Buying a house from a family member
It stays in the family
There are many things you can get from your family members, for example, their genetics, traditions, customs, heirlooms, savings, etc. In some cases, you may even obtain their home. In an ideal world, that home would be a present that you would not have to pay for. But, we do not live in an ideal world, and there are occasions when buying a house from a family member, not inheriting it, is necessary.
And, even when this happens, things may not be perfect. Yes, you may get a better price, and yes, you may even close the deal sooner. However, you may also face many disagreements and even end up fighting with the rest of your family. Many things can happen when buying a home from a family member. But, do not worry - we are here to help you out. We will share with you some tips on how to make this process as stress-free as possible.
You Still Need a Good Real Estate Agent
Since you already know which home you want to buy, you probably think hiring a real estate agent is entirely beside the point. But you're mistaken. When you hire a good real estate agent, they will be able to guide you through the entire process of buying a home. Moreover, they will be able to tell you whether you are over or under-paying that particular house. That may come in handy if you are not close (or if you are not in good relations) with the family member from whom you want to buy that home. Thus, do not hesitate to find a good, local real estate agent - even if you need just a piece of advice.
A professional real estate agent can be of great help when buying a house from a family member.
Get Your Finances in Order
The next step when buying a house from a family member is to get your finances in order. If you have some savings, fantastic! But if you do not, you should go to your bank and talk about your lending potential if, of course, you plan on getting a loan from your bank. You can also let the experts check your credit score - something that you will need to do if you want to get a mortgage. But, whatever you do, do not forget to set some money aside for your moving expenses. Whether you plan on having a DIY kind of move or look for professionals on Best Long Distance Movers to handle everything, you will still need a substantial amount of money. The same applies to remodeling the home and doing any necessary repairs.
Decide on the Purchase Price and Make an Agreement
When buying a home from a family member, there is a big chance that you two (or your two families) will set your own price. This price may be lower or higher than it should be - your real estate agent can tell you the fair price and maybe even offer a free market analysis. But, at the end of the day, it is all up to you. You should be the one deciding whether you want to buy a home and whether you want to pay a certain amount or not. Whatever you decide, make sure you make a written agreement with the family member selling the house to you. This will be the binding contract between the two of you, ensuring that everything goes according to plan.
Have the Home Thoroughly Inspected
Just because you are buying a home from your family does not mean that there is nothing wrong with it. Who knows - the roof may be leaking, the windows may not be shutting properly, there may even be pests in the basement. All of this, and who knows what else, can be a big problem - a problem that will end up costing you a ton of your time, energy, and money later on. Thus, save yourself from this problem, and have the home thoroughly inspected by a professional home inspector (or even a contractor). If there is something wrong with the house, you and the owner should decide who will pay for the repairs right at the beginning!
Moreover, if you will be moving long-distance, consider where it will be. Suppose you are planning to live in California. That is, imagine you plan on buying a home there or in some other state prone to natural disasters. If that is the case, you should make sure that the house is adequately insured, too - check the insurance history with the owner right at the beginning.
Close the Deal
If everything seems in order, you can go ahead and close the deal. This will involve a lot of paperwork, so take your time. Read everything carefully before you sign anything. If there are some disagreements with the owner, it might be a good idea to involve a lawyer - better to be safe than sorry! This is especially important if you plan on moving somewhere long-distance and buying a home for a substantial amount of money. You do not want to end up broke and with a home that requires a lot of work. Even though you are buying a house from a family member, you should always look at them as your sellers first. They are the one trying to sell their home now, just like you are the one trying to buy it. So, put yourself and your needs first!
