It isn't uncommon to be a bit wary of selling your home to a family member. Even when family isn't involved, there is a lot at stake and you'll want to ensure that the process is as smooth as possible. You also want to avoid unnecessary stress, which is particularly true when you're dealing with loved ones. If you're thinking about selling your property to a family member, here are four things that may be able to keep drama to a minimum:
1. Make Sure to Hire a Pro.
While you may think you can do everything on your own, and you probably can, you'll want to hire a real estate expert (such as one from All Connecticut Realty) to keep things professional. Despite what you may believe, a verbal agreement and a handshake with a loved one is not enough. A real estate professional will know the local real estate market and be able to help with the entire process of selling and purchasing to ensure there are no missteps along the way.
2. Extend a Fair Price.
If you're selling to a loved one, you may be inclined to offer your home for sale at a price that is not 100 percent beneficial to you. However, this is a big mistake. Don't take a loss just so that you can help out a loved one. Make sure that the price is fair for both of you by having an expert appraise your property.
3. Don't Overlook the Finances.
Financials are a big part of any real estate transaction. While you may feel a bit uncomfortable talking finances with a loved one, you will need to. You also shouldn't assume that they have the necessary credit to qualify for a home mortgage, as this won't always be the case. Instead, make sure that you treat your family member like any other interested buyer by insisting that they talk to a lender about getting pre-approved.
4. Don't Hide Any Issues.
Some people may think that since the family member has spent numerous weekends and summers at their house that they know the ins and outs of the property. However, this isn't true. They may not be aware of a plumbing issue that you have or a cracked foundation. So, make sure that you are upfront about any potential issues to avoid hurt feelings.
Remember, selling your home is a big deal, but when you have loved ones who are interested in buying it from you, it is crucial that you don't jump head first into the transaction. Make sure to exercise your due diligence to ensure that you and your family member gets the best possible deal.