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Can I sell my house to a family member and avoid costs

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chrissy63078

Junior Member
What is the name of your state (only U.S. law)? Pennsylvania. I would like to sell my house to my mother for what I owe on the mortgage. I would not be making a profit and would like to avoid paying Real Estate commisions. Can you advise what process or steps I should take to make this sell take place.
 


OHRoadwarrior

Senior Member
Contact a real estate attorney and have him draw up the paperwork. I bought mine in a similar manner. She will want title insurance also, I would guess.
 

justalayman

Senior Member
Did you have to pay for closing costs or out of pocket expenses.

somebody has to pay closing costs. There are certain costs that are costs no matter how you sell a house. Your mother can pay the closing costs if she is willing. If not, you will have to pay them.

Is she paying cash? If not, her lender will likely require certain items as well such as lenders title insurance, an appraisal, and possibly a survey.
 

OHRoadwarrior

Senior Member
Closing costs are what is required by the loan originator. I would seek a lender that waives them for her new loan. She will incur costs for sales tax, appraisal, attorney fee and title insurance. She can waive the elaborate sales agreement as to what will stay and what will go, if she trusts you will not play games on things. this can simplify the agreement and lower attorney fee.
 

chrissy63078

Junior Member
I owe $128,000 on my Mortgage the house is valued at $150,000. I just want to sell to my Mom for what I owe on the Mortgage (no profit). Should I get in touch with a Real Estate lawyer? I tried to contact my Mortgaget co just to have them essentially transfer the mortgaget into my Mom's name, but they don't do that. They told me to contact a title company to do everything. I called the title company. I just want to do this transaction without having to pay unessessary fees. I understand having to pay for fees like taxes, insurance, appraisal, etc... I just don't want ridiculous fees to someone just so they can make some money.
 

xylene

Senior Member
By alues at 150K i assume you mean you bought it at that...

I owe $128,000 on my Mortgage the house is valued at $150,000. I just want to sell to my Mom for what I owe on the Mortgage (no profit).
That is not "no profit" - that is a 22,000k loss.
 

chrissy63078

Junior Member
I understand that it is technically a $22K loss, however my Mom will be getting the equity and not a stranger. I currently have it on the market with Howard Hanna for $139,000 and I have not had any luck. If I were to sell with a real estate agent I would be paying $10,000 in commision fees and after all is said and done I might end up with $1,000 after the sale. I would rather my Mom get the profit on the house than a total stranger.
 

justalayman

Senior Member
She will not be paying cash. I will need to help her obtain an FHA loan. So that she will not have to put up a large down payment.
then somebody is going to have to pay (most likely) appraisal fees, possibly survey fees, document fees, recording fees, transfer taxes, any fee the closing agency might charge, inspection fees (for FHA), and maybe a few others.

You will avoid the big one though: real estate agent fees.
 

nextwife

Senior Member
Closing costs are what is required by the loan originator. QUOTE]

For clarification, even sellers whose buyers are paying cash incur assorted closing costs.

Transfer Tax, seller side municipal letters for proration, seller doc prep (deed, transfer return, if any, recording fees for any releases, any municipal code inspections that may be required before transfer, as examples. In my market, the seller also provides the owner's policy in the majority of transactions as well. Well and/or septic inspection, clearwater inspections and so on.
 
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Ozark_Sophist

Senior Member
then somebody is going to have to pay (most likely) appraisal fees, possibly survey fees, document fees, recording fees, transfer taxes, any fee the closing agency might charge, inspection fees (for FHA), and maybe a few others.

You will avoid the big one though: real estate agent fees.
I question if OP can avoid real estate agent fees--especially if a contract is still in effect.
 

justalayman

Senior Member
I question if OP can avoid real estate agent fees--especially if a contract is still in effect.
what contract? Did I miss something?

yes I did

I currently have it on the market with Howard Hanna for $139,000
Sorry Chrissy. Unless your contract specifically exempts relatives, if you sell the house to your mother you will owe a commission. There is more than likely a period of time after the contract expires that should you sell to your mother, you will still owe a commission.
 

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