In these days of housing shortages and bidding wars it can seem like a dream come true to buy your parents’ house. But as with anything, don’t just jump in without considering multiple factors.
Are other family members on board? Will there be hard feelings?
Selling the family home can be hard, especially if there are multiple siblings involved. Make sure everyone knows about it from the beginning and is in agreement with how much they know about the terms of the sale.
Is your family relationship strong enough to withstand disagreements that may arise during the process?
There may be issues and disagreements that come up during the selling process. Is your family relationship strong enough to handle that? Don’t put good family relations at unnecessary risk.
Complete a Seller’s Disclosure Statement about the condition of the property
When you sell a home in Minnesota the seller is required to complete a statement about the condition of the property, whether involving a Realtor or not. If you use a licensed Realtor, your Realtor will provide you with the statement. If not, another option is to download a form from the Minnesota State Bar Association.
Have a home inspection, just as you would when purchasing any property
It is easy to overlook or be unaware of a property’s condition, even if you live in the property or visit it regularly. A professional home inspection will help you move forward with your eyes wide open, making decisions about who is going to do any needed repairs, or adjusting price to accommodate the cost of work to be done. Don’t forget to also address the condition of fireplaces, presence of radon and the viability of the sewer line from the house to the street, which is the homeowner’s responsibility and could involve a costly repair.
Get a professional price opinion/appraisal to determine the value of the property
In this crazy market, you could potentially get a higher price if you put it on the open market and get multiple bids. Take this into account when setting a price acceptable to both sides.
Set realistic target dates and deadlines
Be firm on closing date, complete with removing all personal possessions not staying with the property… just as in a traditional sale. It can be too easy to be very relaxed and end up with the property becoming a storage unit for your parents’ stuff. Sellers dealing with their stuff is often the hardest part of the process. There are many services that can help with that if you need it, such as Gentle Transitions, Empty the Nest and Clutter911.com.
Get professional help
Seek the advice and professional help of an attorney or Realtor for the actual transfer of ownership. There is more involved than you may think. I provide that kind of service for a flat fee, as I am sure other Realtors do as well.
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
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