Why would the heirs to an Estate sell a Property below fair market value?
That’s a really great question and there are many answers – or rather there are many factors that make it quite likely to find property below fair market value. With personal property, it’s pretty obvious. A deceased man’s wife and children may not share his passion for hobbies like fishing, coin collecting or rebuilding old sports cars. They may have little or no interest in any of his “old stuff,” nor any appreciation of its real value to a collector. Similarly, a widowed husband and his children may have little or no interest in a collection of fine china or Lladro figurines. In that case, they may sell far below fair market value. The same may be true for antiques, jewelry and many other items. When it comes to houses and real estate, there may be even more reasons. The estate may have to sell the property to pay off debts, or the heirs may want to sell the property so they can divide the proceeds. If the property needs maintenance or repair before it can sold at fair market value,
