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Trying to unload share of inherited house
invite response
2016 Feb 16, 12:28am 3,364 views 13 comments
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Another way to look at it is ... before the inheritance you had what you have now. IF (big if) you see some money from it, good deal, if you don't you're no worse off than you are now. So let the executor deal with the mess, headaches and issues just sit back and wait for whatever. As long as they don't come looking to you FOR some money, you're better off for it. Well, that's one way to look at it.
FNWGMOBDVZXDNW
2016 Feb 16, 7:06am
I'm guessing that it would take 10% or so to sell the house. To the 6% realtor fees (it might be less), go ahead and add local taxes, recording fees, etc. If you take 90% of 1120K, you get 1008K, which is pretty close to the proposed price.
If you really think your share is worth substantially more, and would prefer to keep it at the current buyout price then keep it. But, it doesn't seem like you feel that way. So, know that any solution is going to be a compromise, and be happy as long as you don't get hosed.
It's pretty common for multiple people to feel screwed in these circumstances for one reason or another. And even if it were an arms length transaction, you might worry that you didn't get a great deal. Just let that go.
10% rule.
If a family member pays more than $100,000 they are not stupid ,they are merely foolish.
To the 6% realtor fees
Who pays a 6% realtor fee today?
So I actually don't know the reality. I've never sold or bought a house. I've seen this number, but it's actually 3% seller + 3% buyer.
FNWGMOBDVZXDNW
2016 Feb 16, 11:50am
The 3% buyer fee is paid by the seller. That is, if the buyer offers and the appraised price is 1120K, the buyer pays 1120K, and 3% of that goes to the buyer's realtor, 3% goes to the seller's realtor. That's traditional. The seller negotiates a percentage with their realtor, and it might be lower than 6% total. But there are fees that are outside of this that will typically be charged to the seller. Plus, some offers would be 1120K, but the seller has to fix x, y, z. So, some additional money would need to be paid by the seller.
Y
2016 Feb 16, 12:12pm
Arn't we distant cousins??
The house was appraised at 1.12m. Nobody wants to do remodeling or want any hassle. Since this will be between family members, we don't need a realtor.
But there are fees that are outside of this that will typically be charged to the seller. Plus, some offers would be 1120K, but the seller has to fix x, y, z. So, some additional money would need to be paid by the seller.
I'm trying to get a realistic handle on what the fees (and taxes) might be.
In SF where the market is pretty hot, does the seller actually typically have to put in additional money for fixes?
I have no idea what other fees / taxes there might be that the seller normally needs to put in.
FNWGMOBDVZXDNW
2016 Feb 16, 2:55pm
I'm trying to get a realistic handle on what the fees (and taxes) might be.
In SF where the market is pretty hot, does the seller actually typically have to put in additional money for fixes?I have no idea what other fees / taxes there might be that the seller normally needs to put in.
I think you need to find someone plugged into the local scene (I am not) or read some articles on current taxes and realtor fees. You could consult with a couple of Realtors or a settlement company. I just looked up the transfer tax in SF, and it is pretty low (~$8K) for that price.
It doesn't have to be exact, but approximately how many square feet (and bedrooms if you're comfortable sharing).
It doesn't have to be exact, but approximately how many square feet (and bedrooms if you're comfortable sharing).
I don't want to say too much in case relatives are here, but does 2400sf sound about right for the appraisal value?
iggy asked: does 2400sf sound about right for the appraisal value?
I did a spit take; I'll do another if you say it's located in Noe Valley. That said, you could hit that price per sq.ft. for a variety of reasons, the primary being location. If it's in Bayview/Hunters Point, Ingleside, Visitacion Valley, or Excelsior, then maybe that appraisal makes sense.
One option could be to do a sale with right of first refusal. Its a bit tricky as folks might be reluctant to write an offer if they know one of the part owners can match it. At the same time, you're more likely to get a market price. I'm inclined to think that the co-owner might lose interest when they see what the house will sell for.
I inherited part of a house in San Francisco. I want to sell my share. Another family member wants to buy my share (and a few other family members' shares).
The house was appraised at 1.12m. Nobody wants to do remodeling or want any hassle. Since this will be between family members, we don't need a realtor. We assumed there will be costs lost to that. So the buyout proposed is currently for 1m flat. Is this a fair price compared to all the fees that would normally be lost? I've heard to expect 6% loss due to realtors. However, that still leaves a 60k differential which I'm not sure I should be concerned about. Can I assume that would be eaten up by other fees normally so it's a wash, or is this a lowball?
Also, the financing will need another 2-3 months. I'm not the executor of the will, so it's not like I can go out and sell the house myself. But I do have concerns that delays could affect the pricing either way. (If it goes up, I'm still locked in at the flat price. But if the market tanks, they could back out.)
I like my family so I don't want to cause problems. That's one of the reasons I want to sell my share. But even trying to sell my share feels like a minefield.
Any advice?