Selling house to family member
Selling a home is not easy especially if you want to sell your home to a family member. Selling a house to a family member can make you hassle but not just because the buyer is a family member, friend or even relative you can sell the house with the discount. Beside that you are also going through many legal processes as same as if the purchaser is not relative or family member. You must make the process normally because if you fail to follow the proper procedure, not only you but also the buyer would wind up in trouble with the IRS.
- To appraise the value of the house and provide you a written and signed appraisal document you can hire at least two or three independent appraisal. The prices of your house that you want to sell to your relative must not more than 25 percent than the lowest amount because if you give it over the lowest amount the IRS may be able audit you.
- You and your relative make and arrangement of the financing. You can give an option to the buyer as your relative. You can choose to arrange seller financing. The optional is whether your relative makes payments to you or you can have your relative buy a half of the home outright and the remainder will pay in payments. In additional, you relative can get a traditional mortgage with a bank mortgage company, with condition your relative never defaults on the loan because if your relative has default on the loan the bank will claim the house.
- Make the home available for inspection because many counties require to process before the process of selling. Even though your relative you are selling will pay the home-inspection fee but you can choose to pay it if you wish. However, some county do not require an inspection before sell a home so you can skip the cost if your seller agrees.
- When you sell your home so the house title name is also changing. For this reason you should hire a title company to process the transfer of the house title from you to your relative’s name. Also, if your relative decided to buy a standard mortgage, the bank or mortgage company requires this step.
- You need a real estate lawyer to check all the final sales documents. This process is important to do to make sure that everything is in order and legal. The lawyer will send all of the sales documents to the county and if necessary they also will send it to the mortgage company.
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