Plan B: Buying a house from my brother.

[CTrain]

PLAN A never got serious.
I guess you guys were right....too many issues.
He and his GF got re-approved for a better loan now anyhow.
Any, here's a brief run-down on the house I'm going to buy from my brother.

- Me and my 3 sisters been living in this house off and on for over 10 yrs now.(I'm currently living here now)
- Its in my brothers name but it was my mom who made the original $15K down on this house.(He still owes my mom this)
- He never actually live in this house but he did from time to time pay for the mortgage when only 1 of us were living in the house.
- Basically my mom made the down payment(15K, paid $80K for it) and us 3 were paying for most of the mortgage.

So housing median were around $120K just 2 yrs ago in ORLANDO but now its more like $220K.
I've been living in this house pretty much for 10yrs now and I never thought much of it but I don't see myself affording a $220K house by myself now.

I've been doing a little researching and the last house in this neighborhood(around the same size) sold for $153K back in Oct 2004. I'd say its worth $170-180 now.
My brother thinks its worth around $150K.
My mom thinks he should sell it to me for $120K

I'm using my mom as my negotiator.
I would like to buy it for $135-140K.
I mean hes making around $50K for really not doing anything so $135K is pretty fair.

Anyway, whats the easiest way for him to transfer the house to me ??
Do we have to do the normal seller/buyer thing ??
Would it be legal for him to sell the house to me(on paper) for what he paid for it($80K) ??

 

If he sells it to you for the full value and doesn't buy another (more expensive) house in the next X months (not sure of the time frame) he's going to be hit with huge capital gains taxes.

CPA should confirm, but this is what happened to my parents.

 

[alkemyst]

Originally posted by: jumpr
If he sells it to you for the full value and doesn't buy another (more expensive) house in the next X months (not sure of the time frame) he's going to be hit with huge capital gains taxes.

CPA should confirm, but this is what happened to my parents.

i don't know orlando too much but $220k seems way too low.

in west palm beach homes are 'averaging' $340k.

all your stories are way to complex though.

the property owner is the owner...end of story.

making $50k in florida is crap. House next door sold at $150k in 3 days, back up at $250k before the original sign was taken down...people looking all the time.