I was recently contacted to meet a potential home seller. A family member had passed and rather than selling, he would love to buy out the other heir.  But for how much?

Step One:  Meet with a real estate agent.  I was able to provide him with a complimentary estimate as to how much I thought the home would sell.  I also gave him what is in real estate jargon known as an estimated Net Sheet. When selling, homeowners don’t just pay brokerage fees; they also pay escrow, title and an assortment of other closing costs.  Now that he knows how much the closing costs are, he can estimate what he and the other heir would likely net in a sale.

Step Two: Contact a reputable lender and find out if he is qualified to obtain a loan in order to buy out the other heir at the amount they would likely net.

Step Three: IF the lender determines he can qualify for financing and he feels comfortable with the monthly payments, the other heir is going to likely want an appraisal or a second or even third opinion from another real estate agent, in order to finalize the sale.

Typically in any real estate situation, your first call should be to a real estate agent. We can typically then offer guidance on any next steps.

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