In another question, you stated that you and bro inherited the house. So, get an estate attorney to start working on getting the title transferred over to you and bro. To do this, auntie will need to find documentation of all this debt she keeps coming across. If the house is the most valuable asset in the estate, it may have to be sold to pay for the debt. She will need to prove where the money is going. You will get any remaining amount.
The issue with the house now is that it's not sellable at anywhere near 'expected' value. If the plumbing isn't working and the floors are dangerous, buyers will have a hard time getting financed. New carpet, paint, and a/c are different issues that are just about marketing and making it more appealing. If you don't fix these things, the house won't sell anywhere near full value. It will sell at a 50% discount to a flipper. If you fix these things, the house should sell near full value, but fixing these things won't increase that value incredibly.
You guys will need to get an appraiser out there anyway for the probate, so do it now. Get an actual estimate of the value of the house in the condition it's in. Talk to the appraiser and some agents about the return on investment if you fix everything. In houses that are significantly dilapidated, $30,000 worth of work *can* be $45,000 in selling value.
You've mentioned some pretty expensive items there that could easily negate the $30000 investment if they're badly damaged.
Replacing the plumbing often means redoing the tiles / whatever wall finish you have. Also, if it's in bad condition, there could be damp damage to fix which is another expense.
I'm not sure what AC costs in the states, but depending on which system you have it could also be pricey to replace.
Paint and carpets are the cheapest things there and you could probably do that yourself if you have the time and patience.
Floors are a tricky one. It's like the "how long is a piece of string" argument. You get cheap, shitty floors and you get expensive, durable floors. You didn't day whether they're timber, tiles, concrete or carpet. They all have different price labour ranges.
All that is beside the point though. If you suspect there's foul play at hand, hire your own attorney to look at the state of his financial affairs. You'd be well within your rights as his daughter. I find it strange that his sister is the executor if he has children. If you're under legal age to inherit, and you're suspicious of your aunt, get an attorney to help you.
To answer your first question - sinking $30,000 into the house will not yield a return of $30,000 (or more) in the selling price. The math used on HGTV renovation shows, where the crews spend 20K and magically the house increases in value by 45K, are often not reflective of reality. Using your figure of 30K, the increase in value of only 2K is probably too pessimistic, so I'm not sure where your aunt came up with number. She is certainly correct in that sinking 30K in the house will not yield a full return on that money.
Generally, when you're selling a house, expending 2-5K is reasonable to correct things that scare off buyers who have no imagination or want a move-in-ready home. These things include a fresh coat of paint in the worst rooms, repairing the front stoop, updating the landscaping, changing outdated/ugly light fixtures, and such.
Until you get the finances of your dad sorted out, do NOT sink any money into this situation. Especially not 30K. Without seeing any documentation, or even a good sit-down with your aunt, you can't really go forward. If your aunt resists releasing documents like wills, financial documents, you can always contact a lawyer who will be working for you rather than the estate.
People who are trying to pull off shady stuff (and you said you & your siblings don't trust your aunt) hate having lawyers involved who will likely expose their deceit. I hope it doesn't get to that point, but without trust in your aunt and her being transparent, you might have to go that route.
You have a better sense than anyone else on this forum as to your dad's assets - if only 20K of the house was paid off with a remaining mortgage of 580K, and he had no stocks or investments to balance off his 30K (or 90K) in debt, there might not be anything worth pursuing here.
If there is a chance that there is more debt on the estate than equity, don't put any more money into the property because a bank can force the sale, and you won't get any of the added equity.
In general, the return on investment varies by housing project. Things like pools and jacuzzis are a waste of money. Kitchen/bth upgrades can pay back most of the investment. It is also wise to make minimum repairs to get the house habitable, clean, and hygienic for sale.
Don't put any money into it. It will not be returned, not for the things you are talking about.
He could easily be 90k in the hole. He may have had only 30k in debt shortly before his passing, but there would be medical bills and of course burial bills to come out of the estate as well.
Your aunt will need to account for all of the money as part of the legal process of probate.
As a court appointed Executor she will have to fully document the value of the estate and payment of all outstanding debts prior to transferring any excess funds to legal heirs. If your father owed a lot of money the house and other assets may have to be sold to cover the debts. Good Luck
The upgrades you speak of are cosmetic and maintenance.. They don't add value, they are just done to make the home marketable. The plumbing must be working in order to sell, the AC as well. Painting & carpet are just to make it nice. Upgrading to increase value is like adding a room, granite counter tops instead of the cheap stuff etc.
get an estate lawyer where ever u live
to teach u laws where u are and to examine the estate
papers b4 the hole thing blows up.
in most USA state executors have to PROVE ALL money
matters.
u never put money into a house in an estate dissolving
u and others need to do some serious learning b4 losing money.
Depends on what you spend the money on. You could increase it not at all, or by more than you put in. Entirely possible to put in $30K and only get $2000 back.
My father passed away a couple of months ago. My Aunt is the executor because he had no will. We are in the process of figuring out what to do with the house. My Aunt says that if we put $30,000 into fixing it up, that we would only make a difference of $2,000. Those numbers don't make any sense to me. It is a 3 bedroom, 2 bath, ranch style home. I believe it's about 30 years old. It needs new paint, carpets removed and floors put in, new pluming, and a new AC.
Other family members have become suspicious of my Aunts intentions. My father also passed away with at least $30,000 in debt. He was bi polar and blew all his money and then some, with in a matter of months right before he died. When he came out of his manic state, and realized what he had done, that's actually what more than likely gave him the heart attack and killed him. My aunt has gone from saying he had $30,000 in debt to now saying maybe $90,000 in debt. We have seen no documents or anything to prove this. There have been other things making us suspicious as well.
