Expert: Dick Dennis - 2/10/2011

Question
My brother and I are trustees for a my deceased mother's home.  My brother wants to sell it and I want to buy his half from him.  What is the best way to proceed with this? If we can't come to an agreement on price, what can or can't be done?

Answer
You can do one of two ways, Fatisha. You can agree to hire a real estate appraiser and agree to purchase the property for the price the appraiser said it is worth. The appraisal will be in writing and will cost about $400, more or less. You should be able to split the cost.

Or you can choose three Realtors in town and ask each one of them to give you a fair "Estimate of Value." It may or may not be written. They may put it in a written form and be entitled a Comparative Market Analysis. The CMA actually compares other similar houses in the area and arrives at a valuation from that. They may or may not charge you for that. Unless he/she is licensed as an appraiser, a Realtor is not permitted to give you an Appraisal.

From the valuation from the three Estimate of Values, you should be able to arrive at a satisfactory figure from which you can choose a price. Then you can agree to pay him 50% of the cash value. You can negotiate. Negotiate to pay him a lesser price if he insists on cash for his interest in the property (you would then go to the bank or mortgage broker if you don't have the funds to pay him). Or you can negotiate the actual 50% value if he will agree to carry the mortgage just like a bank. You would agree to pay him X amount each month until paid or you agree to finance him out 5, 7 or 10 years from now.

There, I've given you a little more than what you asked for. I do wish you well.

Dick Dennis
dixiedee13@aol.com