It sounds like it should make things easier -- selling your home to a friend or family member should be a breeze for both parties -- but in reality, a home sale can disrupt your relationship if you don't go about it the right way. With the exception of parent to child transfers (and even some of those have issues) real estate transactions with family can go horribly wrong. Thankfully, there are ways to prevent strife and ensure that both parties get what they need from the process and that the relationship stays intact or even improves. Here's what to know when you sell your home to a friend or family member.
For Sale by Owner transactions are already tricky, but if you try to navigate not only the purchase price, conditions and transfer of ownership on your own, you could end up in a family feud that lasts long after the sale is done. Working with an agent ensures you have an objective third party and that everything runs as smoothly as possible. While they won't be your referee or babysitter, these skilled negotiators can make sure everyone walks away happy, with the relationship intact.
Use fair market value to determine the houses selling price, and be willing to make concessions. When you have an objective agent help determine the right price, you can be sure it is fair to both parties and that everyone's needs are met. Simply trying to work it out on your own can result in sale that leads to resentment and trouble later, if the home ends up being worth less (or more) than you expected. A professional appraisal done by someone who is a stranger to all involved can help set the right price.
With an eye for home conditions and the ability to detect even minor issues, this valuable team member is even more important during a friendly real estate transaction. You won't have to rely on your own knowledge or on your family member to let you know what needs work. Your inspection report will reveal everything you should know to strike the right bargain -- and let you know what you are getting into. Going into the transaction fully informed prevents unhappy, relationship-damaging discoveries later.
Of all the ideas above, insulating yourself by working with an agent will help you the most. This ensures that any conflict can be absorbed by a third party and that questions can be answered objectively. Whether you both use the same agent or you each have your own, that objectivity can go a long way towards ensuring a successful transaction that delights both sides of the table. Get in touch today to discover how easy selling your home to someone you already know can be and for help navigating this sometimes tricky process.
Rebuilding the Economy One Home Sale at a Time
Gary has been in the Real Estate Business since 2005 and can be considered a seasoned Realtor. He has seen the down periods in the economy and the upward trends that we are experiencing recently. Through it all there has always been one unchanging need in our society: families want to purchase homes. And when they are ready to buy they need assistance to search through today's over-saturation of information released by our industry. In order to find that perfect home it can become a journey that requires perseverance and patience. And a seasoned Realtor can be the guide to assure a successful transaction from start to finish.
