Leave a Message

Thank you for your message. We will be in touch with you shortly.

Selling to famnnily members

Gabrielle Hazan June 19, 2024

Selling a home to a family member in San Diego can present a wonderful opportunity to keep a cherished property within the family while potentially streamlining the sales process. It’s a chance to pass on a piece of personal history and perhaps make homeownership more accessible for a loved one. Let's explore some essential tips to ensure your home sale to a relative is as rewarding as it is successful. I’ve outlined some ideas on how to make this process smooth and hassle free.

Think about a fair price

Determining a fair selling price is crucial to avoid any feelings of resentment or financial unfairness among family members. An independent appraiser can provide an objective valuation of the property, ensuring the price reflects current market conditions in San Diego. 

In the first quarter of 2024, the median home price in San Diego was approximately $825,000. Hiring a neutral professional provides transparency and avoids either party feeling like they got the short end of the stick. In addition a local specific appraisal is critical. 

Consult a Real Estate Professional

A professional will help navigate the paperwork, legal requirements, and perks and pitfalls of selling a home. This ensures all steps are handled legally and professionally, safeguarding both the seller's and buyer's interests. Feel free to reach out to me for help in navigating this unique selling process.

Understand Tax Implications

One example is if the home is sold at a significantly lower value than its market price, the IRS may consider the difference as a gift, potentially requiring the filing of a gift tax return. 

In California, the property tax implications under Proposition 19 should also be considered, especially if the property will be used as a primary residence by the buyer. Consulting a tax professional can help you understand all tax obligations and opportunities.

Consider Financing Options

Financing the purchase can be one of the trickier aspects of selling to a family member. Traditional mortgage lenders may have specific requirements for family transactions, or the buyer might prefer a private arrangement like a family loan. Discuss all available options, including the possibility of seller financing, where the seller acts as the lender, which can sometimes offer more flexible terms and rates.

In San Diego, where mortgage rates as of mid-2024 have averaged around 5.5% for a 30-year fixed-rate mortgage, exploring different financing options can make a significant financial difference.

It's essential to treat the transaction with the same level of seriousness as a sale to a non-family member. This means all agreements should be in writing, including any terms of a private loan or agreements on closing costs or home repairs.

California’s real estate laws require specific disclosures and documentation, including the Transfer Disclosure Statement (TDS) and the Natural Hazard Disclosure (NHD) report. Ensuring all legal requirements are met can prevent future disputes.

Consider the long-term implications of selling your home to a family member, especially how it might impact inheritance and estate planning. Discuss how this sale aligns with broader family goals. Thoughtful planning can help avoid future misunderstandings and preserve relationships for generations to come. Open dialogue benefits all involved, always. 

Selling a home to a family member can be a fulfilling experience, especially when you prioritize fairness, transparency, and legal integrity. If you have any questions or need personalized advice to navigate this unique selling process, don't hesitate to reach out. I’m here to assist you at every step, ensuring a smooth and positive experience for all involved.


  1. San Diego County Median Home Prices: [San Diego Association of Realtors](https://www.sdar.com)
  2. Mortgage Rate Trends: [Freddie Mac](https://www.freddiemac.com)
  3. California Real Estate Laws: [California Department of Real Estate](https://www.dre.ca.gov)

Stay Up to Date on The Latest Real Estate Trends

 Recent Blog Posts

Work With Us

We're excited to connect with you and help you achieve your real estate goals. Whether you have questions about buying, selling, or investing, or you simply want to learn more about our services, we're here to provide the information and guidance you need. Let's connect today!