Buying or Selling a Home/Buying our first home
QUESTION: Hello. My husband and I are planning on buying our first home together. The home That we are planning on purchasing is my parents 2nd home That they own free and clear. We Have lived in this home for the last 4 years and are Now ready to purchase it from them.
My questions are.. what is the best process to go about buying the home? Should we Have the home apprasied? What is the best option in order to pay lower out if pocket expenses...including taxes.
ANSWER: Hi Vanessa,
Since this is your first home and you are coming in with no experience I don't recommend your doing it alone without the assistance of professionals. If you are looking to see the best method to transfer title to save on taxes you will need to contact an accountant. An attorney might be able to assist you with this and the transfer of title. You definitely need someone to determine the value of the home and that can either be through the use of a realtor or an appraiser. On what is probably the biggest investment of your life please get the help you need. Many of the closing costs are fixed.
I hope this helps
---------- FOLLOW-UP ----------
QUESTION: Thank you for the fast response!
We will be using professional help during the buying process.
After doing my own research online it seems a majority of people are against buying a home from family members. I am confused on why the situation has to be so difficult!
We want to purchase this home as if we were buying Any other home for sale at Fair Market value. What is your opinion on buying from family?...if Any.
I don't see any downside from buying from family members as long as everyone agrees to a price that both sides are happy with and you do all your due diligence up front including all inspections. Many times people purchase below market value from family as they might be able to get a realtor to just draw up the contract for a reduced commission. Since you have been living in the home for 4 years you are probably well aware of any issues. If you are using a realtor to draw up the contract that realtor should also be able to provide you with the comparables necessary to determine fair market value and that could save you the cost of an appraiser.