What would be the costs associated with buying my father-in-law's house from his estate?

Julie In Michig...
Both Buyer and Seller
37660

He passed away 13 months ago and we expected the house to sell for 150-200k but since values have dropped so severely is now only appraising at 110k. At higher value we could not have afforded to buy out other two siblings but at this lower value might be able to do it. We have received an offer of 115,00 but is contingency offer. Can we still buy the house from the estate? Would we have to pay real estate commission or just go through attorney handling estate? I think our contract with real estate agent has expired.

Answers (1)
Marilyn Bell
Agent
Antioch, TN
FIRST ANSWER

What kind of contingency is it? Has the offer been accepted? If the offer has been accepted, it depends on the contingency.

If the home is still available for purchase, you don't have to pay a real estate commission, however, you'll need to double check your contract with your agent to make sure it is indeed expired. You could offer a reduced commission if you're no longer under contract but would like a professional on your side to make everything goes as it should. In situations like yours, sometimes people skip important steps and it comes back later in a bad way. One example I can think of was someone who didn't get a title search (paid cash and bought from a family estate) and had a lot of issues come up later when trying to resell.

Your costs will vary depending upon if you're getting a mortgage or not. If you're getting a mortgage your mortgage person will give you a good faith estimate and this will give you a very close estimate of what your costs will be. It will include your mortgage fees, tax stamps, homeowners insurance, closing/attorney fees etc. If it only shows mortgage fees, let them know you need the WHOLE picture. A good thing about getting a mortgage is they won't let you skip a lot of important steps.

If you're not getting a mortgage first ask the attorney handling the estate if they are experienced in real estate sales. Some attorneys are very specific in the areas they practice. I love the attorney would probated my mother's estate, but often he'll refer me to other attorneys when I need an attorney for different things. If the estate attorney can't help you, ask around for referrals to good title companies in your area. Your real estate agent would be a good person to ask. There will be an attorney who does nothing but real estate documents all day long. The title companies can tell you what all the costs would be - but same thing - tell them you need to know it ALL - tax stamps, courier fees if any (hopefully not since no mortgage), attorney's fees etc.

I hope all that helps. Good luck! I'm still sorting through my mother's estate 3 years after she passed. I know it can be a lengthy and exhausting process.

Mon Oct 26 2009, 18:25

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