Selling a home to a family member or friend
You may have a specific buyer in mind when you are ready to sell their property. Whether that buyer is a family member, friend or co-worker, there are a few things to think about before you go ahead with the sale.
Realtor® Caitlin Radzanowski has a few suggestions when it comes to navigating personal relationships and home sales.
Are you protecting your interests?
“If you’re selling to a family member or friend, it’s important to get advice to make sure everyone’s interests are being protected. Whether you want to give the buyer a small discount or a really great deal, you have to have a strong understanding of the current real estate market in your area to know what your house is worth.”
You might think you already have a clear idea of your house value, but Caitlin says sellers’ perceptions of the value of their homes are often shaped by other factors that don’t have a bearing on the actual market value, such as the time, effort and love they’ve poured into their homes. Some people decide on a price based on what their neighbour’s home recently sold for without really knowing how that house compares to their own.
That’s where a Realtor® comes in. A Realtor® can provide a comparative market analysis of similar homes in the area to come up with a much more accurate idea of what the home is worth. They can also walk buyers and sellers through the entire transaction to make sure that the sale is completed in a legal manner that protects both parties.
Caitlin recommends sellers make sure that the friend or family member is pre-qualified for a mortgage. You don’t want to go through the necessary steps only to find they can’t get the financing to buy your home.
Are you protecting their interests?
“If you are thinking of selling a property to a family member or friend, it might be tempting to simplify the process and skip some of the steps, but you don’t want to encounter a serious problem that could in turn have a negative effect on your relationship. Go through all the steps that are designed to protect both parties.”
Don’t skip the home inspection. You might have lived in the home for a long time and think you know everything there is to know about it, but homeowners are typically unaware of some of the problems that home inspectors discover. You don’t want a situation to arise where the new homeowner, your friend or relative, has to deal with a serious problem when they move in.
If you’re getting ready to sell in Prince George, BC or surrounding areas, talk to Caitlin or one of our other expert residential Realtors® at Team Powerhouse Realty.