Selling a House to a Family Member A Complete Guide

Lengo

Thinking About Selling Your Home to a Family Member? Here’s What You Need to Know  Whether you’re planning to give them a great deal or even gift the property entirely, selling your home to a relative comes with some unique rules and steps. From understanding how a gift of equity works to navigating taxes and legal paperwork, this guide will walk you through everything you need to make the process smooth and stress-free.

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00:00Selling a House to a Family Member, a Complete Guide

00:03Thinking of selling your house to a family member?

00:08It's possible and sometimes practical, but it's not as simple as handing over the keys.

00:13If you plan to sell below market value, the IRS could consider the discount a gift.

00:18That's known as a gift of equity, and it may require filing IRS Form 709,

00:24especially if the difference exceeds the annual exclusion limit.

00:28Start by treating the sale like a professional transaction.

00:32Agree on the terms, timelines, and payment structure.

00:36Get an appraisal to determine fair market value,

00:38and involve a real estate attorney to handle contracts and disclosures properly.

00:43If you do sell below value, document everything clearly.

00:47Hire an inspector to ensure the home is in good condition,

00:50and be aware that emotions can complicate things, so it's important to stay objective.

00:55Don't forget the final steps.

00:58Transferring the deed, handling title paperwork, and possibly paying transfer taxes,

01:03depending on your location.

01:05And if you're considering alternative routes,

01:07options like seller financing or lease-to-own can help ease the transition.

01:12The bottom line?

01:13Yes, you can sell your home to a family member, even at a discount,

01:17but you should do it by the book to protect your finances and your relationships.

01:20Visit www.lengo.com for more home buying tips.

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