My father in law past away February of this year and left his Atascadero home in a trust for his 3 children,

Asked by Eileen Smith, Atascadero, CA Thu Aug 7, 2008

My father in law past away February of this year and left his Atascadero home in a trust for his 3 children, my husband (the executor of the trust) and his 2 sisters. The home is on the west side of Atascadero. It is 1650 sq.ft, and is on about 1/2 acre. 3 bed, 2 baths. We have had an inspection and it needs to be tented, needs a new roof and the deck that wraps around the back of the home needs replacing. No remodeling has been done to the inside of the home since his parents bought it in 1988. The home is completely paid for.
When the property sells it is to be split evenly between all siblings. My husband and I are paying for the current upkeep of the home, which is roughly $350 per month. We have kept utilities, cable, etc going as we go up there when we can. We live in San Diego.
Is it best for us to sell now with doing the minimum in repairs or hold onto it and sell in a few years?

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Katherine "K…, Agent, Templeton, CA
Tue Jan 21, 2014
Good Day Elieen,
Sorry for your families loss. The market in 2013 showed another year of rising home prices. I have lived in SLO North County for 42 yr and work for a local Brokerage in Atascadero. Atascadero is unique in that it is not your typical layout of a town. It is limited in space to grow. In the North County the home prices are 2nd highest only to Templeton. Your decision to sell is best based on your families needs and wants. I would suggest a conversation with an estate planner to see if what your tax liability will be and if you would like to sell in Atascadero. and move the funds to another investment closer to you. Please feel free to call or email with any questions you may have. I am happy to be of service.
Katherine "Kat" Breig
BROKER Associate
YORK Real Estate Inc.
BRE: #01250998
(805) 235-7698
Fax: (805) 466-3256
What is ..
0 votes
Wendy Henzler, Agent, Paso Robles, CA
Mon Oct 28, 2013
Hi Eileen,
Was wondering what you decided to do with your fathers property? I have a couple buyers I'm currently working with, looking for a home on a good sized lot. Please contact me if you've decided you may like to sell? I would be happy to provide you with comparable sales in the area, so you and your siblings can make an informed decision as to what the home should be sold for.

It is currently a sellers market so it's a good time to sell. Although, you need to consider the tax implications and other things that could impact the proceeds of the sale. Also if rented you will need to consider the repairs needed in order to make the home safe and habitable.

If you have additional questions feel free to check out my website. Thank you for your inquiry.
0 votes
Ruth and Per…, Agent, Los Gatos, CA
Fri Mar 8, 2013
Hi Eileen

The market should do well for a few more years.

But do the Sisters want to hold on to the property or have it sold ?
Are you thinking of buying out your sister-in-laws.

It all comes down an Issue on "needs", who needs the money.

As many agents from the Local Area have responded, get in touch with them
and get a reality check.

Figure out your Tax Implications, presently you have exclusions of Taxes upto $5M,
once it become a rental, there are taxes involved, which can be very costly.

Best regards
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0 votes
E, Home Buyer, 93465
Fri Mar 8, 2013
I'll buy it, I own a few out that way!
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Rosemary0155, Home Owner, Atascadero, CA
Tue Jun 5, 2012
If you can afford to make the necessary repairs, personally I would advocate you keep it. Also, if you are not needing to use it, you could place it on the rental market with professional property mgt. and have a property generating income that could support the costs of the repairs as well as supply any and all beneficiaries of the trust some income as well. You certainly won't find property taxes any cheaper on any property similar if you were to go out to replace it. If you plan to keep it, then make it pay for it's upkeep and repairs. It would benefit you and all concerned to maintain detailed accounting records for any and all costs of Maintaining the property to assure things are split evenly amongst those who stand to inherit, also should share in the costs of repairs and improvements. A good CPA too, should you rent it, and create the annual reports for any profit and loss to be equally shared. Good luck.
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Keith Sorem, Agent, Glendale, CA
Fri Apr 3, 2009
I would recommend that you first consult a probate attorney and your CPA regarding an potential tax issues that might arise.
Second I would suggest that you have your CPA and a Realtor prepare a set of possible options with dollars attached.
If a property is vacant there may be an insurance problem, so you need to make sure that you have liability and fire insurance in force. Normally vacant properties are not insured after 30 days. Ask you insurance carrier regarding options.

