One of the most common material things that children inherit from their parents is their family home. In the case of siblings, they often get an equal share of the family home, which can pose a bit of a problem once one decides to let go of this shares and sell it his other siblings. At times like these, it is important to arrive at the true market value of the home to make sure that no one is cheated during the transaction.
According to Steve McLinden of Bankrate, Inc., a comparative market analysis (CMA) is still the single most reliable way to determine property value. This can be derived from an active veteran real estate agent, the person who is more up to date on the market than anyone else. Some of the things considered in the CMA are the curb appeal, condition, lot size, location, number of rooms, architectural design, market supply and demand, and other similar comparative sales.
Another method is tax assessment, although it comes with serious limitations. For one, taxing districts tend to overvalue or undervalue homes based on general economic factors that are sometimes not even applicable to one's neighborhood. Taxing districts also cannot go inside homes, thus compromising the accuracy of the assessment.
Once the property's value has been appraised and the deal has been completed in cash, the seller will accomplish and sign a quitclaim deed that transfers his interest in the property to his siblings upon receipt of funds. A basic contract explaining the terms of the sale is necessary in order to avoid future complications.
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