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Anyone Here A Realtor? (Or Real Estate Lawyer) I have a question...

1K views 33 replies 15 participants last post by  Loki047 
#1 ·
I semi-asked this here already, but am getting conflicting answers from all over...so am kindly asking for those to answer who have either direct experience, or know the actual answer (instead of just every opinion on what they may think to be accurate). :)

My mom would like to sell me and my girlfriend her house. It used to be worth roughly $800K when the market was good. Zillow currently estimates it at like $550K. But, it needs updating. New roof, new flooring, new kitchen/appliances, etc. Everythings basically 20 years old and needs to be replaced. The architecure and size of the house are amazing, just that it needs updating.

So, considering its sort of a fixer upper, could she sell it to us for $320K? (the mortgage is less then that)

I'm having some people tell me she can't sell it for that cheap because the city won't allow it. While other people are telling me she can sell it for whatever she wants because its her house.

My thoughts are, just like a car, you can't sell someone your car for $1 because the stupid govt gets involved and they want their fair cut of the taxes, so...does the same apply for a house (even though there are no sales taxes per se on a house).

Side note...anyone on here a real estate appraiser that could hook it up with a good deal?
 
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#3 ·
When you go to have the property assessed, that result will determine what the house is worth, and what you will be taxed on. The assessment has to be done before closing. I believe the buyer pays for the assessment, not the seller.

Also, the assessment will determine how much the seller will have to put up for the partial year of property taxes, which will go to the buyer.
 
#7 ·
Large house (4,000+ square feet). Amazing architecutre / floor plan. Balconies from the top floor, go to middle floor, go to basement, like stairs. The house is gorgeous, just needs updating. 1 acre lot in Downers Grove. Worth tons of money. Downers Grove home values have sky rocketed...even now with the market as it is. House across from us was updated and addition put on. Sold for $750,000 and they don't have the architecture or land we do.

So, if she was to give it to us for very cheap, we'd have a great house with instand equity.
 
#14 ·
:nono: And part of the reason the housing market was so overinflated. Appraisers who care about the viability of their business are no longer willing to risk the liability therein.

Im no estate tax expert but I believe there are rules about this sort of "gifting" and I would think despite selling it for a dollar, taxes would be paid on the assesed value.

FWIW, a friend just bought a 0.27 acre lot in DG for $400k.
 
#6 ·
Appraiser and Attorney information sent... PM.

As far as I know (worked in real estate law for 12 years), the tax payable to the State and County will be based on the PURCHASE PRICE. The annual Real Estate taxes will be based on the COUNTY's Assessed Valuation. Neither is based on your appraiser's determination of value. Keep that in mind during this transaction.

Lord willing, the contacts I provided you will be of assistance, since they all have plenty of experience and are more than willing to answer any of your questions.

Good luck!
 
#18 ·
I'm glad you're getting good info. Some of the advice posted can get to be a little confusing and every situation is different.

The sale between related parties would not be considered an "arms length transaction" and would not be flagged as unacceptable, so selling the house to you at $300K would definitely be adequate.

Good luck!!
 
#24 ·
And if he had a dp it seems he would buy that house, assuming its not already in the family. he wubs that pad.
 
#28 ·
Your mother can sell it to you for the price in question. Considering the market conditions, no one is going to question anything. You said the house needs updating , if its a fairly large house, it will cost 100k plus to update (retail) .Easy justification to the assessor . I have gone through this before and didnt have a problem at all . Just do it if you like the house. If you qualify for first time buyer , you will get $8000.00 from the IRS. You should also be able to go FHA since the house is under $358K . That means 3% down. Pm me if you need a lender . He will close it in two weeks. FYI , only YOU on the deed . no girlfriends . Good luck !
 
#29 ·
Im still wondering why she would sell him the house rather then giving it to him.
 
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