wazzup ladycygnus! Or should I say, hey dude! (just kidding)
You know, I've seen this a lot, and I've experienced it myself a number of times. A "deal" or "opportunity" comes up, or someone in your life suggests you consider some sort of financial deal, and suddenly something that was not even in your consciousness becomes a major life decision. And more than most younger people can even guess, this sort of thing also can become a major life turning point--in a good or bad way.
I have something that the majority of this forum's members don't (since most seem to be in their 20's and 30's)--some lessons learned painfully from making just about every stupid financial move possible over a period of decades. From this perspective, I have a few points/questions for you to ponder:
-Was buying a house right away a top priority for you before your parents lovingly butted into your life to suggest this purchase? It's an important point. Home ownership shouldn't be entered into casually, because someone else thinks it's a good idea. It takes money, time, work, knowledge, and it doesn't necessarily always pay off. A highly motivated person will do their homework in order to be able to run the numbers for a property in order to decide if it's a good deal or not, and they'll pass on it if it's not the best deal they can get. The casual buyer buys and takes his/her chances.
-Are your parents real estate experts? I'm probably around their age, and if I am, we came from a time when it was hard to lose money buying a house. You just buy any old house and wait, and voila, you have a boatload of equity. That's much less true now, but a lot of us cling to that mindset. It's still very possible but you have to be pickier and more knowledgeable. You have to buy the right properties. If your parents aren't active real estate investors they might not understand what it is to buy real estate these days.
-Is this house where you want to live for some time? Is this the type of house you want to live in? Do you have a good job, a career job that you're going to stay in long term (or until you reach FI)?
It seems to me that you're considering buying this house because it's for sale and you live there. The fact that you live there is just random happenstance and has nothing to do with whether or not the house is a.) a good deal, or b.) right for you. So, it's very much like putting a map of your area on the wall and throwing a dart at the map to decide what house you'll buy. Right now, in other parts of your city, other home owners are also deciding to sell their homes. The fact that you don't live in any of those homes should have no bearing on whether you should buy one of them over the one you currently live in. You have a bit of an emotional attachment to this one because you live there and you know the onwer. Very understandable. I'm typing this email IN THE LIVING ROOM OF THE HOUSE I BOUGHT FOR THE VERY SAME REASON. This house is definitely not my idea of my ideal home, and I would have been so much better off buying something else, but that decision has already been made (13 years ago).
Knowing what I know now, what I would do is this: Take a couple of months to really learn about real estate investing. On a dollar per hour basis, this learning will probably end up being some of the most lucrative work you'll ever do. Then, look around your area, identifying homes for sale that meet your "must have" criteria. From there, focus on the *best* deals. Maybe the place you're living in right now will end up being a great deal, but if not, you need to pass. Never let anyone, even your parents, persuade you to do what is not in your best interest financially.
PLEASE READ THIS PART, EVEN IF YOU'RE BORED WITH THIS LONG RANT: A huge mistake I made three decades ago is to think that I was young and had all the time in the world to make money. Like most young people, I didn't realize how CRITICAL it is to make really really good decisions when you're young, because over time the money you make by making juuuust the right decision grows exponentially while the money you lost or failed to make dies on the vine right there or becomes an anchor that also grows exponentially.
I like to look at it this way--consider yourself to be a rocket going on a 40 year journey to a far off planet at nearly the speed of light. In the beginning, the tiniest course miscalculation, left uncorrected, will mean that you'll be millions of miles off course by the time you start getting close to the destination, requiring huge, wasteful corrections later. You might even run out of fuel before you reach your destination. If you've been vigilant the whole time, making the proper small corrections the whole way, by the time you're close to your destination you can make 90 degree turns or go in circles or go sightseeing to other nearby planets without any serious consequences. It's the same with your money. Make the very best choices early on, and they'll pay off massively later.
BTW, you mentioned saving money on taxes. A mortgage owner "saves" money on taxes by spending much more in mortgage interest. For example, I paid about $1360 in interest last month, and that affords me a monthly tax break of about $400. Yes, my equity increases as well. All I'm saying is that this is yet another thing you have to throw into the pot to see if your specific situation favors buying a particular property.
Oh, rereading your post, one last little thing: why is the owner so anxious to sell to you? That would totally raise a red flag for me.