"I believe I need to file a "first" and "final" 1041 for the estate to report the sale of the home."

Why do you believe that?  If no gross income, no return required.  

Perhaps you mean, "just to be on the safe side, I think I'll file a return, which is something like filing a final 1040 for the decedent although as far as I know there wasn't enough income before October 2020."  (Setting aside the question of Recovery Rebate Credits.)

But who are the beneficiaries?  Would a K-1 passing through a capital loss be helpful to them?  Or were they living in the house all along?