Sell My House Fast Washington, Cash For Houses Washington, We Buy Houses Washington
In Washington State, some homeowners choose to sell their property for less than its fair market value. This can happen for a number of reasons—maybe you’re selling to a family member, facing financial hardship, or just want a fast sale with minimal hassle.
But selling your home below market value isn’t just a simple discount. There are important legal and tax implications to consider—especially if you’re planning to sell to someone you know, gift equity, or accept a significantly lower cash offer.
At REI Branded Home Buyer, we regularly help sellers throughout Spokane, Seattle, and beyond navigate these decisions. Let’s break down what it means to sell below market value, the legal considerations involved, and some smarter ways to reach your goals.
Why Do Homeowners Sell Below Market Value?
Here are a few of the most common scenarios:
- Selling to a family member or friend
- Avoiding foreclosure or bankruptcy
- Needing a fast sale with no repairs
- Estate sales where time is limited
- Tired landlords offloading distressed rentals
- Major property issues (foundation, mold, title problems)
While it may be the best path for your situation, selling under value requires extra caution.
Legal Considerations When Selling Below Market Value in Washington
1. Washington State Real Estate Disclosure Requirements
Even if you’re selling to someone you know—like a child, sibling, or friend—you’re still legally required to provide a Seller Disclosure Statement (Form 17), unless the buyer waives it.
This disclosure includes:
- Known defects in the home
- Utility and system details
- Environmental hazards
- HOA information, if applicable
Failure to disclose could lead to legal liability, even years after the sale.
2. Fair Housing Laws and Discrimination
If you’re selling at a reduced price but excluding certain groups or people, you could face legal consequences under the Fair Housing Act. Make sure your sales process does not imply discrimination based on race, religion, family status, disability, or other protected classes.
3. Potential Gift Tax Implications
Selling significantly below market value (typically more than $17,000 below FMV per person per year, per 2025 IRS rules) may trigger gift tax obligations.
Example:
If your home is worth $400,000 and you sell it to your child for $200,000, the IRS considers that a $200,000 gift. You won’t owe immediate tax, but it will count against your lifetime gift tax exemption.
Always consult a CPA before selling at a large discount to friends or family.
4. Title and Liens Must Be Cleared
Even if you’re giving someone a great deal, you can’t transfer ownership until:
- All liens are cleared (mortgage, taxes, judgments, HOA)
- The title is clean
- You sign a legally binding purchase and sale agreement
Selling Below Market Value to a Cash Buyer: What to Know
Some sellers in Spokane or Tacoma choose to sell “as is” to cash buyers for less than FMV to avoid:
- Costly repairs
- Realtor fees
- Showings and staging
- Long market timelines
- Uncertainty and failed closings
While you’ll get less than retail, a reputable cash buyer can offer you speed, certainty, and relief from stressful property situations.
REI Branded Home Buyer has helped many Washington homeowners in tough spots. We pay cash, close quickly, and always operate with transparency.
What Are the Tax Consequences of Selling Below Market Value?
1. Capital Gains Tax Still Applies
When you sell a home, even at a loss, the IRS may assess capital gains based on your original basis (purchase price + improvements).
If the sale price is lower than your basis, you generally don’t owe tax, but you can’t deduct the loss on a personal residence.
2. Gift Tax Reporting May Be Required
As noted earlier, large discounts to relatives can trigger gift tax filings—even if no money changes hands beyond the agreed sale price.
You may need to file IRS Form 709 to disclose the gift.
3. Medicaid Clawback or Penalty Risk
If you plan to apply for Medicaid or other income-based benefits soon after selling below value, the state may view the transaction as an improper asset transfer—resulting in penalties or delays in benefits.
How to Sell Below Market Value Without Risking Legal Trouble
Here are a few tips if you’re committed to a below-market sale:
- ✅ Get a professional market valuation or appraisal
- ✅ Work with a real estate attorney to draft your agreement
- ✅ Clearly document the reason for the discount
- ✅ Disclose all known defects in writing
- ✅ Consider a cash buyer if you’re avoiding time and expenses
If your main concern is selling quickly, a lower price doesn’t always mean fewer complications. Partnering with an experienced, licensed buyer ensures your sale stays compliant with Washington laws.
Easy Alternatives to Selling Below Market Value
Sometimes, sellers think they need to offer a huge discount just to get their property sold. In reality, there are better strategies depending on your goal.
💡 Instead of underpricing, consider:
- Selling as-is to a professional buyer
- Offering seller financing to attract more buyers
- Allowing a lease-to-own structure
- Getting a pre-listing inspection and being transparent
- Exploring cash-for-keys with tenants to improve property value
At REI Branded Home Buyer, we provide easy home buyer solutions with none of the traditional delays. We’ll buy your house in its current condition, pay cash, and close on your timeline—without requiring a discount for friends or family.
FAQ: Selling a Home Below Market Value in Washington
Q: Is it legal to sell my house below market value in Washington?
A: Yes, but you must still follow disclosure laws, resolve title issues, and possibly report the sale as a gift to the IRS if it’s deeply discounted.
Q: Will I owe taxes if I sell below value?
A: Not on the sale itself, but the IRS may treat the price difference as a gift if sold to a relative. Capital gains may still apply depending on your cost basis.
Q: Can I sell my home for $1 to a family member?
A: Technically yes, but this creates major tax and legal complications. It’s usually smarter to sell closer to FMV and gift cash separately if desired.
Q: Do I still need a real estate contract if I’m selling to someone I know?
A: Absolutely. Every real estate sale in Washington requires a signed purchase and sale agreement, whether it’s $500,000 or $5.
Q: How can I sell fast without a steep discount?
A: Sell directly to a cash buyer like REI Branded Home Buyer. We buy homes throughout Washington—no agents, no commissions, and no repairs required.
Need to Sell Quickly and Easily? We Can Help
If you’re considering selling your house below market value to get out fast, there’s a better option.
At REI Branded Home Buyer, we make selling simple and legal. No matter the condition of your home, we can provide a cash offer and close in as little as 7 days—without hidden fees or surprises.
📞 Call us today at 509-769-3439 or visit www.reibrandedhomebuyer.com to get started.
Sell Your Washington House Fast Today
About REI Branded Home Buyer
Real People. Real Stories. Real Solutions. We’re George and TJ — two regular guys who teamed up to create REI Branded Home Buyer, a local company with one simple mission: to help people sell their homes without stress, games, or pressure. We actually met at a local real estate meetup. A mutual friend randomly shouted, “Hey George, do you want to be this guy’s mentor?” George laughed and said, “Just give him my cell!” A coffee meeting later, and the rest is history. We've been working together ever since. Our passion for helping homeowners comes from personal experience. George was once homeless, so he deeply understands what it’s like to face housing uncertainty. TJ’s family went through a crisis and had to sell their home fast — with the help of a cash homebuyer. Those experiences shaped who we are and inspired us to create a company that treats people the way we wish we’d been treated. Let’s be real: the real estate world is full of shady companies, pushy salespeople, and sleazy homebuyers who care more about profit than people. We started REI Branded Home Buyer because we believe it should be the other way around — people first, profit second. We’re proud to call Spokane home. Our wives, Jenny and Michelle, love the slower pace of life here and all the outdoor beauty Washington has to offer. George and Jenny have two amazing daughters and two dogs — they love to travel and recently visited Japan to see their daughter abroad. TJ and Michelle are outdoor lovers through and through — backpacking, hiking, hunting, fishing, even rock climbing. Michelle’s become quite the mountaineer! If you’re thinking about selling a house — no matter the reason — we’d love to hear your story and see how we can help.