Posted by samuel b tucker jr on November 07, 2006 at 24:17:55:
buy of six sibling for $600,000
Inheriting house, buying out sibling - Posted by Tom
Posted by Tom on October 02, 2006 at 19:05:06:
When our father died this past February, my sister and I inherited his house in NJ. I plan to buy my sister out and live in the house. I have not yet moved in, and so far sister and I have been using the house about equally. Meantime, real estate prices have dropped in the past several months. Is it reasonable to have the house re-appraised and buy out based on today’s value, or do we have to go with the value at the time of father’s death? What other implications are there to consider in such a case? Thanks!
Re: Inheriting house, buying out sibling - Posted by Rick, the Probate Guy
Posted by Rick, the Probate Guy on October 03, 2006 at 17:04:25:
I agree with Jimmy, as to the lack of rules regarding the buyout (absent a will that dictates your respective interests other than 50/50).
However, as a practical matter, you’ll most likely have to probate the estate and figure the costs of this when splitting the house value and determining the loan amount. Also, most every lender that I’m familiar with will require the probate to be closed and the property distributed PRIOR to making the loan. If the attorney and the heir who is receiving cash in lieu of the property are in agreement (along with any creditors who may pop up later), work thru the logistics of this ahead of time so that ther are no hard feeling due to delays or unreasonable expectations.
This has been my primary business here in Calif for some 17 years and we’re done about every kind of buy-out and work-out that you can imagine. Sorry, we don’t have any leads on a lender in NJ.
Hope this helps.
There are No Rules - Posted by Jimmy
Posted by Jimmy on October 03, 2006 at 08:08:22:
the process by which you and sis inherited house is complete. what you do not is up to you, and is a matter of negotiation. there is no rule that you have to use date of death value, or date of distribution value, or any other value to do the new deal.
get a new appraisal and make your deal