Selling share of Tenants in Common - Posted by Jeff

Posted by John Merchant on March 17, 2006 at 20:36:41:

I once had an elderly woman bring in a property deal kinda like this.

Her “loving” sister back in Iowa was generously offering to buy my client’s share in their deceased parents old house…for $500, which sounded like $5M to my poor client.

Looking at the paperwork it seemed to me that my client was likely being taken advantage of, big time, by the sister back in Iowa, who lived next door, knew the local values, etc.

I called a local RE Broker in that town to get a rough idea of what the house might be worth.

His opinion was $35,000, meaning my client’s half interest was worth about $17,500 and I told my client to hold up a little bit while I communicated with the sister.

We soon settled that for upward of $15,000 to my client.

So her piddling fee to me made her a good bit of money.

So I’d suggest you do a little homework before you decide to sell your interest, and maybe get some help figuring out what your whole property is worth.

Some experienced local Agent could probably, for just a few bucks, find an approximate market value for you so you don’t give away the farm.

Once you know the value of the whole, you can quickly see what your proportionate share is worth.

Selling share of Tenants in Common - Posted by Jeff

Posted by Jeff on March 17, 2006 at 06:23:42:

My brother and I hold an equal share in a single family property. I need to sell my share to get the cash. My OTHER brother wants to buy me out. Both are a little sharper in the financial arena than I am. Any tips on what I should be conscious/cautious of? Or any ideas where I can go to learn about legalities of someone buying your share in a property? I’d like to have an overall before I get a lawyer involved , that is, if I even need one. (FYI loan is $133K and property is valued at about $235K. It’s a rental with a negative cash flow) Thanks for any guidance.