Home Sales Involving Personal Relationships
When a friend or relative wants to purchase your property; proceed with caution. These transactions can compromise both your relationship and your home valuation. Your friend or loved-one may expect a discount, and refuse to pay market value for the property.
Consult your tax advisor when considering selling to a loved one, as you might be able to claim certain relatives as dependents, which can trigger tax benefits that will help you recover your sale expenses. Hire a lawyer to draft legal documents that itemize the agreement between you and your friend or loved one.