One question that we are often asked is: “can I and should I buy a home from a family member?” The answer to this question is yes if you do it correctly and get help from professionals such as Realtors, lawyers and mortgage brokers as needed.
If the relative owns the home outright and has no mortgages or loans on the property you can simply purchase the property for whatever amount is agreeable to both parties. This can be done through a quit claim deed. If you do this it would be a good idea to contact us or consult an attorney with experience in local real estate law to make sure everything is done correctly.
If the home is mortgaged then this kind of purchase can be a little more challenging. First you will have to make sure the mortgage and home equity loan payments are current. You might want to call the mortgage holder and ask if it is possible to transfer the mortgage to the new owner as sometimes the loan maybe an assumable loan. If it is not you might want to contact us or a mortgage broker about other options.
Tips for Making a Home Purchase from a Family Member Easier
It is generally a good idea to work with a Realtor and/or a mortgage broker. A mortgage broker might be able to work with the mortgage company or arrange financing. We can certainly advise you on the paperwork and help you locate other professionals whose help you will need including title companies, mortgage brokers and potentially assessors, home inspectors and attorneys.We understand the local laws and the Northern Nevada housing market and can also alert you to problems you may not be aware of.
Before making the purchase you should run a title search on the property to make sure there are no outstanding liens against it. If there are liens you can still go through with the transaction once they are paid off or settled.
Have the home professionally inspected, and learn its condition before signing off on the purchase. This way you can make sure there are no major defects such as leaking roofs or major unseen termite damage.
You’ll need to determine the home’s value and a good way to do this is to ask a local Realtor such as ourselves who knows the market well. We can give you an informal estimate that can help you with negotiations. You also hire a professional real estate assessor to give an opinion of market value. We can help certainly help you locate a local appraiser.
Ensure all the necessary Nevada paperwork is completed to protect both buyer and seller and to ensure the sale is legal and that you will have clear title to the property.
Make sure you understand all the costs of ownership before getting into the sale. We’d recommend that you know what your closing costs are going to be as well as determining utility bills, what repairs and maintenance might need to be done, what the taxes are and what homeowners’ association fees you might need to pay, if any.
Do not buy a home from a relative that is in foreclosure or short sale. This can lead to a lot of legal entanglements and other problems that could cost you a lot of money.
Take your time and carefully discuss the sale before committing yourself to it. This way you can avoid conflicts and potential problems. It is also a good idea to talk over the sale with a real estate professional before you take any action. We can tell you what you are getting yourself into and advise you how to do it correctly.