I've never posted here, but have lurked for quite a while, and I've been really impressed by the insight that a lot of you possess. You've certainly helped out many people gain financial stability and control through some of their darkest and most stressful times, and so on their behalf, I again thank you.
In August of 2015, my mother passed away, leaving her home to my two sisters and I, in (3) equal shares. The city has placed a value on the house and land at about $300,000. The remaining mortgage is about $130,000. This means that if we were to sell at this bottom dollar valuation, we could expect a gain of $170,000. Divided three (3) ways, we three children would personally gain about $57,000 each. This house is our sole inheritance.
My questions revolve around the decision to sell or keep the house.
The house is located near an ever expanding state university in a popular tourist town on in New England. Our tourist industry is booming and growing, with new businesses opening every year and property and rental costs only increasing.
I live in the house currently with one (1) of the other beneficiaries. We split the mortgage evenly, which amounts to about $550 each, or about $1100 total. A very doable sum for the size of our current abode. The third sibling lives on her own and owns a condo. She does not contribute to any costs associated with the house unless they are related to major issues (broken water heater/rewiring/etc..)
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Sibling A, me. I am a 26 year old graduate with about $35k in student debt working as a server. My income is somewhere around $38k/year. I am on the fence about keeping the house (and so why I am coming here for advice.) I realize the house may increase in value, and applying some repairs would give us a chance at a higher sale later. I am low on cash and in significant debt, but could manage on a frugal budget if I needed to. My plan is to move out of the state/country and do some budget traveling while continuing to work in hospitality for the next year or two. I also have graduate school plans, and have received admission to top programs. Yet my increased debt load would render me almost $90k in debt after receiving an MA, and that much student debt is hard to justify, especially with an MA.
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Sibling B, is the oldest sister. She is a 35 year old server (though currently unemployed.) She is 100% set on keeping the house at all costs. She has propositioned to buy out our shares (based on a valuation by an appraiser.) Yet, I'm concerned with her ability to secure a loan. She claims her boyfriend would cosign, yet he has expressed to me privately that he would not. Her ability to get a loan for that large of an amount is questionable. Her credit is fair at best.
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Sibling 3, the middle sister. She owns a condo and is very hands off with this property. She has plans to buy her own home and raise her own family elsewhere. She wants to sell, now.
My questions, then, are:
What do I do to maximize the gain from this inheritance? Do I unilaterally force the sale through the court, costing attorney's fees yet getting my cash out immediately? Do I approach sibling 2 for a loan fed buy-out? Do I go about my life with my meager income and return to this proposition in 5 years when the property value has grown (the remaining sibling occupant of the house [if I move out] would fill the remainder of the mortgage with a friend as a tenant)?
I have been thinking about this for almost 2 years, and I cannot decide what to do. I have the power to force the sale, but I don't want to lose us all money. I could wait some time, but would I be wiser to get the cash and make an investment on something else?
Worth mentioning that sibling 3 (who wants to sell) refuses to pay for any improvements to increase the value. I am willing, but it would be unfair to pay for improvements alone, only to split more profit later.
Please help me sort out this mess. Thank you all, you fine, fine souls.
Submitted March 15, 2017 at 02:55AM by throwthehomeaway http://ift.tt/2nDCvgv
