Posted on: 16th Sep, 2008 03:55 am
My father has a house that he paid off back in the 1980's. He is now 75 and is interested in selling it to me and my soon-to-be husband. We will not be buying the house until after we are married.
Anyway, my dad said that since we don't have to have a realtor, he would give us 6% off of the selling price of the home (what he would normally have to give a realtor).
My question is...would he be taking 6% off the price that an agent would list it for? Or 6% off what the house appraises for?
I have 3 other siblings, so my dad can't sell us the house for dirt-cheap...it needs to be close to fair market value.
Also...would we do the title changover with a quit claim?
Any information that you have will help!
Anyway, my dad said that since we don't have to have a realtor, he would give us 6% off of the selling price of the home (what he would normally have to give a realtor).
My question is...would he be taking 6% off the price that an agent would list it for? Or 6% off what the house appraises for?
I have 3 other siblings, so my dad can't sell us the house for dirt-cheap...it needs to be close to fair market value.
Also...would we do the title changover with a quit claim?
Any information that you have will help!
last things first: you ought to transfer the title with a warranty deed; legal counsel will advise you further on this topic, but it only makes sense.
as for the price, i would surmise that your likely price would be 6% less than fair market value (appraised value). however, that being said, you'll need to know what that value is (at least approximately) in order to draw up a contract to purchase, and before you head to your lender's office to begin the application process.
you can probably speak with a realtor and/or appraiser to try to obtain an opinion on the value and move forward from there.
as for the price, i would surmise that your likely price would be 6% less than fair market value (appraised value). however, that being said, you'll need to know what that value is (at least approximately) in order to draw up a contract to purchase, and before you head to your lender's office to begin the application process.
you can probably speak with a realtor and/or appraiser to try to obtain an opinion on the value and move forward from there.
once you agree on a price, you will need to do one of two things. first, if you are obtaining financing then you will need to contact a lender or broker to start the process. if your father is doing seller financing (in which you make payments to him) then you can do a quit claim deed. as far as value goes, i am sure that you can come to agreement on a price that is fair to you and your father both. i would say that giving him a price that is slightly below market value is fair. even if you were to give him fair market value, you will most likely benefit from equity gain in the future.
