Selling a house that belongs to 3 family members, is it less expensive to sell to family than an outside party

Question

I have been caring for my mother for the past 3 years

Answer 1

It depends. If your relatives are willing to pay a fair market value and there are no Realtors involved, then it's a good deal. It will save you money on closing costs. Also, you will avoid the process of having your property fot months on the market, showing the house and having your Realtor to do open houses. In most cases, finding an outside party means hiring an agent, which will cost you 5-6% of the selling price of the house.

Answer 2

The costs of selling a home may not vary no matter who you sell to. The seller is responsible for certain closing costs such as the owner's policy of title insurance, 1/2 of the escrow fee, the taxes to the date of recording, etc. Also, certain investors, such as FHA and VA, who may be funding your buyer's loan have specific seller paid requirements.

Seller's costs usually constitute no more than 5-10% of the sales price. Split between the 3 of you, that's a pretty small hit so I wouldn't worry about it.

The only other seller expenses that could arise could come form any lender required repairs to the property that would have to be completed prior to the closing of the sale.

The most important thing is to make certain your buyer is qualified and pre-approved for the financing.

Answer 3

Of course it will be less expensive to sell to family. Because the legal fees of selling to outside parties will be very great if you are practicing Real Estate without a license. You can only sell your OWN property without a license.

Answer 4

Might get more money by selling to outside party. Might be quicker to sell it to family though. I bought my great aunt's house last summer after she passed away. My family offered it to me cheaper than they would if they had a realtor sell it. They just wanted to get rid of it fast because insurance and taxes are high for unoccupied homes.

I'm glad they wanted to keep the house in the family, worked out for me, and now I have a piece of my aunt with me every day.

Answer 5

Why you bother about number of members

Sell for the highest price