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llecs
Posts: 31,472
Registered: ‎08-04-2007
Thinking about buying

‎03-05-2009 07:35 AM

With the $8,000 tax credit floating out there and with prices at a low, DW and I are thinking about taking a plunge.

We are renting from the in-laws (they live elsewhere) and they want to give the house to us. That isn't possible because of gift taxes. But they can sell the house to us at market value. Our CPA advised us to get an appraisal to use as a basis for the loan amount.

When getting an appraisal, is it advisable to get more than one estimate and then choose the lesser? Would all result be ballpark? And how close are appraisals to the taxing government's estimate (e.g. I live in Fairfax Co., VA and Fairfax Co. will send tax assessments based on their preceived value)?
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DallasLoanGuy
Posts: 5,213
Registered: ‎07-03-2007
Re: Thinking about buying

‎03-05-2009 07:43 AM

Check the rules. Buying from family may make you ineligible.

Or did that change?

 




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llecs
Posts: 31,472
Registered: ‎08-04-2007
Re: Thinking about buying

‎03-05-2009 08:03 AM

Are you referring to the $8000?
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DallasLoanGuy
Posts: 5,213
Registered: ‎07-03-2007
Re: Thinking about buying

‎03-05-2009 08:19 AM

yes, sorry.

 




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llecs
Posts: 31,472
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Re: Thinking about buying

‎03-05-2009 08:30 AM

I guess I should confirm. Might put a monkey wrench in our plans if true. I thought that a spouse couldn't sell to a spouse or to anyone else within the household.

How about the appraisal question? Do appraisals vary widely if more than one is given? I met two appraisers a couple months ago. One was fresh out of college and the other has 30+ yrs experience. I was thinking that with two different experiences would result in two different results.
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DallasLoanGuy
Posts: 5,213
Registered: ‎07-03-2007
Re: Thinking about buying

‎03-05-2009 09:01 AM

Check into it... 

 

Lender orders appraisal anyway. And while they can vary.... if they vary too much, then one is wrong.

The data is there... only so much manipulation can go into it and u/ws can spot that! 

 

 




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llecs
Posts: 31,472
Registered: ‎08-04-2007
Re: Thinking about buying

‎03-05-2009 09:16 AM

Thanks for the info. So I take it a lender wouldn't consider an appraisal if we found someone locally to do it? I suppose there's always the room for fraud or an appraisal buddy purposely hiding stuff or changing this or that within an appraisal.
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Senior Contributor
Wonderin
Posts: 3,494
Registered: ‎05-25-2008
Re: Thinking about buying

‎03-05-2009 09:25 AM

I don't know if I'm tiptoeing too close to the unethical edge, here, but technically, if YOU buy the house (without Mrs. Ilecs), you CAN claim the credit.

This is EXACTLY what the IRS says:

Q. Who cannot take the credit?

A. If any of the following describe you, you cannot take the credit, even if you buy a main home:
* You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.

 

No mention of in-laws in there. Like I said, though, that might be pushing it. :/

~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*~*

Hubby's FICOs when we started: high 400s (June 2008)
Hubby's FICO NOW (04/06/09): TU: 679 EQ: 608 EX: ???
My FICOs: TU: 643, EQ: 606
Closed on new home: 1/20/2009 -- If we can do it, YOU can do it!!

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ladyofnight
Posts: 602
Registered: ‎02-06-2009
Re: Thinking about buying

‎03-05-2009 09:47 AM

It's possible the law considers in-laws your parents if you're legally married.
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Super Contributor
DallasLoanGuy
Posts: 5,213
Registered: ‎07-03-2007
Re: Thinking about buying

‎03-05-2009 11:14 AM

llecs wrote:
Thanks for the info. So I take it a lender wouldn't consider an appraisal if we found someone locally to do it? I suppose there's always the room for fraud or an appraisal buddy purposely hiding stuff or changing this or that within an appraisal.
lenders usually don't allow the buyer to pick. 
 

 




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