Why would someone sell their house to their parents 1.5 years ago and now have...

[chgteach]

...it on the market? I just found a 5 year old house on the market. After looking at some history of recent home sales, I found that the house had been sold 1.5 years ago, and the seller's and buyer's last names are the same. I know that the son sold the house to his parents 1.5 years ago, but he continued to live in it until he put the house on the market. Why might someone do this? Is it to keep creditors/construction loans off his back? Would it be to fudge the sale price of the home to make it look like it was worth more?

[karen g]

It could be any number of reasons.
Maybe he was going to be sued so he did not want any assests in his name.
Maybe son just got a new job in a different state and needs to move now and since he lives there he has to facilitate the sale.

Maybe the parents were elderly and could not have any assets prior to going to a nursing home ( medicaid rules).

Who knows
If you feel uncomfortable with this, look for another house
ifyou are worried about the purchase price, hire an apprasier to check it out for you

[amanda h]

He wouldn't "fudge" on the price of the home becuase if he sold it to his parents, he'd have to pay excise tax. And now since they have only owned if for a year and a half, if they sell at aprofit, the parents owe captial gains.

This was not a good move if it was done with profits in mind. My guess is he was in financial trouble and his parents helped him.