Sisters can't agree on fair value of father's home

Q. For the past few years, myself and my two sisters have owned and operated a three flat that our father left us when he passed away. We have shared in the work that has to be done and it has been working out pretty well.

Unfortunately, one of my sisters has run into some financial problems and wants us to buy her out. My other sister and I are OK with that so we asked a real estate agent what she thought the building was worth. She came back with a value but my sister thinks the building is worth far more. She then sent over an agent, who we think is a friend of hers, and he came back with a far higher value.

We have been trying to work it out but are getting nowhere. The sister who wants her money claims she can sue us and force us to sell the building. Is this true? Any ideas on how to resolve this?

A. Hire an appraiser to prepare a certified appraisal. If someone doesn't like the results of the appraisal, agree to have a second appraisal prepared and further agree that all parties will move forward based on the average of the two appraisals.

In regards to whether or not your sister can force you to sell the building, yes she can. This is called a partition suit and would be filed in the county where the property is located. In most cases, the court will order the sale of the property and a division of the assets once the property is sold after all appropriate expenses are paid.

Q. If I am trying to get me taxes lowered, what does the county look at in determining my fate?

A. Most counties do a good job of providing instruction on their websites for property owners wishing to contest their assessed valuation. Remember, you are not contesting your tax bill, you are contesting the assessed valuation of your property. Reduce your assessed valuation and you will almost certainly reduce your tax bill.

Notices of assessed valuation (for tax year 2018, payable in 2019) start coming out in late spring and continue through summer and sometimes into fall, depending on where the property is located. A property owner has 30 days from the date the assessment notice is published to file his or her appeal.

There are generally two avenues to contest your assessment. One, that your assessment is too high based upon the fair market value of the property. Two, that your assessment is not consistent with similar properties in your area.

To contest based on fair market value, you will generally need to furnish either proof of a recent sale of the subject property or a certified appraisal to establish fair market value. If the county says your property is worth $300,000 and you bought the property four months ago for $250,000, or you have a certified appraisal establishing the value of the property at $250,000, you likely have a winning argument.

To argue lack of consistency takes a little more work. Your total assessment is comprised of two items, land and improvements (buildings and structures). The critical figure in establishing lack of consistency is improvement assessment per square foot. So, if your assessment for buildings and structures is $90,000 and you have a 3,000 square foot house (above ground, not including a basement), your improvement assessment is $30 per square foot ($90,000/3,000 square feet). Now you need to research similar properties in your neighborhood to determine their improvement assessment per square foot. Obviously, you are looking for similar properties with significantly lower improvement assessments per square foot than yours. This information is generally available through the county's assessment office.

In the event you do not wish to go through this exercise, there are companies and law firms available that you can pay to do this work for you.

• Send your questions to attorney Tom Resnick, 345 N. Quentin Road, Palatine, IL 60067, by email to tom@thomasresnicklaw.com or call (847) 359-8983.