Author Topic: My mom wants to sell her house to me - best way I can turn it into a profit?  (Read 2463 times)

Emergo

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So my mom wants to sell her house. She says it would be a waste if she just lets it go. i wish i could just inherit for free (not sure if thats legal). The house isnt at a great location that i like and the house isnt in the best condition. Why should i be interested in this house? Maybe you guys know a way i can make this work out between me and my mom. Btw i live with her and dont have a house of my own. So is there a way i can work out a deal where i can get the house cheaper than anyone could have it for and she gets her moneys worth? She says shes owned it already for 13 years on a 30 year plan. And i think the approximate value would be $120k for the house. Honestly if i could get a good deal, ill probably just rent it out.

overwhelmed

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So my mom wants to sell her house. She says it would be a waste if she just lets it go. i wish i could just inherit for free (not sure if thats legal). The house isnt at a great location that i like and the house isnt in the best condition. Why should i be interested in this house? Maybe you guys know a way i can make this work out between me and my mom. Btw i live with her and dont have a house of my own. So is there a way i can work out a deal where i can get the house cheaper than anyone could have it for and she gets her moneys worth? She says shes owned it already for 13 years on a 30 year plan. And i think the approximate value would be $120k for the house. Honestly if i could get a good deal, ill probably just rent it out.

I guess I'm a little confused.
She says it would be a waste if she just lets it go.
What does she mean 'let it go'?

Do you qualify for a mortgage? If you do, find out actually what she could sell it for & she can decide what amount (perhaps lower than market value) she would be willing to sell it to you for.

You haven't provided any insight on your mom's financial situation, the money she would get from selling the house would be money she would be using to live or for her new place? How much does she owe on the house that she would still need to pay off?

Years ago I purchased a house from my father at a lower than market price amount that worked for for both of us.
It was not crazy low but it was less than he probably could have gotten. There was work done without permits, that needed to be straightened out, some things to fix etc. So we took it on & he was able to sell with no hassle.

Getting a good deal is great but it seems you are trying to get a good deal from your mom, what would she be getting?


former player

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It sounds to me as though renting out a house which is not in the best location (makes it difficult to find good tenants) and is not in the best condition (also makes it difficult to find good tenants, and will mean constant input of time, money and expertise in repairs and maintenance) would be a bad idea for anyone other than an experienced, professional landlord.  I mean, I've got two rentals and have been renting property out for 6 years, and I wouldn't take that on: even if I put money into getting it into good repair there's nothing I could do to change the location.

If your mother sells, she will get 1) any equity she has built up, 2) away from the need to put money and effort into repairs and the burden of it's ongoing maintenance, 3) the freedom to chose where (and with whom) she lives.  I don't get why any of that should be a "waste", particularly if that's what she wants.

There is no way in which your mother can get full value for the property unless someone pays her full value.  You can get the property for free only if your mother dies and leaves it to you: please don't take this as a suggestion that you should kill her and forge a will in your favour.

I don't know what your situation is, other than that you live with your mother.  But if you are of an age and ability to work, then you should be working your way to improving your financial situation rather than wishing for someone else to give you something for nothing.

Emergo

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Perhaps by let it go she means its a nice house in her eyes.

The money would be going to her living expenses in the philippines. She has a house there.

Btw what i meant about the location is that its far from my work. The neighborhood isnt bad and its close to the freeways.

boarder42

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you're all over the place with your posts here i feel like.

it also sounds like you dont understand how buying and selling houses works.

You can give your mom any amount of money you want for her house.  A fair amount of money would be what the appraised value is.  if she wants to discount it b/c you're her son so be it. 

To make the transaction you can have a Real Estate lawyer do all the paper work for a small fee no real estate agents will be needed.

But you should be asking if the house is even worht you buying you say it needs repair.  you need to have contractors quantify how much that is for you. Then you need to go read the entire Bigger Pockets blog/forum and understand if its even a good investment to be rented out after the purchase cost and needed repairs.

I'm willing to bet it doesnt meet those requirements but it could.

Real Estate is a great way to leverage your money and make profit if done correctly just look at ARS.  But if dont incorrectly it could be a nightmare and lose you much more money than just putting it in index funds. 

You dont sound experienced enough currently to make this investment.  So i dont think you should do it until you have educated yourself. 

Now if/when you decide its a bad investment or you dont want to acquire the knowledge to be a smart RE investor and she wants to sell, Find a low cost real estate agent.  In my area there are flat fee full service agents.  Meaning they take X dollars if your house sells not X percent.  I sold my house and saved 5k in real estate fees using this service. 

bugbaby

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The only money you should save from buying a house from your mother is realtor fees.

Get it appraised and pay her its fair value​.

Make sure you're ready to take on the work and expenses of home ownership.

Sent from my Nexus 5 using Tapatalk


Dee18

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This fall mother and my sister made a plan for my sister to buy my mother's house.  My sister was willing to pay the fair market value, minus realtor's fees, but wanted my mother to finance the sale. (My mother is very well off and would have benefited from the interest rate my sister would have paid.)  They pretty much had things worked out. Then my mother contacted a lawyer (not a real estate lawyer, a friend's son).  He suggested terms that were slightly different than what my mother and sister had been planning.  The differences were small, but resulted in the deal falling through.  There were bad feelings on both sides.  Just a note of warning!

KBecks

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It sounds like you don't want the house.  So, why not have your  mom sell the house on the open market?   Where does your mom plan to live after she sells the house?

Do you have any money to buy a house with?

I think when you are ready to buy a house, you should pick a house that you like.

Until then, your mom needs to decide whether to sell her house or to keep it.  If she is struggling to make payments or repairs, maybe you can pitch in some rent to help her with that.  Make an informal contract for how that will work. 

Don't worry about inheiritances, it's too soon.  Enjoy your relationship with your mom, but don't buy her house.  You're not interested.