The bungalow in Aberdeen is listing for $500,000, even though it was last valued at less than $67,000, NME.com said.
Kurt lived there from the time he was 2 until his parents' divorce when he was 9, then again when he was a teenager, the website said.
The rocker's sister Kim said the family would welcome a partnership to transform the building into a museum, since it is located near the Kurt Cobain Riverfront Park.
"We've decided to sell the home to create a legacy for Kurt, and yes, there are some mixed feelings since we have all loved the home and it carries so many great memories. But our family has moved on from Washington, and feel it's time to let go of the home," the BBC quoted Kim Cobain as saying.