Selling a house can be a stressful and complicated process, especially when multiple owners are involved. Whether you inherited the property with your siblings or extended family, or purchased it with a business partner, navigating the sale of a property with multiple owners can come with a unique set of challenges. It is not easy to have a common agreement when it comes to money and emotions.
If you find yourself in this situation, it’s important to understand the key factors that can impact the sale of your property and how to navigate them effectively. In this blog post, we’ll explore seven things you need to know about selling a house with multiple owners in McAllen. We’ll also discuss how working with a professional, direct buyer can help simplify the process and ensure a successful sale for you and your fellow property owners.
1. Determine the Ownership Structure
Before selling a house with multiple owners, it is crucial to understand the ownership structure. Start by identifying all the owners and their respective percentage of ownership. In the case of joint ownership, each owner holds an equal share. However, if the property is owned as tenants-in-common, the ownership percentage may vary for each owner.
Knowing the ownership structure is essential as it can impact the decision-making process while selling the property. For instance, if one owner wishes to sell but others disagree, the sale cannot proceed without the consent of all owners and it may take some time to have everybody on board. If one owner is facing some financial issues, they may not have the luxury of time.
2. Agree on a Sale Price
Agreeing on a sales price can be one of the most challenging aspects of selling a house with multiple owners. Each owner may have a different opinion on the value of the property, and reaching a consensus can be difficult.
One option is to hire a professional appraiser to determine the fair market value of the property. This can provide a neutral, third-party opinion on the value of the property and help owners come to an agreement on the sales price. However, all parties will share in the cost of these fees, so you’ll also want to have an agreement regarding this ahead of time.
3. Develop a Sales Agreement
Once the sales price has been agreed upon, it’s important to develop a sales agreement that outlines the terms of the sale. This should include the sales price, the closing date, and any contingencies that need to be met before the sale can be finalized.
Developing a sales agreement can be complicated when multiple owners are involved. It’s important to work with an experienced real estate attorney who can help ensure that the agreement is legally sound and protects the interests of all owners.
4. Determine the Distribution of Proceeds
After the sale of a property is completed, it is crucial to allocate the proceeds among the owners based on their respective ownership percentages. This process can become complex, particularly when there are multiple owners with varying ownership shares.
Engaging the services of a professional escrow company is one option to ensure a fair and accurate distribution of proceeds. By doing so, the distribution can be managed in compliance with the terms outlined in the sales agreement.
5. Addressing Tax Implications for Your Property Sale
When selling a property, it’s crucial to consider the tax implications that may arise for all owners involved. By understanding these implications, you can take the necessary steps to address them effectively.
One important tax consideration is the potential capital gains tax on the appreciated value of the property since its acquisition. Each owner may be subject to this tax on their portion of the sale. To mitigate your tax liability, it is advisable to collaborate with a tax professional who can provide guidance on these implications and help you devise a strategy.
6. Consider Working with a Professional, Direct Buyer
Navigating the sale of a property with multiple owners can be complicated and time-consuming. One way to simplify the process is to work with a professional, direct buyer.
A direct buyer can purchase the property directly from the owners, eliminating the need for a traditional real estate agent and the associated fees. This can help simplify the sales process and ensure a quick and efficient sale. At Dolfin RGV, we work with owners throughout McAllen to help them determine a fair and successful way to sell their properties, no matter how many owners are involved! You tell us about your property, we analyse it, crunch some numbers, and make you a fair cash offer, that means no inspections or financial contingencies are involved. You will get paid via a local Title Company.
7. Choose a Reputable and Experienced Buyer
If you decide to work with a direct buyer, it’s important to choose a reputable buyer with a proven track record of success. Look for a buyer who has experience working with properties with multiple owners and who can provide references from satisfied clients. Working with a reputable buyer can help ensure a successful sale and provide peace of mind throughout the process.
At Dolfin RGV we are a local home buyer based out of McAllen that buys houses in McAllen, Edinburg, Mission, Pharr, Hidalgo, San Juan, Alamo, Donna, and Weslaco Texas. We have experience with real estate transactions in the Valley since 2008 so we have seen different situations throughout the years. If you want to talk to a local company (not some techie guy that works out behind the screen in Seattle or New York) – reach out.
We work with local reputable Title Companies to make the process legal and simple for homeowners. If some homeowners live out of state or out of the country, we can arrange for a remote closing so they don’t need to travel to McAllen to sign the paperwork. We have done it even for homeowners that live in Mexico and cannot get their visa to sell an inherited house fast.
Selling a house with multiple owners in McAllen can come with a unique set of challenges. By understanding the ownership structure, agreeing on a sales price, developing a sales agreement, determining the distribution of proceeds, addressing tax implications, and choosing a reputable buyer, you can navigate the sales process successfully. Working with a professional, direct buyer can help simplify the process and ensure a successful sale. If this sounds like an option you would be interested in, reach out to our team at (956) 904 5234 to learn more about the process! We are local! And we may be able to help.