DEAR JEANNE & LEONARD: My siblings and I recently inherited a house from our father, a house that my sister's ex-husband wants to buy. He and my sister remain on good terms, and we are happy to sell it to him. Here's why I'm writing: Dad's house was assessed for $550,000. Selling it directly to my sister's ex would mean that we wouldn't have to pay a commission to a real estate agent. What's the fair way to handle the fact that, by selling it ourselves, we'll be keeping more of the $550,000 than we otherwise would?
-- Gary
DEAR GARY: Humor us: Before you do anything else, look up the estimated value of your father's home on a couple of real estate websites, such as Zillow and Trulia, and be certain that $550,000 is a reasonable price for the house. There are assessments, and then there are assessments. The one you have might not reflect the true value of your father's home.
To answer your question, though: When a house is sold without the involvement of a real estate agent, the buyer typically negotiates a small discount from what the house would otherwise sell for to reflect the real estate commission the seller doesn't have to pay. In the situation you describe -- one in which apparently nothing is being negotiated -- the fair thing to do is to split that savings 50/50 with the buyer.
One more thing: Don't forget that you will still need to hire a title company to handle the paperwork associated with the sale of the home. In most real estate markets, there is a well-established custom as to who pays for these services. The title company you retain can tell you whether, in your location, the buyer or the seller conventionally pays these fees plus any transfer taxes, and that's who should pay them in your case.
DEAR JEANNE & LEONARD: I am a widow with a comfortable estate. Lately, I've been traveling with my entire family except for one special-needs grandchild, and our next trip is by air. I realize that the chances of a plane crash are slim to none. But my son is my executor and his wife is my successor executor, and I need to find someone to administer my estate should all of us who are traveling together perish in an accident. I trust my longtime broker, but he lives in another state and is nearly 90 years old. Also, I don't have any friends or more distant relatives who are both up to the job and completely trustworthy. As for my ex-husband, I wouldn't let him near my estate with a 10-foot pole. What should I do?
--Sarah P.
DEAR SARAH: Wear a parachute.
Seriously, consider appointing a bank as your executor of last resort: This is the business that bank trust departments are in. Be sure, however, to interview trust officers at several banks and to compare both the fees each institution charges and the list of services each one provides. ... Good luck, and safe travels!
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