Does she have heirs? Would they live in the property? She should consider that keeping the property and willing it to heirs will give them a stepped up basis and eliminate capital gains. If she has heirs and they will enjoy the $400K tax basis for real estate taxes as long as they own it. It really depends on what her personal financial situation looks like. If she needs the money, her heirs (if there are any might support her finacially). I know I would!
She REALLY needs to talk to a tax advisor because it is far from a simple question.
