my wife and I've been talking with my parents about possibly buying their house and thought I'd seek out CF for any advice. we'd get help with the down payment (aka buy it little less than market value) and would avoid paying any agent commission, but wasn't sure if there were any good tips or warnings we should know before deciding this was a good option.
buying house from parents
- Thread starter danielyp29
- Start date
Get professional help in order to avoid any entanglements.
Are you an only child? Because, if not, I've seen this type of thing cause problems.
Buy a different house. Have seen this go wrong basically every time. Unless if you are an only child, then there is a chance there.
I think it is a good opportunity if it works for both parties, but all family members need to sign off on it, and you definitely need to professional help with the closing as noted above.
If your parents are moving into assisted living or just downsizing to something small, this could really help them make that transition.
If your parents are moving into assisted living or just downsizing to something small, this could really help them make that transition.
This, just have a lawyer to review and draw stuff up. I have only been involved in two real estate deals in my life even though I am a CF senior. Bought my house direct from an old couple 35 years ago sold my inherited parents house last year, again direct and with a lawyer reviewing.
And to the naysayers here, not everyone has siblings that are ********. My parents could have given their house to my sister for all I cared and vice versa. We didn't inherit the sibling rivalry gene from my dad's side.
This, just have a lawyer to review and draw stuff up. I have only been involved in two real estate deals in my life even though I am a CF senior. Bought my house direct from an old couple 35 years ago sold my inherited parents house last year, again direct and with a lawyer reviewing.
And to the naysayers here, not everyone has siblings that are ********. My parents could have given their house to my sister for all I cared and vice versa. We didn't inherit the sibling rivalry gene from my dad's side.
Or parents. Had a cousin do this recently. Father-in-law left everything in the house that he didn't want. Including food in the fridge. Cousin's family couldn't even fit their stuff in the house since pops thought they could handle throwing out his unwanted ****.
Father-in-law also fancied himself as a master plumber and electrician. He was neither.
House is a money pit and the family still treats it like they can do what they want to the home and whenever they want. It's a mess.
Don't use a Real Estate Agent, you can buy the house for 7% less and you parents will get the same amount. Find a lawyer to do the paper work. I have done this twice.
That looks crucial to the structural stability of the house....
Agree to a price. Write a contract and have them gift you the maximum amount each year until the agreed price is satisfied. No money ever changes hands. Tell siblings to suck it!!!!
I suppose if you are going to irk the siblings once with a lower price, might as well hit them again when will is read and more tax is estate tax is due because of the lower exemption.
Assuming the figures and legality have been worked out you can do a gift of equity for your down payment and closing costs in order to come to the signing table with minimal funds. The gift of equity is simply the difference between what it will appraise for and the agreed upon sales price.
Same goes for farmland. Had a cousin that is the only farmer left in the family buy out all of my grandparents land. One of our uncles got mad because he felt the price was too low.
Farmland always sells too cheap. Every acre is worth 15k/acre. Doesn’t matter if it floods or burns up 8/10 years.
