FireDream

Some Tips if You’re Thinking About Buying the Family Homestead

Do you ever miss the feeling you get when you go to your parents’ house?  Somehow those weird ceramic owls that your mom made in the 1970s and those awesome stickers that you used to decorate your dresser all worked in creating that comfort that you only can get when you sleep in the same room that was yours in high school

But here’s my question: would you ever think about buying the place?  I found a great article from washingtonpost.com that addressed that very issue.  Believe it or not, it’s not that unusual for adult children to purchase their childhood homes either from their parents directly or from the estate after their parents pass away.

Depending on your circumstances, buying your family home can offer a lot of benefits and can be great for both you and your parents and/or siblings.  You know the neighbors, the local shopping locales, and all of the best ways to get to and from your house from all of your favorite hangouts.  But there can be some less-than-ideal consequences too, as spelled out in the Post article.

If you’ve thought about moving back home (only without your parents actually living there, of course), you’re going to want to consult your accountant and/or your attorney.   There are laws that govern gifts from parents to children, and if your parents are the ones from whom you’re purchasing the property, you’ll want to make sure that every “t” is crossed and “i” is dotted.  Keeping everything above board is also important if you have siblings-heaven only knows that smaller things than buying the family homestead have brought brothers (and sisters/aunts/cousins/girlfriends, if you’re to believe the kind of hype that used to make regular appearances on Jerry Springer) to blows.

It’s also important that you involve your mortgage banker as part of the transaction to make sure that all of the lending requirements are also met.  Being upfront with the terms of the sale will prevent closing and funding problems once you’re ready to sign the final papers.

Now comes the really tough decision: what to do with those freakish ceramic owls….

This blog is intended for informational/entertainment purposes only and is not meant to provide any financial or legal advice.