my family is considering purchasing a relative's home. are there any drawbacks i should consider?

Asked by Hilda, Bronx, NY Sun Jan 4, 2009

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6
Eric Funk, Agent, Morristown, NJ
Sun Jan 4, 2009
I think that you need to try to separate business from personal and try to deal with each other as you would like to be dealt with. This should always be the case but when buying a stranger's home, it's easy to ask for repairs, lower price, etc. It may be more difficult when negotiating with a relative and animosity can develop.
Make sure that you keep an open conversation, disclose concerns and have an agreement up front to deal amicably with each other. You don't want to get your home and be alienated from a family member!
1 vote
Laura Gianno…, Agent, Manahawkin, NJ
Mon Jan 5, 2009
Buying and or selling a home is stressful. If this is the home you want each party should hire a REALTOR and/or an attorney to handle any negotiations on price, repairs or concessions. These things can cause problems and a third party, with no emotional ties to the situation, might be in a better position to deal with them. Good luck!

Laura Giannotta
Keller Williams Atlantic Shore
0 votes
Marc Paolella, Agent, Succasunna, NJ
Sun Jan 4, 2009
As long as price is a non-issue, you should be fine. If price is NOT a non-issue, I'd look for another house. But if you decide to continue anyway, have the home professionally appraised.

-Marc
Web Reference:  http://www.marcpaolella.com
0 votes
Dallas Texas, Agent, Dallas, TN
Sun Jan 4, 2009
I would recommend having an attorney or realtor work on behalf of all parties. Never know what may happen it would diffuse any problems.
Web Reference:  http://www.lynn911.com
0 votes
John Sacktig, Agent, New Jersey, NJ
Sun Jan 4, 2009
Hi Hilda -

Handle this as you would aby other real estate transaction. Have your relative get an attorney and you get yourself a real estate attorney and proceed with the process. I am sure you have negotiated a price.. but I would have an inspection and note any issues. Either way.. if you have no issues and have already negotiated a price.. a Real Estate attorney will answer all the other questions and make a clean transaction.
0 votes
Luke Allison, , Asheville, NC
Sun Jan 4, 2009
On the contrary, buying a family member's home can be one of the easiest ways to buy a home. You can use a Gift of Equity for the down payment and still have them pay closing costs. Basically you can purchase a home up to the market appraised value and then the seller can conceed as much as the are comfortable with to cover both the down payment and the closing costs.

I would still advise you to go through with the standard buying process including an inspection just so all parties involves can rest easy that there are no issues with the home.

If you have any questions, please feel free to contact me.
Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com
0 votes
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