Joint ownership of property with brother

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dublingirl1

Registered User
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I currently own a house with my brother. However the time has come for our agreement to end. We agreed at the beginning that if either of us wanted to buy the house out that we would have to put it on the open market and we would have to match the highest bidder. I think that is the fairest - what do ye think
 
Hi dublingirl1. I've just bough an apartment with a friend and have entered into a co-ownership agreement to deal with exactly your situation (and some other - death, moving out etc). we decided we would both get a valuation from 2 different estate agents and the purchase price would be the average of the two. However if there was a large difference between the two (E25,000 or so) we would get a third valuation (and share the cost of it) with the average of all three as the final sale price. putting it on the open market seems like a hassle, will take some time and could cost you money for advertising etc.

just a suggestion, hope it helps...
 
I think a better way would be to get it valued by 3 or 4 independant auctioneers
and use the average value as a price guide.

Well, it would probably be less hassle.
 
It is a difficult one alright. However some houses are now going 30 or 40k above the asking price which is why we agreed to put it on the open market. We both looked on it as an investment so I want to get the maximum return from it as possible..
 
Hi52,
I was typing while your post went up, but i'm just suggesting pretty much the same
as yourself. Sorry for the repitition.
 
dublingirl1 said:
It is a difficult one alright. However some houses are now going 30 or 40k above the asking price which is why we agreed to put it on the open market. We both looked on it as an investment so I want to get the maximum return from it as possible..
Click to expand...

Yes, but here is an interesting question.

How long do you leave it on the open market?

You could be just about to go Sale Agreed and next another offer comes in.
This could lead to a long drawn out process. Some bidders enjoy wasting time.
 
Is it also unfair to potential purchasers to market a property and induce bidding when you have no intention to sell ? In the meantime they may have lost out on other property which has gone Sale Agreed.

On the reverse side is it unfair of potential purchasers to bid on a property that they have no intention of buying, thus out pricing other purchasers and leaving a vendor without any new interest in their property.

There is also the the cost of auctioneer ( as mentioned above) who may be less than impressed at this plan.

Do unto others and all that......
 
I think the cost (auctioneers fee's, advertising etc) and hassle of putting it on the
open market would be eating into your profit.

Most EA's will value your house for free and once you and your brother have
agreed on a fair price then all the moola stays in the family, and you don't have to
wait around for some punter to outbid some other punter on a house that's
technically "not for sale" (well at least not to them).
 
would agree with SNB that that using the highest bidder method is unfair on the people bidding on the property.
Also, are you intending to buy your brother out or vice versa? the valuation of the property by the "open market" method is appealing if your on the selling side of the transaction as opposed to the buying side. Would see the valuation method as a more equitable approach.
 
Getting it valued is the only realistic way it can work. Besides the dubious ethics of putting it on the open market, with no intention of selling, there would be nothing to stop the price getting pushed up by friends of the seller if it was on the market.
 
Put the property on daft.ie for instance at "average valuation price + say €30k" and see if you get any phone calls....
 
Just get 3/4 EAs out (free valuation) and take the average price. IMHO the hassle/expense of marketing the house will erode a lot of any possible increase.
Also - the Consanguinity relief could be worth a lot as well.
 
To be fair unless ye are selling the property outright i would do nothing for the moment. The market is very volatile at the moment and if one party pays now at these inflated prices you may be lining yourself up for some hassle with your sibling in the future.
 
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