Buy out real estate partner in a slow market

DEAR BOB: I own 50 percent of a property with a partner. In February 2006 we hired an appraiser who valued the property at $295,000. But with the recent change in the local real estate market, only three comparable properties sold nearby in the last six months for an average of $260,000. What would be a fair price to offer to buy out my partner? --Liliana F.

DEAR LILIANA: From your description of the situation, if the recent sales of those nearby properties are comparable to yours, it sounds like a fair buy-out price would be 50 percent of $260,000, minus any debts such as a mortgage or unpaid property taxes. Or you and your partner might want to hire an appraiser to make a new appraisal.

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Copyright 2006 Inman News