My parent's home was left to me, my sister and my brother. Last November (2007) we were getting ready to put it on the market for sale and had a realtor come in and do a Market Analysis. Literally two weeks later my brother died suddenly leaving the home to just my sister and I. Since it was just the two of us the house became more affordable for me and I decided to buy my sister's portion out. The house was neglected for 35 years and I spent 25K of my money doing necessary and cosmetic renovations.
Since November 2007 the market has taken a dive and property values have really gone down. When I go to get a loan and close on this house I assume the bank will have an appraisal done (?). What figure do I use when dividing the value of the house in half to give my sister her portion. The analysis that was done in November 2007, or the current one the bank will do almost a year later?
Do I deduct any of the renovations I've done from the value? Necessary and cosmetic, or just the necessary renovations (i.e. replacing molding ceiling).
Thank you!
Since November 2007 the market has taken a dive and property values have really gone down. When I go to get a loan and close on this house I assume the bank will have an appraisal done (?). What figure do I use when dividing the value of the house in half to give my sister her portion. The analysis that was done in November 2007, or the current one the bank will do almost a year later?
Do I deduct any of the renovations I've done from the value? Necessary and cosmetic, or just the necessary renovations (i.e. replacing molding ceiling).
Thank you!
