We’ve all heard this piece of advice: don’t do business with your family members. Business interactions can be difficult, and tension levels often rise. However, sometimes you’ll have to do business with family, and that’s OK.
Many people end up selling their home to friends or family members, which can work well for both parties if done correctly.
If you’re selling your home to someone that you know, there are several things in keep mind to ensure that the process goes smoothly.
Find a Realtor
The first step to selling your home to a friend or a family member is to find a professional realtor. If the people buying your home from you are comfortable using one realtor, that’s great. However, each individual party can benefit from having their representation. Having two different agents can help make discussions about money, inspections, and move-in timelines less uncomfortable. Let the professionals handle all of those details to avoid personal confrontations.
Figure Out Finances
It might be tempting to lower your asking price for a friend or a family member but it’s also important to walk away from the transaction in good shape. Lowering your asking price just because you know the person purchasing the home can be a risky move. When you’re deciding on a listing price, seek the advice of your realtor and check out comparable homes on the market. Come up with a fair asking price, perhaps slightly reduced but only if you want to do so.
Even if you are selling your home to someone that knows you well, it is vital that you still have the home inspected prior to the sale. This will ensure that they are aware of any issues and understand what they are buying. If issues do come up later on, they can’t hold a grudge against you. Plus, an inspection gives you documentation that the family or friends purchasing knew all of the details up front.
Selling your home to family or friends can be difficult, contact Montana Land Homes to get started.