Looking to Buy Your Parents Home?

This may not apply to everyone, but maybe it can to you or a friend's situation, especially where many of us are still living with our parents here in the Bay Area: I’ve just assisted a client here in Santa Clara who purchased their parents’ property. This is a much easier process towards home ownership than trying to find and buy a new home, especially in today’s super competitive market. In this unique situation, this client purchased the property for under a million, while its market value was over $1.2 million. Here are the details: - Parents owned a home with an existing loan. - Child bought the home for below market rate (which leads to a lower monthly mortgage payment), using a conventional loan with 20% down. - Parents paid off the current loan, and will be using proceeds to purchase a home, all cash, at their retirement destination of Las Vegas (where you can get a lot more home, with a lot less money). Summary: Your parents may agree to sell to you at a much more reasonable price, especially since you would have first-hand knowledge of the maintenance / improvements completed on the home. Buying your parents home can help you save a bunch of money on unnecessary costs.