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.
Don't Attempt to DIY your Home Sale
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.
Get Objective Opinions
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.
Hire an Inspector
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.
Work with an Agent for a Trouble Free Sale
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.
About the Author
Kyung Kim
Hi, I'm Kyung Kim. I immigrated from South Korea to the United States in 1968 when I was 7 years old. I have seen my mom struggle with the English language and work hard to raise her four kids by herself. Still to this day, I don't know how she pulled it off, but she bought her first home in 1979 for $70,000 and because of that decision, she was able to live without worrying about her financial future. I want that for everyone, to feel the pride of home ownership and to build their financial wealth using real estate as part of their financial portfolio. I feel so blessed to play a small role in helping others reach this goal.
I live in Beaverton with my husband, Richard. My mom, who lived with us for several years, passed away in our home in February 2022. Her first home purchase in 1979 made it possible for her to live to the very end, without worrying about her finances. As of August 2022 with a little downpayment assistance, our four children own their own homes. Being in real estate, I quickly realized that if they didn't buy now, they may be priced out of the market in the future. Whether that would have been the case, we will never know, but what we do know is that they are all realizing some good, healthy appreciation in their home values.
As passionate as I am about people owning their homes, I'm also passionate about giving back to our community. I support Compassion First, a non-profit organization that provides aftercare for sex trafficked girls in Indonesia. My husband and I also feel called to financially support social injustice organizations.
I'd love to assist you. Whether you're in the research phase at the beginning of your real estate search or you know exactly what you're looking for, you'll benefit from having a real estate professional by your side. I'd be honored to put my real estate experience to work for you.
