Getting property valued to buy out sister

Supersaver50

Myself and my sister inherited out father’s property last year.  

Is it just a case of getting 3 estate agent valuations and going for the middle one?  Or do I need to get a proper report?  It could get messy as my sisters husband completely renovated the property 25 years ago for our parents.  He did everything except the roof but it looks in ok shape.

Im worried about estate agents inflating values to get the business at the moment but obviously we aren’t selling, we just want the valuation.

Like any seller my sister will want as much as she can get for her 50% and we will want to get it as low as we can go.  Presumably buyers still knock money off the asking price even in a very buoyant market.

Our sons will live in the property from next year but I doubt she will make any concessions.

Thrugelmir

You need to agree with your sister on a suitable compromise. Average of 3 estate agents perhaps or alternatively a RICS surveyor though they will charge. 

cattie

Any works done 25yrs ago definitely  won't count & will probably be considered dated by ea's. Most ea's will give you a fair ideal of what a property might achieve on the open market & be able to show you print outs of similar properties that they have sold over the past year or so.

It's not the ea's that currently inflate prices, more the buyers who desperate to secure the property will offer way over the asking price. Of course your sister will want as much as she can for her 50% & perhaps if she feels you're trying to buy her out on the cheap she'll just refuse to sell her half to you. Treat her as you'd like to be treated- fairly.

HampshireH

Supersaver50 said:

Myself and my sister inherited out father’s property last year.  

Is it just a case of getting 3 estate agent valuations and going for the middle one?  Or do I need to get a proper report?  It could get messy as my sisters husband completely renovated the property 25 years ago for our parents.  He did everything except the roof but it looks in ok shape.

Im worried about estate agents inflating values to get the business at the moment but obviously we aren’t selling, we just want the valuation.

Like any seller my sister will want as much as she can get for her 50% and we will want to get it as low as we can go.  Presumably buyers still knock money off the asking price even in a very buoyant market.

Our sons will live in the property from next year but I doubt she will make any concessions.

You need to both play fair. It doesn't need to get messy and her husband doing it up 25 years ago isn't relevant....... And it was 25 years ago.

getmore4less

What was it valued at for the estate?
What does your own research value it at.

if the sisters hubby's contributions were to be recognised that should have been done by the wills of the parents.

Supersaver50

I only raised the fact that he renovated it as he may say he won’t reduce it as he did it up so well.   We valued it at £240K last August for probate purposes.  One estate agent then valued it at £250K in September so we weren’t far off.  We’re now 8 months on so will have to see how much it’s increased in value.   

Supersaver50

How much is a valuation report and would there really be any benefit compared to obtaining 3 valuations?  Any reports we’ve previously had make it sound as if a house is falling apart.

Scotbot

Supersaver50 said:

How much is a valuation report and would there really be any benefit compared to obtaining 3 valuations?  Any reports we’ve previously had make it sound as if a house is falling apart.

A valuation report wirhout a survey should ony cost a couple of hundred. All it will give is a valuation and a short rationale citing nearby sales thst were used for the estimate. It will also come with the caveat that it comes with a 5% variance, which means it could be 5% more or 5% less. TBH i doubt it will be any different to an EA.

princeofpounds

Yes, pay for a RICS surveyor and agree in advance to abide by their judgement. 

Also agree how to appoint them - one person suggests a short list of three and the other selects one, or vice versa, perhaps.

A few hundred will be a huge benefit in terms of avoiding arguments. 

A 25 year-old renovation should not be relevant. It was (presumably) a gift to the parents at the time, freely given. Not a loan of an investment in the property in return for equity. The parents have (presumably) decided to split their estate equally. Plus a 25 year old renovation should be close to fully depreciated by now. But either way, the surveyor will assess the value in its current condition, 25 year-old renovation and all.

edgex

Supersaver50 said:

I only raised the fact that he renovated it as he may say he won’t reduce it as he did it up so well.   We valued it at £240K last August for probate purposes.  One estate agent then valued it at £250K in September so we weren’t far off.  We’re now 8 months on so will have to see how much it’s increased in value.   

So that's the value. I assume the 'we' was an actual valuer/EA.
Is the possibility of £5k extra for your sister worth the hassle?

theartfullodger

Does sister HAVE to agree to sell, and if so surely she can decide the price?  Just like any other vendor of property.