Selling a House under Probate - solving disagreements?

Richard_Webster

Why not get a proper surveyors valuation? It will cost a little but will be independent

You have to consider the real world. Surveyor's valuations are OK if you want to satisfy an official body like the Capital Taxes office re IHT but the truth is that in this market a surveyor doesn't have some magic ability to predict value that estate agents do not have. In fact they often ring up agents to get info on other similar properties in the area!

Only thing you can do is put it on the matrket and see what happens. If no interst then price too high!

Don't get tied up with asole agency agrement with a particular agent for too long. If Savills think they can sell it at about £585K then give them a month to find a buyer. If they don't like the month then ask why. They might say that if you want abuyer found that quickly then the price would need to be lower.....

goldbyron

I have printed out local prices to give to her sister. Good idea about giving sole agency a short time frame to encourage them to get a move on.

Robert_Sterling_3

You think the house should have an asking price £500,000
Your sister suggests £585,000

Assume the selling price is 10% less than the asking price.

So your method gets £450,000

£100,000 clears the mortgage

£350,000 to share.

£175,000 each.

But if your sister buys it there would be no estate agents fee etc.

On this basis your sister would appear to have a good bargain and her higher initial valuation works to your advantage.

silvercar

The sister may avoid CGT by being based in Jersey, but she won't avoid IHT. IHT is a tax on the value of the estate paid out of the monies in the estate.

Actually I don't see where CGT comes into the equation. There is no CGT on death. If the property were to be transferred into joint names, as opposed to being sold by the estate, there may be a gain based on the difference in value between the value at the time of transfer (is that the date of death ??) and the value at the date sold. As house prices are falling there would be no gain so not CGT to pay.

geoffky

Richard_Webster wrote: »

You have to consider the real world. Surveyor's valuations are OK if you want to satisfy an official body like the Capital Taxes office re IHT but the truth is that in this market a surveyor doesn't have some magic ability to predict value that estate agents do not have. In fact they often ring up agents to get info on other similar properties in the area!

Only thing you can do is put it on the matrket and see what happens. If no interst then price too high!

Don't get tied up with asole agency agrement with a particular agent for too long. If Savills think they can sell it at about £585K then give them a month to find a buyer. If they don't like the month then ask why. They might say that if you want abuyer found that quickly then the price would need to be lower.....

RICHARD you have just got me thinking.I was going to go the rics way when i buy because it will be for cash but what you have just said makes sense.. so if you were paying cash what way would you go..

Richard_Webster

RICHARD you have just got me thinking.I was going to go the rics way when i buy because it will be for cash but what you have just said makes sense.. so if you were paying cash what way would you go..

Sorry, Geoffky, not sure what you are asking? Are you talking about having a survey on a purchase? Most important thing about a survey is the information about the condition of the property. Obviously the surveyor will give you his view of a valuation and because he is RICS qualiified he has a duty of care to you, and should carefully consider what he says and provide reasons for it. However he will probably couch his valuation in qualifications.

That is all a slightly different question from that raised by OP. There is a difference between whether you believe a figure given by a surveyor is accurate and whether you can use his professional staus to convince someone else that what he is saying is right. If such a valuation would convince the sister in this case, then fine, if she will pay of that figure to buy out OP's share allowing for mortgages etc then OK, OP wins. However, if it is to get a figure to market the proeprty the surveyor might still be optimistic, or hedge his figure with qualifiications that OP will be concerned about, and the sister won't.