Overview

If you own a share of family land in Washington and a co-owner offers far less than the independent appraisal, you can often negotiate a fair buyout without going to court. This FAQ-style guide explains how Washington law treats co-ownership and partition, how to value an ownership interest, practical negotiation strategies, and next steps if negotiations fail.

Quick disclaimer

This is general information only and is not legal advice. I am not a lawyer. For help tailored to your situation, consult a Washington real estate or civil litigation attorney.

Key Washington legal background

Co-owners of real property in Washington have a right to seek a partition if they cannot agree about property use or disposition. Under Washington law a co-owner can file a partition action asking the court to divide the land or order a sale and distribute proceeds. See the Washington Revised Code on partition actions for more detail: https://app.leg.wa.gov/rcw/default.aspx?cite=7.60.010

Hypothetical facts to illustrate

Imagine three siblings own 150 acres as tenants in common, each with a one-third share. An independent appraisal values the whole parcel at 600,000, so each one-third share has a pro-rated appraised market value of about 200,000. One sibling offers to buy your one-third share for 100,000. Below are step-by-step actions you can take to try to obtain a fair buyout.

Detailed answer: How to negotiate a fair buyout in Washington

1. Confirm ownership and the appraised value

Review the deed and title to confirm your ownership percentage and any recorded encumbrances (liens, mortgages, easements).
Get a copy of the full appraisal report rather than just the single number. Make sure it is a certified appraisal done by a licensed Washington appraiser. Verify the appraisal date and assumptions (zone, access, usable acreage).

2. Understand the likely fair market value to use in negotiation

Fair market value (FMV) is what a willing buyer would pay a willing seller in an arm’s-length sale. For a co-owner buyout you can start with the FMV from the appraisal, then consider reasonable adjustments:

Pro rata share: multiply the FMV of the whole parcel by your ownership percentage.
Liquidity or minority discounts: a buyer sometimes claims a discount because an ownership interest is not easily sold on the open market. Reasonable discounts commonly range from low single digits to 20% or more depending on facts (partial interests in large parcels, lack of marketability, zoning or access problems). Document why any discount is appropriate.
Improvements and contributions: if you paid for improvements or taxes, you may be entitled to an accounting or credit.
Debts and expenses: adjust for mortgages or liens against the property before division of net sale proceeds.

3. Prepare a persuasive counteroffer

Use clear documented numbers. Example counteroffer structure given the hypothetical above:

Start with the appraised one-third share: 200,000.
If you accept a reasonable liquidity discount, propose a specific percentage and explain why (for example, 10% liquidity discount leads to 180,000).
If you want some premium for immediate sale to the co-owner, consider reducing the discount or asking for 185,000–195,000, or ask for interest on deferred payments.

Put the numeric offer in writing, show how you calculated it, and give a deadline for response. Written offers create a clearer record and help if the matter later goes to mediation or court.

4. Offer flexible terms to bridge the gap

If the co-owner cannot pay the full fair number up front, propose alternatives:

Structured payments: a promissory note with a mortgage or deed of trust as security and a reasonable interest rate.
Escrowed closing with deed transfer on full payment or deed upon partial payment with security.
Buyout plus retained easement or life estate if you want continued use or income.
Installment sale taxed differently (consult tax advisor for capital gains and installment sale rules).

5. Use neutral third parties

Hire an independent Washington-licensed real estate appraiser if the parties dispute valuation.
Propose mediation or neutral valuation (each side chooses an appraiser and they choose a neutral appraiser, or agree to average two appraisals).
Consider a real estate broker for an opinion of value or to outline likely marketability if you were to sell on the open market.

6. Put any agreement in writing and close properly

If you reach terms, have an attorney draft or review the buyout agreement. Typical documents include:

Purchase and sale agreement or settlement agreement.
Promissory note and deed of trust if payments are deferred.
Quitclaim or warranty deed transferring your share and a signed general release releasing all claims about past contributions to the property.
Instructions to escrow and request for reconveyance and recording to clear title.

7. If negotiations fail: consider a partition action (and the risks)

If you and the co-owner cannot agree, Washington law allows a co-owner to file a partition action asking the court to divide the land or order it sold. See RCW 7.60.010 for the governing statute: https://app.leg.wa.gov/rcw/default.aspx?cite=7.60.010

Things to keep in mind about partition in Washington:

The court may order partition in kind if the property can be divided fairly. If physical division is not practical, the court may order sale and distribution of proceeds.
Partition litigation can be costly and time consuming. You may recover costs or attorney fees in limited circumstances, but not always.
Often a forced sale yields less than orderly market sale proceeds, and litigation costs reduce the net distribution. Use the credible threat of partition as leverage but understand the downside.

8. Tax and title consequences

Capital gains tax may apply on a sale; how much depends on your basis and whether you have exclusions. Consult a CPA.
Record the deed promptly and request a title update or new title insurance policy if needed.

Sample negotiation timeline (practical checklist)

Day 1: Request the full appraisal and deed; confirm your ownership share and liens.
Week 1: Obtain an independent appraisal or broker opinion if you question the valuation.
Week 2: Send a written counteroffer with clear numbers and proposed closing/payment terms. Propose mediation if needed.
Weeks 3–6: Negotiate payment terms, security, and closing logistics; involve an attorney to prepare documents.
Month 2–3: If no agreement, consider sending a mediated settlement demand letter outlining partition option and likely costs; decide whether to file a partition action or continue negotiating.

Helpful Hints

Get everything in writing. Oral promises make later enforcement harder.
Document any contributions you made to the land (taxes, improvements, maintenance) — these can affect settlement splits.
Use objective valuation: an appraiser’s written report carries more weight than a casual opinion.
Consider small concessions that cost you little but help close the deal, like accepting a slightly lower price for faster cash.
Be aware of emotion in family land disputes; mediation can preserve relationships while resolving value disputes.
Consult both a Washington real estate attorney and a tax advisor before signing anything that affects title or taxes.
If you face a partition action, act quickly to protect any equitable claims and present evidence of contributions or agreements among owners.

Where to get help in Washington

For attorney help and lawyer referral in Washington, see the Washington State Bar Association public resources: https://www.wsba.org/for-the-public/find-legal-help

For the governing partition statute: https://app.leg.wa.gov/rcw/default.aspx?cite=7.60.010

Closing practical advice

Start with a clear valuation and a neutral tone. Offer realistic payment terms if the co-owner lacks cash. Use mediation and neutral experts to narrow the gap. Keep in mind that filing a partition action gives you legal leverage, but it also exposes you to litigation costs and an uncertain sale outcome. An experienced Washington real estate attorney can help you evaluate offers, prepare enforceable documents, and, if necessary, represent you in a partition action.