Families are like fudge… mostly sweet with a few nuts.
When you’re posting buy my house on social media (and through effective home selling services like what zerocommission.com.au offers), family members will be one of the first to spot your listing. A relative might then consider your property a good investment.
Selling your home privately to a family member can sound like the ideal arrangement. And why not? You get to skip the niceties and get down to the gritty details of the deal! A relative who’s already familiar with your property for sale can be the best buyer.
It pays to curb your enthusiasm, though. Remember you’re conducting business, not a family dinner. It can be difficult to not see the other party as family. Fortunately there are ways to ensure the best deal for both sides. Keep the arrangement professional with these six tips when selling a home to family.
Tip #1: Your interests come first
This may seem like a sceptical way to start the list but the bottom line is you’re selling your house to a paying, interested buyer. Prepare your property and have it appraised. Invest in the necessary repairs. It’s disappointing to go through the motions and not see the deal through, especially with a family member involved.
You’ll fetch the best price for your house if it’s primed for the sale. In case your relative opts out of the Buy My House deal, proper planning will ensure you’re good and clear to consider other interested parties.
Tip #2: Consider legal assistance
You’re ecstatic a relative responded with keen interest to your Buy My House ad. Then you find yourself willing to cut the price, gift the property at a discount. While costs and arrangements are all under your discretion, it’s vital to have every snag covered, working up to the closing.
It’s likely there are legal conditions to meet. Paying for legal advice will save you from unforeseen events later on.
This is particularly necessary when you’re selling to a close family member, like your sibling or parent. Regulations differ between states, and legal advice ensures you have the prerequisites covered.
Tip #3: Go for the best deal for both parties
You’ll be tempted to disregard the price on your Buy My House listing and seriously undercut for the sake of a family member. This urge seems more reasonable during the walkthrough and negotiations.
Chances are pretty high you’re selling your house privately for profit. Keep your game face on. If your buyer is quite familiar with the property, fend off bargaining attempts by pointing out your investments in renovations. Surely you didn’t go through this trouble just to sell the house at a loss.
Tip #4: Be shrewd with financial checks
Your relative may request for leeway in finances, with reassurance this will be smoothed out at the closing. Even though you’re selling to someone you know, every potential buyer must still be pre-approved for a loan before you commit.
Buyers must be pre-approved for mortgage before they can make an offer. Otherwise, any offer made is a bluff. Now isn’t the time to rely on someone’s verbal and informal promise. Verifying for eligibility should be your first recourse, regardless of the person you’re dealing with.
Tip #5: Have a disinterested party host the walkthrough
Your buyer is so personally acquainted to you that judgment may be clouded in the process. Consider entrusting the crucial details of the deal to a trusted, disinterested party. It may be a friend or a hired professional, anyone who can ensure the deal is professional and straightforward.
At the very least, have someone join you during the walkthrough and negotiations. A disinterested party can point out flags or concerns beyond your peripheral judgment.
Tip #6: Due diligence: the lender should know you’re related to the buyer
This is essential for both parties, especially in the later stages of the sale. Lenders prefer parties who are upfront with the nature of the sale.
Plenty of housing authorities require applicants to establish identity of interested parties. Conventional mortgage arrangements also implement this from the get-go.
Buy My House, Fam!
Selling a house privately to a family member can be the ideal route. There are advantages to turning your keys over to someone familiar.
Wouldn’t it be nice if you’re still welcome to visit a home you’ve sold, break bread at the dinner table, and spend the holidays? If you conduct the sales process professionally, you won’t have to sever emotional ties with the property.
Want other tips to help you sell a house fast? Check out our other blog posts:
- Online agents versus commission-based real estate agents and how you can sell a house privately
- How to write real estate description that lures in interested buyers
- 5 mistakes private landlords should avoid
- How to take amazing photos of your home for sale with an iPhone
- Discover why our customers are very happy with our services