As Mr. Price said, the property must go through probate. Generally, unless there is a will which specifically states that the house goes to someone as a gift the home must be sold and the money divided. If some heirs want to keep the home as their share of the estate, they can try to work out an agreement with the other heirs. But that can only work if there are enough other assets in the estate so that everyone gets an equal share.
A power of attorney is terminated when the principal dies. Your sister has no more say under the power of attorney. You'll have to go through a probate process, unless there was a trust.
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