Willed property valuation

[Frustrated!]

Hi there! My brother in law is completing probate for my mother's will and her old property is being split between 3 beneficiaries. What concerns me is he has said that 5 estate agents have valued the property at 315,000 pounds yet when I do an online search (be that Zillow or whomever) the valuation comes in at 365,000. Is there a reason an agent would undervalue a property for estate purposes? Thanks in advance!

[atticus]

Is there any reason that an online valuation (have you read the caveats and disclaimers?) should trump agents' local knowledge?

Isn't the most important valuation going to be the price for which it is sold in due course?

Is there actually an issue here?

[dslippy]

Estate / Probate valuations are regularly at a lower level than standard valuations. They are corrected on the submission for the grant to whatever te price actually was.

[Frustrated!]

Dslippy thanks. Does this mean when estate is settled the valuation will be the higher figure of 365000 or 315000 as 50000 is quite a lot of money and my mothers will and probate has been going on since end of November 2020 due to covid and arguments with nursing home! Thank you.

[Frustrated!]

Is there any reason that an online valuation (have you read the caveats and disclaimers?) should trump agents' local knowledge?

Isn't the most important valuation going to be the price for which it is sold in due course?

Is there actually an issue here?

Thanks for your reply and yes, there is a small issue of 50000 pounds difference in valuations and even "local" estate agents would value it at more. The house is being sold to my sister and brother in law (probate handler) and I'm sure they'd love to get it at 50,000 pounds cheaper.

[atticus]

Ask for a formal valuation by a chartered surveyor.

Is the 'probate handler' the executor?

[dslippy]

There are two valuations. What values is now to be used for probate purposes, and what values is to be used when the property is sold.

You pay tax at first on the basis of the probate valuation, but then you pay the tax based upon the actual figure for which the property is sold.

[Frustrated!]

Ask for a formal valuation by a chartered surveyor.

Is the 'probate handler' the executor?

Thanks for reply. Yes, probate handler is executor as my sister handed the executor role to my brother in law as she believed she couldn't handle the role of alternate executor. My other brother and myself live in Japan and the US respectively.

[Frustrated!]

There are two valuations. What values is now to be used for probate purposes, and what values is to be used when the property is sold.

You pay tax at first on the basis of the probate valuation, but then you pay the tax based upon the actual figure for which the property is sold.

The probate has been ongoing for over 2 years so no valuation until recently as not far off being finalized. As the property will be taken over by my sister and brother in law to rent then the property is technically not being sold but my sister is having to buy out myself and my brothers share.

[atticus]

Executors have fiduciary duties, and should take care, not least when selling trust property to themselves.

[dslippy]

As executors they / you have given certain oaths which they must comply with. As Atti says, a sale to the trustees risks breaching those oaths.