Inherited property - agreeing a value

AdrianC

charliewhisky said:

...he wanted me to get zoopla to visit the property :-)

Ah, bless...

CCT should not apply in this case as the individual threshhold wouldnt be reached and probate was granted a couple of months ago so  house value wouldnt have increased (if at all in that period)

Au contraire! If his one-third share has increased from £166k to £200k in those months, he's looking at a £33k capital gain, which is well above his annual £12k threshold...

GDB2222

charliewhisky said:

Thanks for replying everyone, i wrote a response which seems to have disappeared  ,I'll see how this afternoons valuation goes
then decide whether to offer him same ,a little more or just put on the open market, we're all executors, but only 2 of us have done any of the admin of course.
originally he wanted over £600k on a house valued at £500k for probate because zoopla said so!...i explained about zoopla which fell on deaf ears and he wanted me to get zoopla to visit the property :-)
CCT should not apply in this case as the individual threshhold wouldnt be reached and probate was granted a couple of months ago so  house value wouldnt have increased (if at all in that period)
I agree re RICS survey and did mention this however he says that an interested potential purchaser would offer more than they would value it at!

Every family has one i suppose!

The problem is that he wants the house exposed to the market. By offering him the average of the estate agent valuations, you are not offering him enough to forego the reassurance he is seeking  through putting it on the market.

If you offered the highest estate agent valuation plus 10%, say, he’d have to give that serious consideration. But, there’s nothing for him in the offer you have made. It could turn out to be a good offer, but in some parts of the country, property sales are going through well above asking price, so your offer may be on the low side.

The best way to resolve this is to put the house on the market. And, I guess you’ll have to handle that if you want things to progress.  

If you’re selling your house, where are you going to live? Are you going to have to rent something? If so, maybe you are keener on moving into this property than your brother is to sell it to you, and the price you offer should reflect that?

theoretica

daveyjp said:

If this isn't accepted the only way is to put it on the market, get an offer and then pull out of the sale, but that's a faff and not honourable to the agent or potential buyer.

A faff yes, but can be done honourably and openly - ask if the agent is prepared to market for a set number of months but you have a firm bottom price and will be buying it yourself if they don't achieve a sale price of more than £X (your offer + any extra costs of selling to someone else).  If the agents don't want to do this maybe they would speak to the brother about how unlikely a higher price sale would be.

letsbetfair

theoretica said:

daveyjp said:

If this isn't accepted the only way is to put it on the market, get an offer and then pull out of the sale, but that's a faff and not honourable to the agent or potential buyer.

A faff yes, but can be done honourably and openly - ask if the agent is prepared to market for a set number of months but you have a firm bottom price and will be buying it yourself if they don't achieve a sale price of more than £X (your offer + any extra costs of selling to someone else).  If the agents don't want to do this maybe they would speak to the brother about how unlikely a higher price sale would be.

You could also get the brother to propose this to agents - if a few tell him it'd be wasting everyone's time to insist on the higher price, that may convince him that your valuation is reasonable

sc32365

You can always apply to the court to remove him as an executor if an agreement can't be reached. 

Would go a long way to show he hasn't contributed at all to the administration of the estate and if your other brother supports it also you could likely get it done. 

Obviously not an ideal option if you want to keep a good relationship but if it can't be agreed that may be your only option. 

GDB2222

sc32365 said:

You can always apply to the court to remove him as an executor if an agreement can't be reached. 

Would go a long way to show he hasn't contributed at all to the administration of the estate and if your other brother supports it also you could likely get it done. 

Obviously not an ideal option if you want to keep a good relationship but if it can't be agreed that may be your only option. 

You are joking, surely? One of the executors wants to sell trust property to himself, possibly at an undervalue, and you really think that the court will step in to remove a dissenting executor? So far, the op has done nothing wrong. He is seeking agreement with the other beneficiaries. He’s just a bit frustrated because one of the others is holding out for a course of action that doesn’t fit in with his timescale.

In any case, the OP wants advice on how to settle this fairly, not how to inflame the situation. 

getmore4less

^^^^^
1 executor self dealing against 1 that want it on the open market.


An approach is put up or shut up.

If they want more they take the hit if it does not sell for more but get any surplus, 
ie. they counter offer at a higher price and get to keep the extra if you won't match

as long as the highest it is worth to you is higher than the lowest they will accept for the quick sale you have a chance

That does mean you need to have the funds in place to buy them out..

For the sake of ~£5k might be worth a punt on the open market to see where the offers come in.


How easy it it to value against comparable? 

charliewhisky

Thanks again for the further comments,much food for thought, on reflection i do wish to keep good relations of course and honour my parents wishes so working with an E.A.to put house on the market with an honest upfront explanation of the situation will be the way to go.
If i match any offers - minus selling fees and a bit for no hassle of having to clear out he whole proerty  by a certain date we should get to an acceptable figure.
my other brother and i just have to accept that as his way of life is not "conventional" we'll be doing all the admin.

Thanks all again for taking time to comment  :-)

AdrianC

charliewhisky said:

...working with an E.A.to put house on the market with an honest upfront explanation of the situation will be the way to go.
If i match any offers - minus selling fees and a bit for no hassle of having to clear out he whole proerty  by a certain date we should get to an acceptable figure.

"Hello, EA? We want to go through all the hassle of pretending to sell the house, but we aren't actually going to do so. I'm sure you and the potential buyers will be happy to go along with this, right?"
<click>
"Hello, hello? Oh, we must have got cut off"

charliewhisky

AdrianC said:

charliewhisky said:

...working with an E.A.to put house on the market with an honest upfront explanation of the situation will be the way to go.
If i match any offers - minus selling fees and a bit for no hassle of having to clear out he whole proerty  by a certain date we should get to an acceptable figure.

"Hello, EA? We want to go through all the hassle of pretending to sell the house, but we aren't actually going to do so. I'm sure you and the potential buyers will be happy to go along with this, right?"
<click>
"Hello, hello? Oh, we must have got cut off"

Yes not ideal I must admit and to avoid i'll be offering him more in line with what he now thinks would be acceptable first otherwise its a kind of stalemate, but as i said my house is sold and i need to sort something out.
I have the option of moving in there and doing nothing of course!