Selling Parents' House

[fireant911]

My mother just passed away. Prior to this unfortunate event, she was adamant about her wishes and we (me and two other brothers) intimately knew of her desires. One of the things that she had stated was her home was to be sold and the proceeds distributed evenly among the three boys (my father passed away in 1996).

My niece has just recently graduated from college and this may be a great solution for her AND she has expressed an interest in purchasing this residence. Rather than place my mother’s home on the open market, we (the brothers) would prefer ‘keep this in the family’ since the property was purchased by my mother and father in the 50's. We will be getting a bank appraisal for this house (built in 1987) to determine the value and I am curious if anyone else that has experienced a similar situation has any wisdom to share. The house, of course, has been completely paid off years ago.

I am fully aware of the warnings about doing any financial dealings with family members but I can overlook such frustrations (trust me, my older brother’s family has not spoken to my family in four and a half out of the last eight years because of foolish and unjustified reasons). We are in process of meeting with an attorney to discuss the other monies involved but this question ONLY addresses the house. What advice and/or wisdom can others, who have already gone through the selling of a deceased parent's home, offer?

[Jim Bremner]

I'm sorry for the passing of your Mom.

Just as long as everyone can be ok with the terms I can't see a problem here.

[stomachmonkey]

Take the first fair offer and run.

[widgeon13]

Did she have a will or a trust? Is there an executor to her estate.

If she did not declare her wishes in a will there could be some significant issues.

[recycled sixtie]

Originally Posted by stomachmonkey

Take the first fair offer and run.

This is pretty good advice.
The niece could get a shot at it in the open market so you could get the best $$$ out of it and therefore you and your brothers get maximum $$ as your Mother wanted.

However first if you amicably agree on the selling price(market price) between you and your brothers then it is okay to sell to niece obviously done with a lawyer and the niece would likely take out a mortgage to finance it. If there are any arguments revert to Stomachmonkey's idea - put it out on the market. And yeah good luck!

Remember what your Mother's wishes are!

[ossiblue]

Originally Posted by widgeon13

Did she have a will or a trust? Is there an executor to her estate.

If she did not declare her wishes in a will there could be some significant issues.

I, too, am sorry for you loss.

The above post is very important. If you want to get sound advice/suggestions you need to clarify the situation a bit as mentioned by widgeon13. Depending on what the will says, or even if there is a will, you cannot know what challenges may lie in wait by members in the family.

[look 171]

I don't know that you need a lawyer. Can you sell it to the niece at an agree price (market?) and have escrow divided up the money to all three brothers. That's if your your names are on the deed or will?

[recycled sixtie]

Originally Posted by widgeon13

Did she have a will or a trust? Is there an executor to her estate.

If she did not declare her wishes in a will there could be some significant issues.

The will or trust - good point.

[TimT]

I bought the house I live in now from the estate of my grandmother. As her estate was liquidated.

I decided to take my share of the estate as the the house my father was raised in, and my grandma lived in.. The executor of the will (an uncle) and I agreed on the value of the property.. In the end after a closing the house was mine.

I did not get that cash injection to a bank account, had to make payments for a year or so to satisfy the estate

As of today, the house is worth 5X the agreed value from the estate

Also none of my siblings have any ill will towards my decision, I took a gamble and it paid..

A lot of what you will be dealing with is family dynamic...which is the craziest variable

[Gogar]

If she agrees to purchase at or near reasonable market value, I think you're fine.

I think there are some laws and/or bad tax implications if you try to sell to her at too much of a discount.

I purchased my home at age 25 from my aunt when it was left to her by my grandmother, a similar situation to what you're talking about.

I had not built a sufficient enough credit history to qualify for a standard mortgage so my aunt carried for me until I could qualify. Worked out well for me, and she made some extra dough as well.

[Rusty Heap]

tread lightly is my advice.


who in family has power of atty?



While "doing favors" and "remember Moms intent" goes far................be prepared for disruption in the family no matter how amiable people are now.


Pick your battles wisely, and let the little stuff go, but stand by your gut feel, most often it's right.

Yes I went through this last spring with a dead grandpa and his bickering sons over intent of the will and trusts.

It's hard, but do try to let the little stuff go, it's not worth it in the long run. Did I mention it's damnnn hard to not make it personal between family?

[widgeon13]

If your mother did not have a will check into "dying intestate" in the state in which your mother lived.

I pulled this off the web:

If you die without a last will (known as dying "intestate"), the state will decide how your property is distributed. In community property states, this means that your community property will be given to your spouse (or domestic partner in some states). Separate property will generally be distributed according to these rules, with variations depending on state law:

It appears that the proceeds would still go to the sons (equally split amongst the brothers) but having a lawyer involved while costly would preclude any problems down the road. There is also the potential that there could be others that have some claim on your mother's estate. You never know what will come out of the woodwork. My MIL died 1 1/2 years ago and we still haven't completely cleared up her estate.

[herr_oberst]

Fireant, I'm really sorry about the loss of your mom, and I'm also sorry about the estrangement between siblings...

I can't offer any financial advice, not my place, but I hope that it works out for the best for all concerned.

Once again, my condolences on your loss.

[widgeon13]

Originally Posted by Rusty Heap

tread lightly is my advice.


who in family has power of atty?



While "doing favors" and "remember Moms intent" goes far................be prepared for disruption in the family no matter how amiable people are now.


Pick your battles wisely, and let the little stuff go, but stand by your gut feel, most often it's right.

Yes I went through this last spring with a dead grandpa and his bickering sons over intent of the will and trusts.

It's hard, but do try to let the little stuff go, it's not worth it in the long run. Did I mention it's damnnn hard to not make it personal between family?

I don't believe power of attorney is effective following death. The executor of the will takes over (at least that was the way it was with my MIL in NYS)

[Por_sha911]

Originally Posted by widgeon13

I don't believe power of attorney is effective following death. The executor of the will takes over (at least that was the way it was with my MIL in NYS)

BTDT and this is correct.
If the estate has not been closed out. Any selling of property will have to be done by the executor and approved by the court. This takes time and the court will make sure that you don't fix the price too low (estate taxes).

[fireant911]

Yes, both Mom and Dad had a will and it is specified that the house be sold and the money divided evenly between the 'boys'. My older brother (I am the middle son) is the executor and it his daughter that has expressed an interest in purchasing the property. I would rather see that his daughter purchase this rather than it be sold to a third party... yes, even with the unforeseen difficulties that will certainly arise. Being that we all are totally clueless (at least at this point) about the procedures involved in selling an inherited property, I am just seeking some sort of guidance of those who have gone before me in a similar situation.

[Joel8005]

Get a appraisal and offer it to your relative at 5 to 10 % below appraised value

[Gogar]

Originally Posted by fireant911

Yes, both Mom and Dad had a will and it is specified that the house be sold and the money divided evenly between the 'boys'. My older brother (I am the middle son) is the executor and it his daughter that has expressed an interest in purchasing the property.

All the more for the argument that you should determine the market value and have her purchase it for that value, OR buy you and your other brother out for 33% of MV each.

Then she and her dad can work something out if they wish.

[Scooter]

If you are meeting with an attorney anyway, just discuss this issue with him/her.

[Baz]

Condolences on your loss....now do what your Mom wanted you to do.

You're welcome!