Selling the childhood house
Friday, April 26, 2019
When Trump got elected (this is not a political post, so please don't disagree on statements made later), my brother, who is a German historian, called us and told us, he was planning on moving out of the country. He felt the climate was similar to German, 1933, right before it became unsafe for Jews.
At that time, he asked all of us siblings (there are 4 of us) if we would be willing to sell the family house. My parents died in '94 and '96. And the house has been rented since ~2002. It has consistently been under rented but my oldest brother felt he would rather have lower rent and always have the house rented. In the last 17 yrs, the house has only been not rented for ~2 days. There may have been 1 month between renters. The rent is about $1600 but rent in this neighborhood is going for about $3000. When I have talked to my oldest brother about low rent, I get told he would rather have lower rent and always rented and tells me he is the executor. It should be noted I am the "baby" of the family, being 6, 9, and 12 yrs younger than all of them.
Nothing happened in the last 3 yrs. It should also be stated that my oldest brother, 3 yrs ago, talked about also selling his home where he used to teach and his primary home, where he lives full time. None of these homes has been sold either. But I don't own those homes and don't really care. I also can't say anything because he will tell me it is none of my business. And in most respects, he is right but now he is saying he has to sell the family home, as he and my middle brother both need the money.
When I expressed that I would like to wait a year or two, so we don't lose financial aid for my kids, one of whom goes to a $70,000/yr school, I was told too bad. Both my brother's need the money. Well, upon talking to the middle brother, he stated although he does need the money, he would also lose financial aid and knows that if he got a large sum of money, he would just blow it. So he prefers to keep the money tied up in the house and we get rent! We (my middle brother and I) also feel it is a bad idea to have the house sold (if we sell it) by the property manager, who has been overseeing the property for 17 yrs. Although, as a property manager, he is required to be a licensed real estate agent/broker, he has sold exactly 1 house in 5 yrs. I don't have the confidence that he won't look out for our best interest. He has been screwing us for (in my opinion) for 17 yrs. When my middle brother told my oldest brother that we aren't happy with his pick of who to sell our house, he basically said too bad, "this isn't open for discussion". At which point, my middle brother said, "You are right, I can shut this thing down now and not sign off on this sale." Now the middle brother and I are looking if we can refinance and buy out the 2 older siblings. My oldest brother told me how he needs this money otherwise he will need to get into his retirement money. Well, he is 65 years old and retired ~3 yrs ago. Isn't that what the money is for? He is retired and it is meant for that. It isn't meant to be saved and given to the kids after he dies. But I can't say that, as it would be deemed not my place or concern. Except it is my concern if we have to sell the house. He has 2 other houses he can sell. One of which he doesn't live in, where his old (retired from) job was, 6 hours away from where he lives.
The other option if we sell, we were told by our accountant and financial college adviser was we could buy a different property. Well, Hannah's college requires the students to live on campus all 4 yrs but after 2 yrs, a student can petition to live off campus. Hannah lived on campus this past year, as a freshman. Well, since Sept, she has had an issue with cross contamination. We had to step in since Oct. It never got better even though we spoke with food services and the dean of student affairs on NUMEROUS occasions. So when she applied to live off campus her sophomore year, she has been approved. But not many students are approved. Now she is looking for a place and roommate to make it financially feasible.So maybe we will take the money and buy a house near campus. Hannah says that furnished houses are so popular that they are usually never listed and rent quickly. So she may be able to get a roommate easily. This would also allow her to puppy raise since we own the house. And the following year, if the rent is cheap enough, her friends may be able to move into the house and then the rent would be covered. And after she graduates, we can either sell or continue to rent it out. The biggest issue with this scenario is by buying a new to us property, taxes will be WAY more then what we are paying on my parents house.
We have an appointment to meet with our accountant tomorrow and hopefully, he has contacted a mortgage broker to see what our options are and what we can afford.