Home Buying in Los Angeles>Question Details

Hiphopson1985, Home Buyer in New York, NY

Are there any benefits to buying my parents house from them?

Asked by Hiphopson1985, New York, NY Mon Nov 18, 2013

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Yes, now you don't have to sleep in the garage.
1 vote Thank Flag Link Mon Nov 18, 2013
Yes, in California you can move your tax base on the house from parent to child, also your parents can sell you at a Great Price .It would be fantastic to help you get started with your real estate portfolio.They could also pay for all closing cost for you & even carry a loan for you at below market rate ! Good Luck !
0 votes Thank Flag Link Sat Nov 23, 2013
The only benefit is that they can sell it for a cheaper price and they can do for sale by owner, so they don't have to pay a commission. Both parties end up winning.
0 votes Thank Flag Link Fri Nov 22, 2013
It depends on many factors. Are they willing to give you a deal? If not then you might as well let them sell on the open market and get the most that they can! Then you buy what you really want!
0 votes Thank Flag Link Wed Nov 20, 2013
The benefit is that you know about the house and should be aware of anything wrong with it.

Also, your parents may be exempt from certain costs of selling the home since it is to a relative.

Finally, everyone will save on the costs of real estate commissions, although you will probably want to pay a realtor or attorney a fee to draw up the paperwork.

The only real negative is that the lender is going to scrutinize things a little closer since this is not an Arm's-length transaction. It doesnt mean you wont be able to get a loan - just means you might have to jump through a couple extra hoops.

If this is a "bailout" situation where the parents are facing foreclosure or something then you probably wouldn't be able to get a mortgage

Hope this helps!
0 votes Thank Flag Link Tue Nov 19, 2013
You have many options.
Some benefit YOU.
Some benefit your parents.
Some may have benefit to both.
Which is best must be decided by the situation, the circumstances and long term goals.
Where one must being is where do you live, where do you want to live and 'How's your credit?"

Best of success.
0 votes Thank Flag Link Tue Nov 19, 2013

I would consult with financial planner and tax attorney. Express you family goals and become aware of what is the best course for you and your parents.

Gail Mercedes Cole
EXP Realty Marina del Rey
0 votes Thank Flag Link Tue Nov 19, 2013
You will have a nice transaction with great people!
0 votes Thank Flag Link Tue Nov 19, 2013
Depends on what you are trying to do?

Alex Greer
Loan Officer
NMLS #1056079

0 votes Thank Flag Link Mon Nov 18, 2013
Besides getting a great price..I would recommend speaking with a Tax consultant.
0 votes Thank Flag Link Mon Nov 18, 2013
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