Determining Acceptable Value of Inherited Real Estate?

[ultrarunner]

Have them buy you out today at your percentage of the current appraised value. Then they can do whatever they want with it. No future battles or hard feelings.

I’ve got nowhere to move the shop I had set up with a dozen rebuilt engines in the basement and a restoration basket case… plus the sentimental attachment to the home where I was raised.

My last 7 years on hold caring for mom… only going to my nearby home to water my plants and pickup mail.

The folks consulted with them back in 1995 and both said no interest or desire to be in the family Oakland home… they have very nice homes in upscale communities… clearly much better off than myself although I’m not complying… just saying the difference between an engineer and top earners in Real Estate can be vast… some years their holiday bonus was more than my yearly earnings…

Both left home for college and never spent another night but repeatedly said mom… you need to get out of Oakland… let’s get this sold after dad passed and find you a nice little condo in Walnut Creek way…

 

[ultrarunner]

Are you the executor of the estate ?

What are the terms of the will as to how the assets of the estate are to be disposed of, in terms who gets what ?

Yes… equal as to value distributed but in specifics family home to me…

It comes up short but this is why I offered full appraisal…

Trust loans is one way to make it happen when everyone is on the same page… cash out to distribute secured by home which diminishes the net value of home because encumbered.

In simple terms do you take title as owner occupant with $4k annual property tax or take tittle with 16k annual property tax all depending on how it’s structured… a only in California thing.

 

[drssg]

If I understand correctly, you are willing to buy out their shares for the $975K appraised value. Are you also willing to buy them out for $1.1M? Are they willing to accept that, or do they really want to sell it for whatever the market will bring?

In the grand scheme of things, the two prices don't seem that different to me. It might be worth the emotional benefit of having the house remain intact until you are more comfortable doing something with it.

If that's not an option, we used a company that comes in and boxes everything up and categorizes it for auction. Their fee is a percentage of the total auction sales. Everyone can remove any keepsakes ahead of that process, and I found that to be easier than reminiscing over the memories associated with practically everything in the house.

Good luck, and I'm sorry that you have to go through this. On the plus side, it is nice that you were willing and able to be there with your mother near the end.

 

[ultrarunner]

The twist is they say with the right mix of buyers it could even be more… you just don’t know.

I suggested listing just the way it is with me having the right to match the highest offer… that was a non starter.

They have zero interest in the furnishings… wives said don’t dare bring anything home.

Only things of value would be my shop and the basket case antique project cars, etc.

 

[MapleLeafFarmer]

Ive heard others in similar situations hold an auction between the parties.
Highest bid gets it.
If your offer is not high enough they can offer more, make the work and take the risk....... or not.
That way all sibling have same / fair chance at taking it to next steps if they so wish.

whoever wants it the most can offer the most then do with it as they please including improvements or waiting or living on it, whatever.

 

[ultrarunner]

I’m thinking of getting a legal opinion from a lawyer in town… I knew his father and the son continues and people I referred thanked me… just hate spending money frivolously…

Of course I can just plow through and run the risk of becoming an only child which I guess is more the gist of this thread

 

[dstig1]

A difficult situation but what exactly is your question?

About the only thing you can do is talk and come to an agreement. If they want you to do all the work while they just sit back and criticize, I would recommend a hard NO to that. And in any case, start clearing out your shop/car stuff now...

 

[ultrarunner]

Ending up with the house at a fair value so when it’s all said and done people still talk to each other.

The issue comes up when I’m told the only way to determine fair market value is by selling on the open market.

 

[dstig1]

They're not wrong about that. Fundamentally the only way to know for sure is to list it and get offers. But people can still come to an agreement based on best available info absent a market sale. So the other 2 are being unreasonable/stubborn? Or is this just round 1?

If they refuse to be reasonable, then about all you can do is put it in their lap and say "let me know when you are done. I will help to my 1/3 share limit of this."

 

[ultrarunner]

Just digging in saying spend money to make money…

Of course no one is stepping up to do any lifting… hire it out and I can supervise…

Don’t want to leave any money on the table but by the same token my 403b, life insurance, etc all goes to their kids…

I punch a time clock… they don’t.