Keep it in the family?

Purchasing from family can cause friction between relatives from the early stages of negotiation until well into home occupancy. Jealousy from other relatives, buyer remorse and resentment are just a few of the issues that may wreak havoc on family relationships. While these are all common downsides of business transactions, it's important to remember when doing business with family that the business relationship often carries over into personal relationships. If you're considering doing business with family, make sure both parties are aware of these potential pitfalls and understand the risks before entering into a purchase agreement.
Now that you have a clear understanding of the benefits and risks of buying a home from a family member, here are a few tips when buying from a family member:

Ensure mortgages are current If the home is still financed, be sure that the mortgage payments are in good standing. The last thing you want is a lien put on the home when you are trying to purchase it.


 Seek legal advice Make sure you have a lawyer look over all of the paperwork, including the offer, any counter offers and your purchase agreement. They will likely catch something you or your Realtor may have missed, and make certain the appropriate verbiage is in your contract to protect your property investment.
Once you've covered all of your bases, including understanding the risks, benefits and best practices for purchasing a home from a family member, you can be well on your way to entering into an agreement that meets both you and your family's needs. 

Use a REALTOR®  Many realtors are experienced in dealing with sales between family members. If this is the first time you are buying from a relative, your Realtor will be able to ask and answer the right questions for you to make sure your sale goes smoothly.

21 ?'s for your realtor when buying your 1st home

When it comes to purchasing your first home, buyers need to remember that their realtor is there to help ease the process and should take advantage of each opportunity to learn from them. Similar to a lawyer or any other consultant, a realtor is your advocate and counsel for the duration of the home buying life cycle, from the home search to close of escrow.

At a minimum, these are some of the most common questions to ask a realtor when buying your first home:

1) Is the listing price in line with market value?

2) What is a fair offer on the property based on recent comparables?

3) How long has the property been on the market?

4) How motivated is the seller?

5) What price did the seller pay for the home?

6) What is the age and condition of the property?

7) How many people have owned the property?

8) What items are included in the sale (e.g. appliances, window coverings, etc.)?

9) What are the annual taxes?

10) Is there a monthly or quarterly HOA?

11) Is the current owner up-to-date on payments?

12) How quickly can the property close?

13) Has all work on the house been completed with permit and to code?

14) What schools is the property zoned for?

15) Is there much crime in the neighborhood?

16) What type of utilities does the home require (e.g. oil, gas, septic, etc.)?

17) Who do you recommend to perform the home inspection, and why?

18) Which title company do you recommend, and why?

19) What is your relationship with the listing agent?

20) Do I need to be pre-qualified to write an offer?

And most importantly:

21) Is there anything you need to tell me that I haven't already asked?

Although a list of 21 questions may seem like overkill, when it comes to buying your first home, you can never be too informed. Realtors are people too and, regardless of how celebrated or highly recommended they are, they can forget to mention important details as easily as any other. As the buyer, it is your responsibility to ask the right questions and be as knowledgeable about the home as possible.

At the end of the day, you want to be comfortable that you made the best decision to purchase your new home. Your understanding of the property and transaction will greatly determine your confidence and satisfaction level with your decision - so don't hesitate to fire away with the questions (and be sure to take notes)!