what if my daughter was to buy our $450,000 home assuming our $200,000 mortgage & giving us $200,000 cash? What is the effect on resale value?
(0) | asked by: LINDA CAMPBELL | share | 22 months ago | Report
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Viewing Answers 1 - 15 of 15
Hi Linda, I've in the past had a client do the same thing as you just asked. It does not have any effect on the re sale value of the home whatsoever.If you would like to see what the value of your home is, please do not hesitate to give me a call, there is no fee to do that for anyone.
Hi Linda, I've recently had another client do this exact thing with their son and there is no effect on the resale value. If you would like a Market Analysis done on the home to know the current market value, this is normally offered by agents for free. Thank you!
Hi Linda, Market value is market value. It does not matter if a home was purchased at a huge discount, or if it was purchased at an inflated price, when it is time to sell, the local market and recent sales will dictate the selling price.
Linda, I would need more specifics on your situation. If your home based on current appraisal is $450,000 then you your future resale value should be based on what the "future appraisal will be". Also keep in mind if she has made improvements and the there is a demand ,value should be higher based on your coomunity. Feel free to call we can chat. Linda Sicotakis
If you would like to contact me I can explain better and more clear.
Have a real estate professional come and do market a analysis on the property , your bank might also require one .
Hello Linda, The resale value of your home in the future will be based on what is happening in the market at the time of the sale, ie: what homes similar to your home are selling for and not on the financing at time of purchase.
I agree with David Benton. This is not an "arms length transaction." As such, it should not affect the area market or the resale value. That will be determined by the market value at the time your daughter sells the property, not the price she paid for it.
Hello Linda, There are typically 3 different ways of valuing a property: 1, Calculate the cost to build 2, Calculate the cost to finance (if leased) 3, Resale comparables. Residential Realtors will usually use the Resale Comparables method and access the huge database of sold comparables (the MLS) to determine what similar properties have sold for recently. That database doesn't include private sales, only public MLS sales.
hi, The resale value will be based on the comparable sales in the area usually within a 90 day period.
No effect on value. Just make sure your home is indeed worth $450,000 and your daughter uses a lender which understands what you are intentions are. I have an excellent & experienced mortgage broker I would be happy to refer you to. She understands complex and sometimes creative financing situations.
If you deeded your home over for $1 it still has no effect on market value. Market value is determined by what are referred to as "Arms Length Transactions" meaning no relationship (special friendship, kin or business) between buyer & seller.
Hi Linda, It won't have any effect on resale value. Homes sell at current market value, regardless of previous sale price. Your daughter will have to qualify for that mortgage though, so talk to your lender to get that sorted out!
Agree with Nicki. Ultimately the buyer's will decide what they are willing to pay for a property given the current market conditions at that time.
Hi Linda. How the home was acquired has no bearing on the re-sale value. The re-sale value is determined by homes that sold nearby and similar to yours. Does this answer your question?
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