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Arms length transaction in probate12/13/2023 ![]() CPA: It’s important to consult with a tax advisor on any tax events triggered by the sale to a family member, especially if you sell significantly below market value.Appraiser: Knowing what the home appraised for at the time of sale will be critical to document as a reference point.Home inspector: No matter how much trust you or your relatives have that your home is in great condition, a home inspection is an important step in any home sale.Our online tool is free to use and can provide an estimate of home value in minutes. It’s not a perfect gauge of value, but it can help you orient your expectations for the next steps. Home value estimator: An instant home value estimate can be a useful starting point.You can easily find a top agent with relevant qualifications for the job through HomeLight. ![]() Real estate agent: For a reduced commission rate, an experienced agent can help minimize challenges and coordinate the sale.The following resources may also be of assistance in your family sale: Familial strain: Disagreements about the process can cause some strain between family members if things don’t go according to plan, and that’s another possible risk to be aware of when selling a house to a family member.The entire deal may be completely above board, but lenders might see a higher potential for fraud and may require some extra steps to get you all squared away. Financing hoops: You may face additional scrutiny from the lender if your buyer will use a mortgage for their purchase.You should also be advised of the capital gains implications, particularly for the relative receiving the home, if you gift the entire home. Taxes: It’s not a guarantee that you’ll owe taxes, but you may have to report a “ gift of equity” that exceeds a certain amount to the IRS.You will just need to prepare for some additional complexities, such as: Not to worry, it is definitely possible to sell your house to a family member.
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