Selling a home to a family member is a lot more common than you may expect. The National Association of Realtors does a study of buyers and sellers every year. One of the questions they ask sellers is, “did you know the buyer before you started the process?” In any given year, between 3-5% of sellers know the buyer in advance. It’s either a family member who buys it out, a neighbor, or a friend.
Mechanically, it’s a simple process to sell your home to a family member. If you are interested in selling your house to a family member, start by going to a title company. If you are in Denver, you can go to First Alliance Title. They will help you out. Starting with providing the documents you need to transfer the house from one family member to the next. The new person purchasing will probably also be getting a loan. The title company can coordinate closing costs, so you don’t have to pay for doing it twice! So, if you are in Colorado, it’s a pretty easy process.
If you are in another state, we suggest still reaching out to a title company. The title company will be involved regardless, but you may also need an attorney to draft up a couple of documents depending on which state you are in. Overall, it is an easy process. You will probably get the whole thing done just as fast as you can get the loan arranged, which generally takes about a month.
Please do not hesitate to reach out to an agent on our team as soon as possible. We also offer up to 40 free classes a month to our agents and their clients. There are in-person and/or virtual formats available. Check out our training calendar for the most up-to-date offerings. Be sure to also watch this video with our founder, Lon Welsh, for more details on what inspections are needed when you buy a house!