My dad and his two siblings inherited 3 pieces of property. While there were 3 siblings and three properties, they were of wildly varied value, so it wasn't an "each take one" situation. Thankfully, it worked out fine. Two were sold, and my dad took one--the one grandma lived in until she died-- as his share (and paid money to the siblings by way of taking a smaller portion of the rest of the estate, since the one he took was the most expensive by far). My husband and I, newlyweds at the time, then purchased the house from him.
He/we paid a fair price--the appraised, fair market value minus what they would have had to pay a realtor. Everyone was fair and reasonable about it, no one quibbled over a few thousand here or there. (Could they have sold that home for $3000 more, or would it have actually gotten $4000 less?)
In their case, leaving property worked just fine. I guess the issue is when it's super complicated (like the farm division above, with unclear boundaries), or when one person wants to keep and one wants to sell (and the estate doesn't have enough money to settle the difference, or the parties involved can't be reasonable).
There's a chance DH and I would actually want my parents' current home by the time we inherit, which is hopefully way in the future. I'd fully expect to pay my sister for her fair share of the value. I also fully anticipate both of us being reasonable about what that value is. (Perhaps I'm setting myself up for disappointment there. :lol) Thankfully, we are both reasonable people, and we are financially secure enough (and likely will be even more so by the time we are inheriting) that a few thousand dollars won't make any difference, so we will be able to afford to be magnanimous with sale prices and estimate commission. I'd never expect for her to give me the property obscenely cheaply, and nor would I think she'd try to get more out of the deal than she would with her half of the proceeds of a traditional sale.
As with so many of these things, I think family dynamics is important when considering what will work. I would have for my parents to sell off things they want or think are important to try to prevent drama between my sister and I down the road.