[USER]

My dad owns a house in Arizona and offered to sell it to us at below market value. House is currently 500,000 (no mortgage) and he’s offering 400,000. We own a home currently valued at 390,000 and have a mortgage of 220,000 left. His house is in a location we would like to move to. I’m going to set up an apt with an estate lawyer but wasn’t sure options to ask about. We’ve tossed around selling our current house, giving him the equity and taking a mortgage for the remainder but didn’t know if that would have to be at current market value. A friend mentioned going through a trust but I didn’t quite understand. Any input or articles would be greatly appreciated

[Bryon]

Absolutely does not have to be at market value. You could technically buy the house for $1.

[Sandra]

Mortgage company won’t care if you buy at less than market value. The difference might be considered a gift but unless the estate exceeds the value at which the IRS cares about such stuff, that won’t really have an impact either.

If you actually want to live in the house and at that location, seems like a great deal.

[Andrea]

Look into like kind exchanges.

[Nicole]

Rent from him and inherit it at death.

[Lindsay]

Get quotes for home insurance as they will insure based on the home’s value and not what you paid.

[Author]

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