Dear Ms. Lank: A friend is selling a two-family home. It's been on the market a few weeks. She just held an open house and received no offers. How long should she wait in today's market before holding another open house? -- K.W.
Answer: Your friend is asking the wrong question. Any real estate agent could tell her that, odd as it sounds, open houses seldom result in sales.
What she needs to do is to visit (BEGIN ITALS) other (END ITALS) nearby open houses and judge how they compare with hers, particularly in price. She needs to think like a buyer, sizing up the competition. Depending on how prompt a deal she needs, the right question is: How long should she wait before dropping her price?
Beware Of The Kids
Dear Edith: My mother-in-law has owned and lived in her home for the past 10 years. She has now reached an age where she can now longer manage the upkeep and expenses. She would like to sell and move into a less expensive home.
Her problem is that approximately 10 years ago, using a quitclaim deed, she signed the home to herself and her seven children and three stepchildren. Now her stepchildren do not want to sign the home back. One of her sons (50 years old) moved in with her and doesn't want to leave. The other children are willing to sign the house back to her.
Any suggestions how to proceed as far as listing the home for sale and being able to provide title to a buyer? Her heart was in the right place when she transferred ownership, but now there seems no way to dispose of her home. -- N.S.
Answer: You don't say if there's a mortgage on the place, so let's start by assuming it's free and clear.
Forget about forcing everyone to sign the house back to your mother-in-law. It probably can't be done and would only result in tax problems anyhow. She wouldn't have owned the whole thing long enough to use the home sellers tax exclusion.
Fortunately, your mother-in-law is still a co-owner, so she has the right to force a sale known as "partition." She can ask a court to order the property sold at auction and the proceeds divided among the owners. The others would have to sign on the sale.
She'd have legal costs, and such an auction wouldn't yield as much as a sale on the open market. If the place did sell at a profit everyone would have some capital gains tax to pay, except for her and the son who lives there. She'd be entitled to only one-eleventh of the proceeds, though of course her other children could give her whatever they cleared on the sale. But she'd be free of the property.