Sister buying me out of parent's vacation home

[Anonymous]

Anonymous wrote:Depending on how small of a mortgage she might need, a bank might not do that.

Is the house currently covered by a mortgage? Or is it currently owned by the two of you mortgage free? If it’s the latter, just give her a little mortgage yourself and cut her a break. It won’t kill you. Why let a bank make money off of your sister when you can make money off of her?

[Anonymous]

Anonymous wrote: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.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote: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?

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.

I’d say $150 and let her go as low as $125.

My H’s brother is much like your sister.

$25K to us is not worth it and he feels like he got something out of it. Don’t know what happened to make him need to feel he always got the better end of the deal.

I don’t have the energy to care.

Though if she tries to go lower than $125 I’d say nah let’s just sell it.

[Anonymous]

Anonymous wrote:$164K

This. Why would you give her a discount?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Depending on how small of a mortgage she might need, a bank might not do that.

Is the house currently covered by a mortgage? Or is it currently owned by the two of you mortgage free? If it’s the latter, just give her a little mortgage yourself and cut her a break. It won’t kill you. Why let a bank make money off of your sister when you can make money off of her?

Also, this. You can loan her the money at a low rate, just make sure you have it recorded and in writing so you can write it off your taxes when she doesn’t pay you back.

[Anonymous]

Remember it’s not just your parents’ home, but it it’s what they wanted to leave behind for you and your sister. In other words, they wanted to leave you something of value. You’re not obligated to sacrifice financially because your sister wants the home.

Have it appraised and then split the difference. It doesn’t matter if she needs a mortgage for it. Does she own another home? If this is a vacation home for her, that’s a luxury item most people don’t get to have. You are not obligated to subsidize her luxury item. Be fair to yourself and your own kids if you have any.

[Anonymous]

Wonder if sister expects OP to just let this arrangement go on without any buyout.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Fine or be decent and reduce it more so she does not need a mortgage.

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).

Mom was a hoarder!

[Anonymous]

Anonymous wrote:Wonder if sister expects OP to just let this arrangement go on without any buyout.

Honestly, this is one reason that I'd like to get this wrapped up as soon as possible. The other reason is that my name is on the title (no mortgage) and if any of her friends has an accident/injury on the property (which wouldn't be impossible given their history of drinking/boating), we are the ones who would be sued because we have much deeper pockets.

They are having a new boat delivered later this month, so I'm not particularly worried about them paying for the buyout. I just don't want to look like a total jerk about it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Fine or be decent and reduce it more so she does not need a mortgage.

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).

Mom was a hoarder!

Luckily my parents were not hoarders! But my father had valuable hunting rifles that my sister has taken home to have her boyfriend sell. I don't have any expertise in this area and just know their listed value. I'm assuming that I'll never see this money.

[Anonymous]

Is there some period of time after this that if she sold it you would be okay with it? Obviously the week after you give up the $14k difference would aggravate you. I’d want whatever that time period is in writing with a new division of profits if she sells then.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Fine or be decent and reduce it more so she does not need a mortgage.

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).

Mom was a hoarder!

Luckily my parents were not hoarders! But my father had valuable hunting rifles that my sister has taken home to have her boyfriend sell. I don't have any expertise in this area and just know their listed value. I'm assuming that I'll never see this money.

You are being a pushover. Tell sis that you want $150k and 50% of the value of the guns. Put it in writing. Who cares if she needs a mortgage? As you mentioned above, you are putting your family at risk by maintaining your ownership of the home. Take care of this asap.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Wonder if sister expects OP to just let this arrangement go on without any buyout.

Honestly, this is one reason that I'd like to get this wrapped up as soon as possible. The other reason is that my name is on the title (no mortgage) and if any of her friends has an accident/injury on the property (which wouldn't be impossible given their history of drinking/boating), we are the ones who would be sued because we have much deeper pockets.

They are having a new boat delivered later this month, so I'm not particularly worried about them paying for the buyout. I just don't want to look like a total jerk about it.

Do you have a liability policy on this property? You should have your own policy that would cover this risk. You need to get out of this arrangement.

[Anonymous]

Let her buy you out at $150k and be done with it. You get the funds, she gets the house at a little bit of a discount, and you all can move on.

[Anonymous]

Anonymous wrote:

Anonymous wrote: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.

+1

+2. I would keep this whole thing as a professional and objective as possible. Dull and by-the-book should be your goal.

And for goodness sake, do not "do a mortgage" with you sister. Even if she was the most stable, conscientious debtor imaginable the chance of something going sidesways over 10+ years is great, and then what?