Need some advice on a trust property my family and I have inherited. There are 6 beneficiaries in the trust, including myself, for a property in the Bay Area, CA. We are in a pickle because 4 of us want to sell and get as much as possible out of the inheritance, and the other 2 want to buy the others out and keep it as a rental investment. The group of 4 wants to list the home and explore what it could sell for on the open market. The other 2 refuse to list it and are adamant that the bank’s appraisal value is “fair market value”. The problem is, the 2 “buyers” do not have an appraisal number for us to consider yet because according to them, we must agree to the buyout first before they can proceed with their bank and trigger the appraisal/loan process. Is there any truth to this or are they trying to manipulate the situation?
Considering the state of today’s market, we (the “sellers”) are almost certain that the appraised value would be significantly lower than what it could sell for on the open market. Especially considering the condition of the home (almost 100 years old, serious foundation issues, but sits on a great lot in a great location). It has come to a point now where we are most likely going to come to a disagreement, and I am afraid things will start to get contentious within the family. Bottom line is, I want what is best for me by picking the option that is going to net me the most when it’s all said and done. Are we wrong that the appraised value would be that much different from an offer on the open market (I realize it depends on many factors, but in general)? What is a “fair” buyout price in this situation, the appraisal or the open market value?
If anyone on here has any thoughts or potential solutions to our situation, I would greatly appreciate it. Thanks.