Sometimes it makes sense for real estate to be kept in the family. If you’re wondering whether you should buy a house from your parents, you’re in luck. We’ve outlined everything you need to know about this unique type of real estate transaction, from how to handle the financial aspects of closing the deal to what you need to consider when thinking about how this could impact your relationship.
How to determine whether you should buy a house from your parents
Do you want to buy your parents’ house?
When you’re thinking of buying your parents’ house, the first thing you want to consider is whether you want their real estate. Sometimes buyers, especially first-time homebuyers, find that they do want to purchase a home from their parents because it’s familiar. They know the property’s location as well as its quirks and selling points.
On the other side of the spectrum, sometimes buyers will decide that they would rather have a fresh start, particularly a house that is their very own and is not caught up in family ties. They may find that they would rather be involved in a traditional arm’s-length transaction, where the buyer and seller are strangers to one another.
Are your parents ready to move?
The next factor to consider is whether your parents are ready to make a move. Often homeowners can be attached to their property, especially if it has been their primary residence for some time.
If, for example, your parents are sick of paying their mortgage and property taxes, you may be doing them a favor by offering to take the property off their hands. However, if they were planning on aging in place, asking to buy their home may be putting pressure on them to make a decision that they aren’t ready to make.
However, sometimes there is a happy medium. Occasionally children will buy the house that they grew up in as an investment property and rent it back to their parents. Then, when the parents are no longer capable of living in the home, the children keep the property as part of their portfolio.
Is your relationship in a good place?
The last factor to consider is whether your relationship with your parents is in a good enough place to handle being involved in an important financial transaction together. You may come to this venture with separate goals. For instance, the child may be looking to get a deal on the property while the parents could have been planning to use the funds from the sale of the house for their retirement.
To learn more tips for buying a house from your parents, or to view homes for sale in the Austin TX area, contact me today at (512) 944-7378 or click here to connect with me online.