Inheritance advice pse?

stevwarn

I have just reurned from the cottage, there is so much to do! We have an EA coming around on Tuesday. Any advice on getting a realist valuation? Also advice welcome for how to value household items/sell? Probate has just been sent off but not sure if my sister is ready to sell at the moment.

Doozergirl

Never tell an agent what you think the property is worth. LOTS of them ask and it's only to see if their valuation is in line with yours. If it isn't, they will alter their 'valuation' to fit.

stevwarn

How many EA's would you have around to determine the most realistic price? Or does it come down to what someone is willing to pay? Is it worth selling the cottage via auction, as it is a doer uper?

Doozergirl

Three valuations.

I'd try the open market first. Auction buyers at the moment are very shrewd - the amateur speculators that would push a property past it's market value have gone really so you're left with a hardcore of people who only want a bargain.

The open market is a wider market and you stand more chance of finding someone who is looking for a home.

The best way to sell a doer-upper in these parts has been to put a very low price on it and ask for offers over. It sets it's own level, ends up a bit like an auction but buyers aren't restricted tot he terms of an auction (immediate exchange, completion in 28 days)

stevwarn

Thanks Doozergirl. I feel that I should get 3 valuations go for the lower/mean average and try the open market using your suggestion. If it dosen't sell someone has advised me to let it to the Local Authority as they carry out all repairs and upkeep + rent is guaranteed?! The only downside, so they tell me, is this term is 2 years. However, hopefully in 2 years the house market will improve and I can sell. Anyone out there with any advice on this?

stevwarn

We had an EA around and they valued the cottage between £120k-£130k, but done up (new kitchen/bathroom, flooring, paint, building a landing, upstaires shower room) could be worth £160k! The EA also advised selling by auction, as it would make more. The EA fees for open market was 1.75% and for auction £750 + 2%. My sister is thinking about buying me out, but I'm not sure what to do. Do I let my sister buy me out or do the cottage up together to sell? I feel that my sister does not want to let the cottage and wants to keep it for a weekend retreat, so if we did it up she may want to buy me out at that point. Any advice please?

Doozergirl

Well, it would be nice if your sister wanted to buy you out of course.

Before you make any decision to renovate I think you should have a full survey on the property to establish what needs doing. You can tell the surveyor beforehand that you are going to renovate it for sale, so need to know what needs doing. They should quote you accordingly depending on the amount of detail you need. A list would probably be fine rather than a full 20 page document!

It's so very important when you do this for resale that you get it absolutely right. Buyer's surveys requesting damp reports or chimney stack that need rebuilding or repointing, anything really, is not acceptable to someone who is paying top price for something that needs no work. Don't make assumptions yourself and then have buyers pull out on you (beware the twitchy FTB!) because you haven't covered every base. Buyers have a lot of choice these days.

Once you have that list, you can get proper quotes - no surprises!

Good Luck Project managing something like this can be a real drag - lot of travelling up and down motorways gets tiring very quickly. Hopefully the end goal is worth it

tanith

Just quickly read the thread and putting myself in your shoes , I would give your sister a realistic price of 60 to 65K maybe and let her buy it if thats what she wants.. at the end of the day she may do it up and sell for more, or keep it for her own use but I wouldn't want all the hassle to be honest and it WILL BE A HASSLE and you get possibly 65K you weren't expecting HURRAH!!!! in your hand without having to do anything. If you sister makes more in a couple years would it really bother you?

stevwarn

tanith wrote: »

Just quickly read the thread and putting myself in your shoes , I would give your sister a realistic price of 60 to 65K maybe and let her buy it if thats what she wants.. at the end of the day she may do it up and sell for more, or keep it for her own use but I wouldn't want all the hassle to be honest and it WILL BE A HASSLE and you get possibly 65K you weren't expecting HURRAH!!!! in your hand without having to do anything. If you sister makes more in a couple years would it really bother you?

:rolleyes: Being honest, yes it would bother me a little if my sister made money as she is already loaded and this would be another investment for her to add to the many others. So there is a little jealousy on my part. I take the point about being a drag, I have a young family and this project would use up LOTS of 'family' time. Whereas £60-65k would be of great help. I just don't want to act in haste repent at leasure . What is the best way to come up with a FAIR price form my sister to buy me out?

tanith

If you want my honest opinion I'd say half the estimated value as it stands.. but she will probably want to haggle...

But its your sister you are dealing with here, a family member , so what if she is richer than you , take the money and enjoy it with your wonderful family.... and that way everybody is happy. You have the added pleasure of knowing you handled a potentially divisive situation with tact and generosity and your family is intact and happy... let it go at that... you will feel better about yourself in the long run TRUST ME!!!