How to sell my home to my relative?

Question

My husband and I own a home that we want to sell to our uncle. We no longer live at this home, but we did live in it for over two years in the past. Our uncle and his family are currently renting it from us and they now want to buy it. We have already had an appraiser look at the house and give us its value. Since we already have a buyer who verbally agreed to pay the asking price and were not going to put it on the market, what steps do we need to take to close the deal.

PS... Our uncle has already been pre-approved for a loan.

Answer 1

you might find an independent agent that would type up a contract for you or get an real estate attorney, either way it will probably cost the same

Answer 2

Check with an accountant to make sure you're minimizing your taxes and won't get into trouble with the IRS. However, with a solid appraisal, that solves some of the problems. (Problems could more easily arise if you were "selling" it at way below market value.)

If you've been renting it to your uncle, you've likely been depreciating the house for tax purposes. There will be a recapture provision, but that won't be too harmful. Your accountant can advise you on that.

Once you have the clearance from your accountant, then you and your husband, and the uncle just need to go to a lawyer. A settlement attorney can handle it. You don't need a real estate agent; it's as if you were selling FSBO (which, really, you are).

It should work out fine. Just go to an accountant first. Then a settlement attorney.

Hope that helps.

Answer 3

Depending on what state your in you can write up a contract and close through a title company. Some states you must use a real estate lawyer.

I would suggest a home inspection so there are no surprises. Negotiate any repairs and go from there.

You can also consider a real estate agent and pay them a small fee to write out the contract with your terms.

Answer 4

Use a title company or real estate attorney to make sure everything is done right at closing.  You don't really need a real estate agent or broker since you already have a buyer and that would be a waste of money.