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Buying or Selling a Home/Buying a house from Parents
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Question
My parents have retired out of state and would like to sell their house to my wife and I. The house in question would sell on the market for almost twice the amount we could afford. To enable us to purchase it, my parents have generously offered to sell the house for a price that we could afford (way under market value). Can they charge whatever price they want, even if drastically under market value? And do you forsee problems getting a loan in this situation? (our credit is very good). Thank you.
Dear Tim;
The only problem that this would create is for the rest of the neighborhood and comps in the neighborhood. Also, if you try to get an equity loan you may have problems justifying a higher price. Your parents may need to consult an attorney and/or accountant to see what tax ramifications there will be. It might work well for them. An estate attorney can give some good advice here. I don't see a problem in getting a loan as long as the lender understands what is happening. The home will be worth more than the loan amount and the risk will be lower as long as you have good credit.
Best wishes,
Jessica Bryan
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Jessica Bryan
Expertise
buying and selling process such as:
General questions from first time buyers
How to market a home
Why choose a REALTOR
How do I find a REALTOR
Should I consider buying or selling without a REALTOR--how much can I save
Should I remodel or move
How much can I expect to gain by fixing up my home before selling
Helpful tips when selling
Helpful tips when buying
finding a good mortgage loan
what is the difference between banks, mortgage bankers, and mortgage brokers
Questions from the general public, people thinking about getting their real estate license, newly licensed.
Fellow professionals who have interests in networking and how to get started
What is a market evaluation and how does it differ from an appraisal what are the different loan programs
services a REALTOR can perform
when to use a lawyer
when to use escrow
what are the regional differences in the buying and selling process
what is the MLS and how does it work
how can the layman access information on the web--listings and other information
These are just a few of the questions. I can suggest that if I am unable to answer a question I will refer the inquiry to a source that can.
Experience
Anyone who is in this business and who dedicates oneself to professionalism has continued to take classes and along with it,additional credentials, awards and honors. I can list a host of them, but my greatest accomplishments happen to be those of getting first time buyers (who didn't think they could afford to buy a home)into a home of their dreams. The look on their faces when I hand over the keys is worth all of the hard work.
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