How to avoid disputes over real estate inheritance

In communities of heirs, it is often unclear what should happen to the jointly inherited property. This frequently leads to disputes. In this interview, you will read about a typical customer experience. For data protection reasons, the names have been changed.

Initially, Josef Beiersdorf and his siblings couldn't agree on what to do with their jointly inherited property. His sister Stefanie wanted to sell, while his brother Johann wanted to move in. A conflict seemed inevitable. In this interview, Josef Beiersdorf explains how the worst-case scenario, a forced auction, was avoided.

Mr. Beiersdorf, what was the challenge with your inherited property?

The challenge for my siblings and me was to reach an agreement. My brother Johann would have liked to move in. My sister Stefanie supposedly knew exactly how much the property was worth and therefore wanted to sell and get everything over with as quickly as possible.

After all, we had to cover the ongoing costs, and Stefanie didn't want to pay for a property that her brother would soon be living in. Johann, on the other hand, claimed the property was much cheaper than Stefanie said. Stefanie was on the verge of filing for foreclosure.

How did you approach the problem?

I did some research first and learned that a forced auction often results in financial losses. Stefanie didn't want that either. To put things on a sound footing, I suggested having the property appraised by a local real estate professional. They could tell us what the situation was. I then searched online for "property valuation" in our region and found the website of a real estate agent who offers free property valuations.

Whose valuation proved correct

First, he inspected the property, taking all its special features into account and also checking the necessary documents. The result was that neither of them was right. The property was worth less than Stefanie thought, but more than Johann believed.

The real estate agent was able to explain to us in detail, logically, and comprehensibly how the property's value was determined. In the end, that even convinced my siblings – and my sister is always hard to convince.

What solution for your inherited property were you ultimately able to agree on?

The real estate agent first explained in detail what options we had with the property. It became clear that paying Stefanie and me out exceeded Johann's budget – even though the agent was able to advise him on various financing options and connect him with an independent financial expert.

Ultimately, Johann had to accept the sale. Naturally, this wasn't easy for him. But the real estate agent handled the situation very sensitively. It was clear he dealt with similar cases frequently. In the end, Johann was satisfied with the proceeds. And the agent even helped him find a property that fit his budget. Because of the sale of our inherited property, he had a larger equity stake, which, of course, greatly helped him with the financing.

Are you unsure what the best solution is for your inherited property? Contact us! We'd be happy to advise you.

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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