before closing. An IRS lien gives the federal government a legal claim to part of your home’s equity. REALTOR® Marie-Noelle Metseye helps homeowners in Snohomish and King County work with the IRS, title companies, and tax professionals to resolve the lien and move forward with a successful sale.
What Is an IRS Lien?
An IRS lien is a legal claim placed against your property when you owe unpaid federal taxes. It attaches to all your real estate and personal property, meaning it must be satisfied or formally addressed before the home can be sold.
Common reasons homeowners discover an IRS lien include:
- Unpaid income taxes
- Late or un-filed returns creating unexpected balances
- Business-related tax debt
- Accruing penalties and interest over time
Step 1: Confirm the Lien Details
The first step is to confirm how much you owe and whether the lien has been officially recorded. A title company will identify the lien during the title search. You can also request a payoff amount directly from the IRS.
Marie-Noelle reviews the preliminary title report early to ensure all lien information is accurate before moving forward.
Step 2: Understand Your Options With the IRS
The IRS provides several options to help homeowners sell, even when they still owe back taxes. These include:
- Lien Payoff: Using sale proceeds to fully pay off the balance.
- Lien Subordination: The IRS allows the sale to proceed while keeping its claim on remaining proceeds.
- Lien Discharge The IRS releases the lien from the property (common when sale proceeds are insufficient).
Marie-Noelle works with your tax professional and the IRS to determine the fastest and most realistic solution for your situation.
Step 3: Determine Whether You Have Enough Equity
Your home’s equity will determine how the lien can be handled. If your equity covers the total IRS debt, the lien will be paid off at closing. If your equity is limited, you may still qualify for lien discharge, allowing the sale to proceed even if full payment isn’t possible.
Marie-Noelle’s Comparative Market Analysis (CMA) helps you understand your estimated sale price and likely net proceeds.
Step 4: Work With a Title Company and Tax Professional
Selling a home with an IRS lien requires coordination between your REALTOR®, title company, and a tax professional. Documentation must be submitted to the IRS, and approval can take several weeks depending on the complexity.
Marie-Noelle ensures all documents, including HUD statements, payoff requests, and IRS forms, are submitted correctly and on time.
Step 5: Market and Sell the Home Professionally
While the lien is being addressed, Marie-Noelle prepares the home for market, ensuring it shows well and attracts qualified buyers. She manages pricing, marketing, and negotiations while keeping buyers informed of the timeline and lien resolution process.
Local Market Insight
IRS liens are more common in situations involving job loss, unexpected tax bills, or inherited properties. In areas like Everett, Shoreline, Bothell, Lynnwood, and Renton, strong buyer demand means homes often sell quickly once title issues are resolved.
This demand gives homeowners flexibility, even when facing complex tax situations.
Conclusion: You Can Sell, Even With an IRS Lien
An IRS lien doesn’t mean you’re stuck. With the right strategy, proper documentation, and a dedicated REALTOR®, you can resolve the issue and move forward with your home sale.
If you need help selling a Snohomish or King County home with an IRS lien, contact REALTOR® Marie-Noelle Metseye for confidential guidance and a clear, step-by-step plan.
