buying house from parents

Discussion in 'Real Estate' started by danielyp29, Dec 10, 2018.

  1. danielyp29

    danielyp29 Active Member

    Jan 3, 2011
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    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.
     
  2. MuskieCy

    MuskieCy Well-Known Member

    Nov 4, 2006
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    Get professional help in order to avoid any entanglements.
     
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  3. Acylum

    Acylum Well-Known Member
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    Are you an only child? Because, if not, I've seen this type of thing cause problems.
     
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  4. BCClone

    BCClone Well-Known Member

    Sep 4, 2011
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    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.
     
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  5. BCClone

    BCClone Well-Known Member

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    Faster fingers than mine.
     
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  6. CyCloned

    CyCloned Well-Known Member

    Oct 18, 2006
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    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.
     
  7. BoxsterCy

    BoxsterCy Well-Known Member

    Sep 14, 2009
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    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:
     
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  8. Cyched

    Cyched Well-Known Member

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    [​IMG]
     
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  9. KnappShack

    KnappShack Well-Known Member

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    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.
     
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  10. NebrClone

    NebrClone Active Member

    Apr 11, 2006
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    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.
     
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  11. 1UNI2ISU

    1UNI2ISU Well-Known Member

    Jan 30, 2013
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    That looks crucial to the structural stability of the house....
     
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  12. dafarmer

    dafarmer Well-Known Member

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    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".
     
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  13. isufbcurt

    isufbcurt Well-Known Member

    Apr 21, 2006
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    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!!!!
     
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  14. BCClone

    BCClone Well-Known Member

    Sep 4, 2011
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    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.
     
  15. SwirlyBird

    SwirlyBird Well-Known Member

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    Wait until you get it in the will
     
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  16. ClonesFTW

    ClonesFTW Well-Known Member
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    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.
     
  17. isufbcurt

    isufbcurt Well-Known Member

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    Don't tell them it's none of their business.
     
  18. wxman1

    wxman1 Well-Known Member

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    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.
     
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  19. VTXCyRyD

    VTXCyRyD Well-Known Member

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    #19 VTXCyRyD, Dec 10, 2018
    Last edited: Dec 10, 2018
    [​IMG]
     
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  20. BCClone

    BCClone Well-Known Member

    Sep 4, 2011
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    Farmland always sells too cheap. Every acre is worth 15k/acre. Doesn’t matter if it floods or burns up 8/10 years.
     
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