Sister buying me out of parent's vacation home
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Anonymous
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Both of my parents have passed away and my sister and I now own their home, which is in a vacation area of the midwest. I have no interest in keeping the home but my sister would like to keep it. My sister and I aren't particularly close, but have worked well during the recent deaths of both of our parents. She does have a reputation for trying to take advantage of me, which makes me and my husband a bit crazy. But honestly, I'm happy that the house will stay in the family and get enjoyed by my nieces. (I don't plan to ever use the house.)
I'm interested in people's thoughts on how much we should ask for her to buy me out of the house. We talked to two real estate agents who said that they would put the house on the market for $350,000. The house would likely sell quickly at that price since there are so few homes on the lake on the market. Assuming we deduct six percent from the price because we won't be using a real estate agent, that brings the price down to $329,000. With all the other various closing costs that we might avoid and assuming a family discount, should we set the price at $300,00 and just have her pay us $150,000? She's received about that much from my parents' estate but may have to take out a small mortgage. If you were in my shoes, what would you do? |
Anonymous
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Can she afford that?
His old are you guys? Is this a place your sister visited often/lots of memories? Did your sister help care for your parents since you don’t live there? |
Anonymous
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$164K
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Anonymous
| $150k sounds reasonable to me. I’m in a somewhat similar position with a sister and a family home, and that’s along the lines of what I would want to do. |
Anonymous
Yes, she can afford it. We are definitely a lot more well off though, so I don't want to look like I'm trying to squeeze every last dollar out of this. But given her history of taking advantage of me/parents, I don't really just want to give her the house. (For example, I know that there are items in the house that she will sell that will generate at least $10,000 and she will never mention/split it with me.) We are both in our 50s. My sister did visit it a lot. She has a lot more fond memories of it than I do because she and her family used it as their primary vacation spot for years. (I moved to the east coast after college.) She and I both helped with our parents care. She lives about 5 hours away from my parents' home. |
Anonymous
— none of this is relevant. |
Anonymous
+1 |
Anonymous
+2 |
Anonymous
| Fine or be decent and reduce it more so she does not need a mortgage. |
Anonymous
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Reputation for taking advantage of you?
Sounds like you and your husbands allow that. Anyway, I would keep the share a few years and let it appreciate more and then use it to fund college or retirement. |
Anonymous
You have no obligation to ensure she doesn’t need a mortgage. I think $150k is fair, plus whatever possessions in the house you’d be interred in (perhaps there are none). |
Anonymous
^^not this. go with the $150,000 — although I’m curious how this plays out if she tries to counter. Or if she’ll try to get you to basically hold the mortgage loan and she’ll want to make payments to you. which seems not ideal. |
Anonymous
| Real estate agents aren’t appraisers. |
Anonymous
| Get it professionally appraised (not by a real estate agent), reduce the appraisal by ten percent, divide that in half, tell your sister to pay the half plus the costs of transferring ownership and that’s that. |
Anonymous
| Depending on how small of a mortgage she might need, a bank might not do that. |