Property valuation and probate

Woodville56

Apologies if this is misplaced ie in wrong forum but here goes !
A relative is executor (and one of a number of beneficiaries) of her late aunt's estate, which consists of a property and bank deposits.
She herself has been bequeathed the property and some cash.
There is adequate cash in the bank deposits to meet the bequests to other beneficiaries, therefore she proposes to retain the property rather than sell it off.
The issue of concern is that , in my relative's opinion, the valuation placed on the property by an estate agent for probate purposes (nominated by the solicitor dealing with the Will) appears very high vis a vis the condition of the property, sales data in the Property Price Register for the area, current asking prices for similar properties etc etc.
She is thinking of getting a second estate agent to do a valuation. Should the second valuation turn out to be lower than the first and this (lower) valuation be used for probate purposes, how would this be interpreted by Revenue in terms of tax liability? She is not seeking to havethe property valued low for tax avoidance, it's just that she disagrees with the original valuation which she thinks is way above what the property might fetch on the open market, were it to be sold.
Any advice/comments would be helpful.
Sorry again if this posting is in the wrong place, if so perhaps a moderator might reassign !
Thanks !

coylemj

In theory she could get 20 valuations and use the lowest one, the revenue commissioners don't have to be told that she got multiple valuations.

The revenue have a database of property transactions all over the country (it's now available at http://www.propertypriceregister.ie/) and I'm sure they will study the valuation she submits against the sale of similar properties in the area to make sure it's realistic, otherwise they might tell her that they disagree with the valuation.

If she is the executor then the solicitor who is doing the probate is acting on her behalf i.e. she is his client, she should instruct him to get another valuation.

It cuts both ways - she doesn't have to accept a high valuation but neither do the revenue have to accept a low one.

Woodville56

[quote=
The revenue have a database of property transactions all over the country (it's now available at http://www.propertypriceregister.ie/) and I'm sure they will study the valuation she submits against the sale of similar properties in the area to make sure it's realistic,[/quote]

Thanks for response coylemj !
My relative has also checked out PropertyPriceRegister for comparison prices. The issues with this are (1) no properties sold on same estate in 2013 thus making comparisons difficult and (2) wide variation in sale prices in the wider locality,the Estate Agent,in doing the valuation, appears to be placing more value on the location and size of the house rather than the condition of the property which requires a fair bit of work to modernise / upgrade etc ! Also, there is no guarantee that the property would see for this amount on the open market, was my relative to sell it .
Thanks again for the interest in replying !

coylemj

Woodville56 wrote: »

The Estate Agent in doing the valuation appears to be placing more value on the location and size of the house rather than the condition of the property which requires a fair bit of work to modernise / upgrade etc !

But that's your opinion and with tax to pay on the bequest, you're not exactly neutral on the subject. The cost of moderninsing/upgrading a property is easily quantifiable, unlike the value of the property itself, especially if no similar properties have been sold recently.

The estate agent must have taken the condition of the property into account but the cost of getting it up to spec. is pretty easy for a professional like him to estimate.

Get another valuation.

Victor

coylemj wrote: »

The estate agent must have taken the condition of the property into account ...

... one would hope. The estate agent may not be aware of internal problems.

Woodville56

Victor wrote: »

... one would hope. The estate agent may not be aware of internal problems.

Most of the problems are of a décor/cosmetic nature, no significant structural issues. The EA was given full access to the property and would have seen the deficits in décor etc.

coylemj

Woodville56 wrote: »

Most of the problems are of a décor/cosmetic nature, no significant structural issues. The EA was given full access to the property and would have seen the deficits in décor etc.

So the deficit (because of dowdy and tired fittings) is a lot less than if the place needed a full refit?

Unless the kitchen looks like something out of Downton Abbey, doesn't that mean that there isn't much money that needs spending beyond carpets, curtains and a splash of paint?

Some buyers prefer a house that needs touching up in preference to buying a place that was tarted up with cheap and tatty decor simply to get it ready for the market. Auctioneers typically make out of date decor a positive attribute by describing the property using phrases like 'a blank palette for a tasteful redecoration'.

Consider that as a devil's advocate argument in favour of the estate agent's valuation.