House valuation (certain situation)

HouseGecko

Hi,

So I've been tasked by the will with being the executor of my late father's estate, and have to get the house valued. There's me and my two other siblings that are inheritors, with the estate being split equally, i.e. thirded, between the three of us.

What slightly complicates things, is I'd like to make an offer to my two other siblings for me to own the family home and buy the both of them out of it.

So sensibly, should I be approaching a chartered surveyor for a full valuation, or would an estate agent valuation or two be suffice? Obviously I want to be fair to my siblings in how much I pay them for their respective thirds, but at the same time I also wish to be fair to myself, and don't wish to overpay. Are estate agent valuations pretty fair and accurate?

Regards, and thank you for any help.

poseidon1

In this situation suggest obtain an independent Chartered surveyor red book valuation.

 Estate agents are not valuers and a surveyors valuation would also withstand any HMRC scrutiny for tax purposes, as well as satisfy your siblings that an accredited valuer has provided a professional valuation.

Savvy_Sue

I'd add to this that as executor, you need to be aware of 'self-dealing' issues, ie treating yourself more favourably than other beneficiaries.

For example, is it likely either of your siblings would also like to buy the house? 

gjcody

HouseGecko said:

Hi,

So I've been tasked by the will with being the executor of my late father's estate, and have to get the house valued. There's me and my two other siblings that are inheritors, with the estate being split equally, i.e. thirded, between the three of us.

What slightly complicates things, is I'd like to make an offer to my two other siblings for me to own the family home and buy the both of them out of it.

So sensibly, should I be approaching a chartered surveyor for a full valuation, or would an estate agent valuation or two be suffice? Obviously I want to be fair to my siblings in how much I pay them for their respective thirds, but at the same time I also wish to be fair to myself, and don't wish to overpay. Are estate agent valuations pretty fair and accurate?

Regards, and thank you for any help.

You will require a valuation for Probate, which the Estate covers the cost of. As has been said Estate Agent give more of an opinion that a professional valuation, whilst you could get 3 Agents and look at average, I would personally use the services of a RICS man/woman, there will then be no debate if one Agents opinion is double ths price of the others.  

Whilst the Will says a 3 way split if there are sufficient fund to 'compensate' you siblings within it, you could divide the assets by using a Deed of Variation, You get the house they get the cash.......who gets the car?  which you all sign saying you are happy with the new division.

Not knowing the ins and out of everything, potential IHT,etc, I suggest once you have all the figures you, not forgetting any allowances that may be carried over from your mothers Estate, you run them through the online calculator and see.

You should also of course consider expenditures you are making in settling the Estate, such as the monies charged by Mr RICS, Probate application fee, copies of the required Certificates, etc, etc and deduct those from what is left; they are charges upon the Estate and cannot be deducted from 'his worth' on the day of his decease. Only funerals and any outstanding legal debts are allowed as a deductions for this; though you also must include and credits he may have too - credits with Gas, Elect, Water, etc are easily to over-look.  

Linton

HouseGecko said:

Hi,

So I've been tasked by the will with being the executor of my late father's estate, and have to get the house valued. There's me and my two other siblings that are inheritors, with the estate being split equally, i.e. thirded, between the three of us.

What slightly complicates things, is I'd like to make an offer to my two other siblings for me to own the family home and buy the both of them out of it.

So sensibly, should I be approaching a chartered surveyor for a full valuation, or would an estate agent valuation or two be suffice? Obviously I want to be fair to my siblings in how much I pay them for their respective thirds, but at the same time I also wish to be fair to myself, and don't wish to overpay. Are estate agent valuations pretty fair and accurate?

Regards, and thank you for any help.

It would be sensible to get the agreement of your siblings to you making an offer and the method by which a fair valuation would be determined before you do anything further.  It could cause family relationship issues if one or both feel hard done by after the event.

Given the potential problems if the valuation turns out to be wrong paying for a RICS valuation would seem to be prudent.

Your wish not to overpay is a separate issue.  You can choose not to buy after receiving the valuation, that is your prerogative. It should not affect the determination of the value.  You need to keep and be seen as keeping your personal considerations separate from carrying out your duties as executor.