I also recommend that you have the options passed among the three heirs. There might be one that needs cash now. If so, how would that be handled.

You will want the Realtor to perform an Estimate of Fair Market Value. Less formal than an appraisal, it will tell the approximate range of value for the property now. Then, projecting forward, you can make predictions and estimates.

It is possible that one heir might want to sell their stake to you. How about the on-site property management? The Realtor might be able to recommend a company.
If you opt to rent, what repairs would need to be done. If rental income creates in income property, what are the tax implications? Could the rental income offset the repair costs?

Lots to think about. Come up with a plan that all the heirs agree, put it in writing, know the tax implications when you sell, know what will happen if.....something else happens.
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Lisa, Home Buyer, Atascadero, CA
Fri Apr 3, 2009
As a recent home buyer in Atascadero and careful consumer I would hold on to it-we were in a lease option house in August of 2007 the purchase price would have been $550,000 after one year and the economic downturn it was reduced to $335,000-needless to say we bought something even more reasonable at $305,000 our neighbors had paid $380,000 several months before-none of us are knowing what to expect with the economy but I have lived on the central coast my whole life and the prices of houses can be extremely outrageous-if it is not too much of a hassle for you to keep it for a year or so I would say to keep it-there is very little "decent" stuff to buy in Atascadero it is all fixer upper junk or extremely high priced and I think it is a desirable cit- I am not sure why but there is not a huge buyers market and what does come up for sale sells fairly quickly-good luck
0 votes
Connie Winst…, Agent, Arroyo Grande, CA
Tue Aug 12, 2008
First of all, my sympathy for the loss of your father in law. It's hard to lose parents. I've experienced this myself. I'll be happy to assist you in any way I can. I have had my license since 1978.

Is is best for us to sell now? That is the 64 million dollar question. I tell my sellers this .... "It's not the BEST time to sell, but it may be the best time for YOU to sell". There are so many variables involved.

Is it vacant? Is someone watching it for you? Do you worry about it? Have you considered renting it out. My company is a full service real estate company and we also do property management. I'd be happy to discuss this with you also. We could do a short term rental until you make up your mind about it. I will be in San Diego the week of Aug 25th visiting my brother and his family in Spring Valley if you need me to bring
anything down for you or if you'd like to meet in person to review comps or meet me in person.

Or I'd be happy to run some comps and email them to you right away. I'd be happy to list your home if that is what you decide to do. You may want to talk to your tax person and your other siblings. Like I said, some
children want to just be "done" with this kind of situation and others want to hold on as an investment. I am
here for you, if you decide to sell. Check out my company website at
Again my condolences.
Connie Winstead, Realtor
Signature Properties
0 votes
Jerissa Park…, , San Luis Obispo, CA
Thu Aug 7, 2008
I think that since you and your husband live in San Diego it is going to be important to for you to know what the house is worth. Since no one has a crystal ball to tell you what the market will do a year or two from now, a local realtor, like myself, would be able to do a comparative market analysis for you now and keep you informed about the trends in the market. Keeping up to date with the market trends will help all parties involved decide when the best time would be to sell the house. Additionally, I would be able to assist you with finding qualified contractors with reasonable rate, ensuring repairs are done and even help with property management. The buyers are definitely out there now and with interest rates being fairly stable and pretty good, we have seen the buyers moving to purchase properties. You never know...this could be the right time for the house to be on the market.

I live in Atascadero and know that market well. I would be happy to assist you. I can be reached at 805.596.4479. Please feel free to contact me with any questions or concerns. I would be happy to provide you with that comparative market analysis as well as give you more information about other homes which would be comparable to yours.
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Bob McClure, Other Pro, Walled Lake, MI
Thu Aug 7, 2008
good morning....if you are planning on trying to hold onto it until the market comes back....i would rent it to have a lighten the burden of expenses...also.if you and your husband, or either of the other two sisters would like to buy it, and either live in it or rent it can do so very easily...each of you already has a 33.3% equity position in the home...if the trust was recorded, or will be recorded...all of you already own the home, and would therefore constitute a refinance rather than a cash the other two parties out. i hope that helps.bob mcclure- mortgage now - farmington, michigan (248) 974-4444...i have almost 14 yrs. experience.....i am licensed in your state and 18 other ones, and can close you in your own anytime......
0 votes
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