We have a family property left by my parents to 4 siblings, 2 want out.
To complete a buyout, what is needed and what will the cost be?
Wow, this scenario of yours is perhaps in my future (probably only one of my siblings will really want out). Where to begin? Assuming parents passed it down equally to each sibling (25%) and everyone is in agreement and aren’t lawyering up, it should be reasonably easy to figure out a process. Probably want to draw up a contract of some sort, where you lay out the transaction and how this is final and done (no future issues). I suppose getting several appraisals done, maybe one from the buyers’s side and one or two from the sellers’ side and you hammer out a price that is fair to everyone and go from there. Include the cost of hiring a title company or RE agent/lawyer who can do the RE paperwork for you. Hopefully you can find someone who can do it for a flat fee for you since there is no work other than the paperwork.
Good luck! Let us know in general how it goes down.
Ok, I checked with my mortgage contact Tracie (she handled it since she got me my loan) when I bought the Fremont home direct from the owner. I got a blank purchase contract form from a buddy and we let the title company handle everything else. I was charged about close to $3k. Tracie acknowledged that was slightly high, thinks maybe $1500-$2300 should do it. YMMV again…
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All depends if you all can agree on the value…Use a BPO
from a realtor or hire a professional appraisal…
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Oh, if you are local Bay Area I have a family friend who owns an appraisal company. Maybe I can swing a deal for you, assuming local of course. PM me if needed…
Price is established…
So…
Attorney to handle the contract of sale and a title company to handle transfer ?
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Man, smooooooth sailing. Curious, how did you four arrive at a mutually agreed on price?
Good plan
Came at it from all angles… appraisal, market analysis and intuition. Made up the difference in what we were able to raise for the buyout by retaining small ownership positions. So far, th last thing is to determine what real expenses will be and how to split them
If any of you have a summary of what is required I would be grateful.
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Did you by chance factor in the value or added benefit of the new owners retaining the low property tax basis???
Speedy and basic, it’s anyplace around two to five percent of the cost of the home. Banks are required by law to give you a Loan Estimate, which will incorporate what the end costs on your home will be, inside three long stretches of getting your credit application. In any case, these are only a gauge, and a considerable lot of the expenses recorded can change.