Nostalgia, goodwill, or convenience are reasons why many people choose to sell their home to a relative rather than put the property on the open market. That arrangement can work wonderfully for everyone involved if you adhere to the following guidelines:
Pay a Realtor a flat fee or hire a real estate attorney who can impartially handle the sale logistics without jeopardizing family relationships.
Get both an inspection and an appraisal, so everyone has a clear understanding of both the home's market value and any deficiencies. Factor the results into a mutual agreement on the price of your home.
A sale price below market value could subject your relative to a gift tax.
Be aware of the legal limitations involved. For example, you can neither sell your property for less than your mortgage balance or count a discount as a tax deduction.
Don't rely on verbal agreements; put everything in writing to protect everyone's interests.