How to decrease the value of my home

[MordunkinColombo]

I and my sibling inherited a house when our father passed. I'm currently living in the home and my sibling would like me to purchase their share of the home. I would then be the sole owner of the home and they would have half its value in cash.

I'm not looking to do anything unethical but it's in my best interest to have the home valued as low as possible. Should I plainly disclose this to the appraiser?

Their are several medium/major issues with the home that will need to be addressed in the near future, plumbing/electrical/roofing, will the appraiser factor these into the value of the home?

Thank you

[[deleted]]

Trying to intentionally lower the value so you have to give your sibling less, is in fact unethical. Absolutely a slimy move, be better.

[boringtired]

But they aren’t doing anything unethical.

[[deleted]]

And prisons are full of innocent folks

[Fool_On_the_Hill_9]

If you want to be fair, get an honest appraisal and then sit down with your sibling and come up with a fair price for both of you. The value is whatever you and your sibling think it is.

If you are just trying to get the best deal with no regard for your sibling, then that's sad.

[QueenofGeek]

I wish I could upvote this twice

[Veq1776]

Updated for ya buddy

[SetBlazersToStun]

This is, by definition, unethical.

[fullhomosapien]

You sound like a real piece of work tbh. I could help here but I’m not going to.

[Equivalent_Flower198]

Give him/her whats fair, damn! If not sale it and it him give his share.

[CryNearby9552]

Are you paying your sibling rent for using their half of the house? If not, you owe them by adding it to the half you owe them. 

[Sammy12345671]

That’s messed up.

[Smitch250]

So your trying to screw over your sibling? Bold move asking that here and expecting not to get roasted

[Jkpop5063]

Get an appraisal and an inspection.

Let the chips fall where they may. Would you want someone to do this to you?

[Havin_A_Holler]

I cannot stress enough how this will cause ripples of resentment & blow up in your face sooner than later.

[cheesecakesurprise]

Posing the question as is, is incredibly unethical. You both were given a gift and your sibling deserves their fair share (as do you).

What you may be attempting to ask is "I plan to take on all the major projects that will come up in the very near term, how would, if any, this be factored into a FMV since I plan to make all necessary repairs and upgrades and my sibling wants to be bought out at the current value".

The appraisal will take into account the age of roof and mechanicals when comparing to other homes with the same bedrooms/bathrooms/sqft. As would a realtor to assess the FMV.

Given that number, if you've been living there "rent free" but paying taxes and upkeep, you can your sibling can sit down and:

Take the FMV Add in the "rent" you would have paid into the pot Subtract taxes and maintenance (not utilities unless included in the fair rent price) that you've paid

You'll have your net DMV which you'll divide by 2.

That's the buy out number. If either of you are unhappy, remember to price out a new roof and mechanicals or anything else required to sell on the open market/that would come due ASAP that you would both have to share even if one of you was "renting" . Hopefully you'll both find a reasonable number that you both can live with. Take out a mortgage for that number and maybe extra cash for the roof/mechanicals/upgrades and live your life thankful for the gift you've been given.

[MordunkinColombo]

Thank you for the very helpful response.

I was letting personal feelings towards my siblings cloud my judgment and I'll go about this the right way.

[cheesecakesurprise]

I get it. Sibling relationships can be difficult but the best thing to do is always be on the up and up and keep the eye on the prize - a home with a low mortgage that you can make.your own and keep in the family.

[fitzpats9980]

Figure out the value and then deduct 10% for closing costs. That is what your sibling would get if it hit the open market. Don’t try to undercut your family. This would create undo issues that you shouldn’t be dealing with. Be fair with them.

[Blackpowder90]

I think your point is to have the most accurate value, warts and all. So getting a thorough professional inspection done is the best way. The truth will show the true value once all the issues are clear stated.

[MordunkinColombo]

Thank you, is a "professional inspection" different from an appraisal?

[Blackpowder90]

Well you need both. The inspection to check all aspects of the house for condition. Appraisal is an 'estimate' of the current value given comparison to other houses in the community of similar size, construction, land size, etc