The sale transaction of the property is reportable by your wife and the other heirs, since they became owners by inheritance prior to the sale. Thus, the sale will need to be reported on schedule D of your Form 1040 for the year of sale.
Your wife's cost basis in the property is equal to 1/3 of the value of the home reported in her Aunts's estate tax return (Form 706 is required to be filed in the event the decedents gross estate exceeds $1,500,000 for decedents dying in 2004 or 2005). If an estate tax return was not filed, then your wife's cost basis is 1/3rd of the fair market value as of the date of death of the Aunt (i.e. approx. 1/3 of the $100k appraised value).
The reported sales price will be equal to 1/3 of the proceeds fom the sale less selling expenses. The cost basis will be equal to 1/3 of the date of death fair market value plus any improvements made after death but before the sale.
Neither N.C. nor the U.S. has an "inheritance" tax, thus as beneficiaries you will only be subject to income tax on any appreciation of the property between the date of the Aunt's death and the date of sale. If you had inherited tax-deferred accounts such as IRA's, you would have to report as ordinary income on any withdrawals, just as the Aunt would have had too.
Based on the information you provided, there will likely be a loss reported by you equal to your share of the selling expenses (i.e. your net sales proceeds equal $33,333.33- 1/3 of the expenses less basis equal to the FMV at date of death of $33,333.33).