Note: BCP Real Estate is not a law firm and its employees/owners are not acting as your attorneys. The information contained on this website is provided for educational and informational purposes only and should not be construed as legal advice on any subject matter.
When we make an offer to buy someone out of a tax lawsuit, the dollar amount can range widely from one situation to another. Sometimes our offer is a few hundred dollars. Sometimes it’s a few thousand.
A common question we hear is, “Why is this offer so much smaller than the property’s market value?”
It’s a fair question, and here’s how it works.
When you’re a co-owner of an inherited property, you don’t own the whole property. You own an undivided interest, which is a fractional share. The more heirs the property has been passed down to, the smaller each individual share becomes. A property with three heirs gives each person a third. A property with twelve heirs spreads ownership much thinner. Your offer reflects the size of your individual portion, not the whole property’s value.
The property’s overall market value matters too. Higher-value properties produce larger overall offers. Lower-value properties produce smaller ones.
There’s also the cost of clearing the title. When we buy a portion from one heir, we still have to work with all the other co-owners, pay off the back taxes, cover legal fees, and resolve the lawsuit. Those costs come out of what we can pay for individual portions.
The size of the offer isn’t a reflection of how much the property is worth as a whole. It’s a reflection of what your specific portion is worth after all the work it takes to clear everything up.
For many of our clients, the value isn’t just the money. It’s being out of the lawsuit and not having to deal with the situation anymore.
If you’re looking to remove yourself from a lawsuit and get paid for your interest, no cost to you, call or text us at (469) 708-8003 for an offer today.
Leave a Reply