What is the best way to buy?

[Jayson T.]

Hi BiggerPockets friends,

I am about to become an agent and want to buy my moms house from her. What is the most beneficial way to cut costs? My wife and I want to buy it to live in with her grandmother and will be renovating it. Should I run the title through a title company and hire a lawyer only?

[Paul H.]

Hey Jayson, 

Becoming an agent will have no effect on this, just purchase it with a formal sales agreement between you and your mom. Will it be a cash purchase ? If you're using any kind of financing they'll probably require title insurance which costs more. But if it's simply cash right now, I know in PA and I assume other states.. you can have an attorney do a title certificate. Same title research process, just not adding insurance to it. Besides that, to do it correctly, you'll still have the deed recording fees, transfer tax fees, document prep fees, pro-rating taxes, etc. So they'll be closing fees, but should be minimal. Also, I wouldn't use both title company and lawyer. I know for myself here in PA I can go directly to my attorney and he handles the entire process. Or vice versa with a closing company.