buying house from parents

danielyp29

Well-Known Member
Jan 3, 2011
693
443
63
Ames
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.
 

CyCloned

Well-Known Member
Oct 18, 2006
12,235
5,612
113
Robins, Iowa
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.
 

BoxsterCy

Moderator
Staff member
SuperFanatic
Sep 14, 2009
33,556
25,477
113
Minnesota
Get professional help in order to avoid any entanglements.
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. :rolleyes:
 

KnappShack

Well-Known Member
May 26, 2008
11,992
12,112
113
Parts Unknown
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. :rolleyes:
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.
 

NebrClone

Active Member
Apr 11, 2006
889
211
43
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.
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.
 
  • Like
Reactions: Go2Guy

dafarmer

Well-Known Member
Mar 17, 2012
2,215
1,837
113
SW Iowa
Home inspection a must and make sure all siblings are in on the price(if any siblings). Know that any changes in the house will bring the response-"That sure is different".
 
  • Agree
Reactions: ripvdub

BCClone

Well-Known Member
SuperFanatic
Sep 4, 2011
37,696
29,640
113
North Iowa
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.
 

ClonesFTW

Well-Known Member
SuperFanatic
SuperFanatic T2
Nov 13, 2013
2,724
3,682
113
Waukee
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.
 

isufbcurt

Well-Known Member
Apr 21, 2006
18,816
21,907
113
42
Newton
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.
Don't tell them it's none of their business.
 

wxman1

Well-Known Member
Jul 2, 2008
14,516
8,125
113
Cedar Rapids
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.
 
  • Agree
Reactions: KnappShack