Determining Acceptable Value of Inherited Real Estate?

[Sigarms]

Dad kind of foresaw a little of this...

When he was fighting cancer but very sharp of mind he was going to gift a property to my siblings...

One brother asked how soon would it happen and that ticked dad off when he heard he was planning on selling it.

That story kind of tells you a lot...

 

[plowhog]

I'm ok with listing with right to match

In my opinion, not a good idea. You can easily pollute the pool of buyers.

You are not selling in a hot market. It is not a pristine property. Interest rates make purchasing expensive. And ... drum roll ... there was a recent inheritance, now three siblings are involved, and they don't agree.

Just with those factors, many buyers and buyer's agents will flee. Ownership by multiple parties who don't agree is a proven, time-wasting mess to get tangled into. On top of that, if a buyer learns one of the siblings wants to buy the property-- plus has reserved a first right of refusal to match any offer-- yikes. Why would a buyer even waste their time preparing an offer with an expectation the sibling, in a superior position, will use their offer to effect a sale to them instead?

Your first right of refusal must be disclosed in the MLS listing. You can't avoid that. If I were an agent representing the buyer, once I saw one of the siblings was reserving such a right, I'd say: "let's find something else."

I would like to be helpful, but just feel that this approach is not a good idea.

 

[ultrarunner]

There may be some positive movement in the works…

Im aware of 3 right of refusal situations to arrive at Fair Market Value and in all cases it was successful in selling.

One involved a group of Investors that pooled to purchase the California Landmark property The Nut Tree for those familiar.

The municipality had the right to match but dragged its feet for years and the heirs were more than impatient.

The heirs forced the hand by listing the property forcing the city to put up or shut up when a top offer with proper funds deposited in escrow was accepted.

The city closed the deal and took ownership…

 

[newbury]

Well hang in there.
It's nice to read of the 3 grandaughters visiting her in hospice.
But remember advice given freely is worth what you paid.

 

[plowhog]

Stepping back a little, my opinion is you already have the thing of greatest value.

You took loving care of your mom, being generous of your time. The other siblings did not. And so my point is-- the value, and memory, of knowing how you took care of your family, over time, is more important than squeezing another 10% out of a piece of real estate. For some people, at least.

I would bet the nieces and nephews know very well what you have done, and how caring and generous you were of your time and energy. And they also know what the others did not do.

Maybe the purchase offer you made is a microcosm of the family dynamic. You suggested a solution to a problem, and made a generous and clean offer on how to proceed. And what you got in return was to be asked by the siblings: "how could we make even more money than what has been offered?"

 

[paulsharvey]

Err, I really think of this as a business and money issue; and family doesn't mix well with business. One day, mom and her husband will pass, hopefully a long ways from now, but it will happen. I have two sisters, and a brother; as well as her husband has a daughter and son; so that's splitting everything 6 ways. Noone knows exactly what their assets are, but as in many cases, it's primarily the home/land. I know they have floated the idea od basically forcing the home and property to stay in some kinda trust, that acts a lot like a Timeshare; in their mind, it all stays together, and everyone can use it... The issue is, we are spread between 5 states, and only me and 1 sister live close by. That particular sister really likes the idea of a timeshare kinda deal; until you start sending out property tax, maintenance, power bill and repair bills; and 4 out of 6 live over a 1000 miles away. I live the closest, and me and wife have briefly discussed; and I know what everyone is thinking. They Assume Paul will mow the yard, keep up with the house, ect, and all is good. Sorry, not doing that. Also, you live 1000 miles away, how are you gonna feel when you get the $2500/year bill for taxes, power, insurance, mowing, ect.

Every family has its own dynamic; But I feel I have an obligation to My family (my wife, my kids), and part of that obligation is to not put myself in bad financial situations over some random extended family (siblings, and 2 step siblings I've met like 2 in my life). That's Not to say I would be blood thirsty or greedy, but im not gonna pay $2500/year to keep some kinda extended family peace, I'd much rather use my money to set my own family up. That's not even taking into account step siblings, or random people you don't consider family; no I'll will to them, but no good will either.

So, I get the OPs siblings situation, it might seem greedy, but they owe our OP nothing, and their families everything, and if that means you don't see the aunts/uncles at holidays, so be it.

For our OP, I really think you need to do a deep think in what the property is worth to You, and don't over extend yourself. If $900k is what it's worth, don't pay more; if 1.2m makes sense, you it works for you, do it. This isn't Really about feelings, it's about Math.

 

[paulsharvey]

Don't know if that end part conveyed what I really meant; people end up stuck on "what would mom/dad want me to do"; sorry to be blunt, but they are dead, and they would want (I assume) you to make Smart decisions and not put yourself in a bad situation.

It also is frequently a weird point, when you end up with parents home, you got to stop thinking of moms/dads house, and (if the money/family works out) make it your own. Change what you want, remove what you don't,

 

[ultrarunner]

All good points...

Their trust from 35 years ago is clear as to instructions and wishes but the devil is in the details.

I use to wonder why many trusts have clear instructions to liquidate and I can appreciate if it's done by a third party the individuals are not so focused on each other.

The farmer side of my family lives on land handed down from generation to generation with one back to the 1700's.

This is my first time at bat so I'm certain someone that's been around the block would have have the experience to streamline.

One of my older friends is a retired CPA... he ended up settling many estates in his extended family and said by the third one he had it down cold...

I did ask him if that's why he only had one child and he laughed... no but it makes things incredibly simple.

I've been reading about all the family disputes of Senator Feinstein and it shows even a very well to do connected family of lawyers and judges have bitter battles over property and expenses.

 

[4570Man]

Most of this thread has been about taking the high road but your siblings pretty clearly intend to screw you. What if you reversed the roles and just kept living there? California law protects the residents right or not and having 1/3 ownership puts things even more in your favor. They’d almost definitely not be able to throw you out.

 

[ultrarunner]

There is recently passed legislation giving more rights when it comes to not being forced out…

I was never a circle the wagons type… more of hold down the fort.