How to buy a family member’s house: the benefits and risks

7. Research the home-buying process

If you forgo a real estate agent, you forgo their legal knowledge and assistance. This means you will have to understand what it’s like to purchase a property for sale by the owner. You must also learn all the steps involved in the home-buying process.

8. Get an inspection

Finally, you should get an inspection, even if you know the home well and your parents do not know of any issues. It will be worth your while—if only for peace of mind—to have a professional assess what may not be visible to you.

Mold is a good example of something unseen that would be uncovered by an inspection. Getting the home inspected is a good way to avoid any unpleasant surprises.

The short answer is yes, you can buy your parents’ house for $1. However, the significance of that $1 is primarily symbolic. Whether it is the best decision for you and your family financially is a different matter. Before agreeing to buy your parents’ house for $1, you should consult with an attorney, a real estate agent, or an accountant.

Your parents can simply give you the house outright. Doing so carries the same ownership and tax implications. And in either case, your parents are making a gift. While some may think selling a home for $1 is binding, whether you sell for $1 or give as a complete gift, both are valid transfers.