Four siblings have inherited a home/property. The appraised value is around $480k, but in the current market it would sell for much more. One sibling was already living in the house rent free and wants to buy the property. They say that they were promised a lower value by the deceased, but other siblings were not aware of this and the will states split equally. To make it more complex, that sibling also recently took it upon himself to do "improvements" on the property he values at $20k. We now have an appraisal on the house at $480k. That sibling wants us to reduce that value by 9-10% for the seller fees we would see if we sold on the open market. However, on the open market we know it would sell for more than appraised. He also wants us to reduce the value by the $20k of improvements he made...as they were done prior to the appraisal. No one was consulted with or agreed to the improvements. While they would increase the "sellability" of the house...they wouldn't necessarily add $20K of value to an appraisal....or really any value.
Question is should we hold ground on the buyout value being at the $480K.....or reduce by any of the above?