Buying from family - pros and cons please!

[BagORats]

NC as family members are on here!

We are considering moving to a bigger house. My DHs close family member is going to be selling their very nice house within the next year, which suits us perfectly. We haven't broached the idea of us buying it yet. Are there any pros other than not having to pay estate agent fees? We would have to get a valuation done so we would be looking at paying market rate, so I don't imagine there would be much if any bad feeling with negotiation and very very little room for any fallings out.

Anything we haven't considered would be welcome!

Only experience I have of this is my sister's SiL has just bought her MiL's house/ her DH's childhood home (does that make sense, it just about does to me!!) All was going fine and the MiL had agreed to go into rented accommodation if she couldn't find a new house before they were ready to move. Fast forward to a week before they were due to complete and she decided she no longer wanted the stress of moving out into a rented property... SiL and DH felt compelled to go ahead and complete against legal advice from their solicitor so now they and their two young children are living in the house and paying the mortgage whilst MiL and all of her possessions are still in the property 🤦🏻‍♀️ MiL is apparently not in any rush to find somewhere else, is not taking kindly to any of the redecoration ideas that they have and is being a nuisance to get rid of but they're stuck with her! So maybe just beware of being too lenient with things if it's a family member, boundaries are still important!

See the thread about selling to a friend! All the warnings apply here (mainly stuff going wrong after the purchase than you be on speed dial forever more, or in your case the reverse - every issue will feel like the seller withheld info on purpose and resentment will build up!).

We’ve thought about this twice, due to house inheritance. But one of the pitfalls could be that those who previously owned the house, or lived in it as children would always have a vested interest in it.
Comment on any changes, or feel they could visit whenever they liked. A bit like PPs SILs MIL .

I bought off my sister...mums old house....we had 3 valuations done to get an idea of worth...sister chose the highest valuation and not an average as she thought i was getting a good deal anyway....value of house since buying it off her has gone up by 550k so not moaning !..she never visits or takes any interest as was not very happy there as a child.

Thanks all - just want to clarify this isn't a childhood home, the current owners have only been there for 5 years or so, so there shouldn't be any issues in that regard. Taking it all on board though!

My family have done this too (but its a flat which was a home, & now another sibling is buying it as a BTL)

Pros:

• main one: communication during the house buying process so less stress
• more flexibility on both sides re timing
• you should know what state it is in/may not need a survey if they give you the old one (for 5 yrs old prob ok), & would be aware of issues with neighbours/security/pests etc
• not going to strip the place bare probably!
• for them: they can pocket the EA fees, I would suggest splitting the difference
• for you: you won't 'miss out on your dream home'
• they get committed buyers who won't mess them around
• you might also be able to buy fixtures/furnishings at a decent price if they suit this house and your taste but not their new ones
• for them: no need to spruce up for photos, no need to vacate for viewing & keep place looking like a show hoe which is a big hassle

Cons

• they will think their house is worth more than you do .... if you get an average of valuations, it does not actually mean house will sell for that

eg my last property was valued at 425-440, but I actually only got an offer at 400 so sold at that

• my family has gone for average of valuations, but sibling buying is normally a tough negotiator and would not have offered asking price on a property on open market

-> I'd see that as main sticking point

• are you likely to fall out if the house needs repairs v soon after you move in (eg boiler goes or something like that?)
• timing: they might not work on your timeline/hang about/leave stuff for 'later' ... but that depends on them!

I'd say it depends on your relationship in general, & whether they see it as an advantage to sell to you vs trying luck on open market but paying a fee

For me, buying a house that I know all the history of seems a good option

Apparently something like 10% of properties are sold privately
I just sold my flat privately (to friends of a neighbour) and it worked out really well for me - saved me £5k in fees, I gave our 'fixer' £200 gift token as a thank you, & me and buyers were able to progress the sale smoothly and without a lot of stress