Getting property valued to buy out sister

Octothorpe

Tbh if that was the value in September it's potentially worth a lot more now due to way the market is currently. 

Mutton_Geoff

I think you need to agree with your sister the method of valuing first. The correct way for probate is a red book valuation but it sounds like you'll have a fight on your hands. Can you agree to use the same method as you did to arrive at the original figure? What has happened to the house since? Who has been benefiting from it?

getmore4less

You could stick  it on the market and outbid everyone that offers.

Ask again what does  research say it's worth.

You put your fare offer of what's it's worth to you on the table and if they want more they get to try and get that paying the costs if they can't.

AlwaysWorking

Supersaver50 said:

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

I don't mean to be rude, but why should she? I anticipate having this same problem with one of my siblings in the (hopefully distant) future as they have already expressed an interest in owing the family home...and I'm dreading it tbh. 

newsgroupmonkey_

Octothorpe said:

Tbh if that was the value in September it's potentially worth a lot more now due to way the market is currently. 

That's not quite true and there are a load of variables here.

Firstly, we don't know where the OP's house is. That makes a huge difference.

Plus, prices are starting to drop and are going to drop even further as we're now at a "no-return" point for SDLT.

To put into perspective, in January (when it looked like we were at the point of no-return), prices actually dropped. So although between September and December, the average price went from £245k to £251, they dropped to around £249 in January. They crept back up again, but I'd fully expect them to drop to around £250k in the next week or two.

I think based on this, offering £250k (as someone else suggested) would be a good compromise. Interesting that the OP's house is bang on the money for the "average" house

[Deleted User]

It kinda depends if the property is in high demand or not. In some areas houses are flying off the market at above asking prices. You can get it independently valued, but if your sister feels that it would sell for more on the open market then she could well refuse. 

Why would she make any concessions just because you plan for your sons to live there? 

Supersaver50

My sister and I naively just decided on £240,000 as the value at probate without realising CGT would be calculated using this figure.  We went off what 2 houses on the same road sold for and we weren’t far off as one EA said ask for £250K the following month when we got it checked out.

Ive read there is a difference between EA valuations, which I understand is more an asking price, and an open market valuation, or does it not really matter in the current climate. The house is currently rented out and has been for 3/4 years. Not sure if that would make any difference at all to a valuation .

Would anyone in our situation ask for an open market valuation from three estate agents and would they charge for them?

getmore4less

Are you buying it as rental or a vacant possession?

Who has taken over management and ensuring all the legal obligations are being met towards the tenant s and ensure the correct tax is getting paid while in the estate.

edgex

Supersaver50 said:

My sister and I naively just decided on £240,000 as the value at probate without realising CGT would be calculated using this figure.  We went off what 2 houses on the same road sold for and we weren’t far off as one EA said ask for £250K the following month when we got it checked out.

Ive read there is a difference between EA valuations, which I understand is more an asking price, and an open market valuation, or does it not really matter in the current climate. The house is currently rented out and has been for 3/4 years. Not sure if that would make any difference at all to a valuation .

Would anyone in our situation ask for an open market valuation from three estate agents and would they charge for them?

https://www.thegazette.co.uk/wills-and-probate/content/103591
https://www.co-oplegalservices.co.uk/media-centre/articles-may-aug-2018/how-to-get-a-house-and-its-contents-valued-for-probate/

Is probate sorted & any IHT dealt with?

Did your sister propose/agree with that valuation?
If so, then there shouldn't be any issues with that being the valuation for you buying out the other half of the property.
If she want's to get a new valuation, on the chance there's been a minor increase in value, then tell her that she can bear the costs of doing so (along with any impacts it has on IHT)

silvercar

You both need to come to it with a view that you buying your sister out means you will save on estate agents fees, so it should be a win/ win. An independent valuation will be a lot cheaper than estate agent fees, so agree who to use and accept their valuation.
The other option is to agree to market the property for at least X weeks and see what the market values it at. See what offers come in and then you can decide to match the offer or not.