Sale Your Home to Your Family Members Use This Tips

I am getting ready to sell my house, and my brother wants to buy it. It was going to be listed at $400,000. I still want to get as much as I can for it, but I also feel like I should give her a deal. Can you give some tips way we can make this work for us both?

There is a lot to consider when you go enter into any kind of financial transactions with a relative. It could be useful, but it could also be ugly. On the positive side, if you sell to your brother, you won't need the services of a real estate agent. That means you did save 3% to 5% on the agent's charge.

You would save that charge if you sell it straight to your brother," said certified financial planner with Directional Wealth Management in Peninsula. You also avoid having to get ready your home for showings, be out of your home for showing and having a bunch of stranger going through your home for showing.

He said a fast deal, which is more possible with a family sale, will most likely save you some property taxes and home and land owner insurance. But there are also some real cons to having a family member buy your home. The first thing to do is make sure your brother can have enough money to buy the house and succeed for the mortgage.

Then be ready to deal with possible issues with your home that come up in the inspection, certified financial planner with Directional Wealth Management in Peninsula said. Believe the potential crash of a main home repair issue arise after the sale.

To finish, he said, selling without full market contact always entails a risk of selling for less than market value. That is because full market exposure is the only way to know what the present demand calls for.

How to Minimize the Potential for Problems 

First, contact at least two local real estate agents and request a broker price opinion, which is what they think your home is worth. Then you can think reducing the price you give your brother by what the sales commission would have been, and even by the property taxes and cover you will save, McCarthy said.

Consider purchasing a home service contract which McCarthy said could help address potential house inspection issues or those post-closing major issues.

Remain you may owe a real estate transfer tax. And lastly, McCarthy said, you should still use a real estate lawyer to make sure the sale is complete correctly. If you are planning to move out of state, you should also be aware that some us states require an exit tax, too.