Buying your Family's home

3 Replies

Hello

My husband and I are seriously considering buying his mom's home. We love the house though it needs a lot of work and we believe it can be a very good investment, plus we will love to have it for posterity.

Has anyone done sellers financing with a family member? Anyone knows of a good lawyer in Colorado Springs, and inspector?

Any thoughts on how to proceed?

I’ve been using Dave Mctague and his team at Premier One Home Inspections for 8 years and highly recommend him - can’t post his phone number but you can Google him.

 @Camila Lohr , I've done what you are asking for clients. I can't really recommend the inspector and attorney as I'm a little south of Colorado Springs. Here's the steps I would recommend you take after finding an attorney and inspector. 

Find an agent in the Springs that will help you with the paperwork side for a flat fee. Attorney's typically don't give advice on the ins and out of the entire process but you may find one that will and if that holds true then use them.

Here is the process. 

Have the agent give you a market analysis on the property as it is and agree with the mom for a purchase price and terms  (down payment and interest rate).


The agent can then create a listing contract for the mom and can write up the offer for you taking care of the standard items in a purchase contract, inspections, title, insurance and appraisal. The attorney will create a Deed of Trust and prepare a Promissory Note for the agreed upon down payment and terms of the loan (length and interest rate) and those documents will become a part of the purchase contract.

Good luck.