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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.
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.
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.
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.
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.
Selling a house should be quick and easy. Yet issues may arise that make it tough to enjoy a fast, profitable house selling experience.
Common problems that come up during the home selling journey include:
1. Lack of Curb Appeal
Dedicate time and resources to bolster your residence's curb appeal – you'll be glad you did. Remember, your residence only gets one chance to make a positive first impression on homebuyers. If your house impresses buyers when they see it for the first time, buyers may continue to pursue your home and submit requests to view your residence in-person.
To improve your house's curb appeal, you should mow the lawn, trim the hedges and perform various home exterior upgrades. Take an objective view of your home's exterior to identify any problems that may make buyers shy away from your residence. Then, you can correct these issues.
2. Initial Asking Price Is Too High
If your home's initial asking price fails to account for your house's condition and the current state of the real estate market, you may struggle to sell your residence. In fact, in this scenario, it may be many weeks or months before you receive an offer to purchase your residence.
Before you list your house, you may want to conduct a property appraisal. This enables you to receive a home valuation from a property expert. With this valuation in hand, you can set a competitive initial asking price for your house, thereby increasing the likelihood of a quick home sale.
3. Buyer's Market in Place
In a buyer's market, there may be an abundance of available houses and a shortage of property buyers. Thus, if a home seller is not careful, this individual may struggle to achieve the best-possible results.
Analyze the real estate market closely, and you can differentiate a buyer's market from a seller's one. If you find that homes linger on the real estate market for many weeks or months before they sell, you likely are preparing to enter a buyer's market. As a result, you'll need to go above and beyond the call of duty to differentiate your house from the competition.
When it comes to selling a house in a buyer's market, it may be beneficial to hire a real estate agent. This housing market professional can help you craft a plan that ensures you can seamlessly navigate the home selling journey, regardless of the current real estate market's conditions.
A real estate agent first will meet with you and learn about your home selling goals. He or she next will develop a personalized home selling strategy and promote your residence to prospective buyers. And if you receive an offer to purchase your house, a real estate agent will help you review this proposal and determine the best course of action.
Take the guesswork out of the home selling journey – collaborate with a real estate agent, and you can get plenty of help as you get ready to sell your residence.
If you want to sell a house in a buyer's market, it pays to allocate the necessary time and resources to differentiate your home listing from others. Because if you create an informative and engaging home listing, you should have no trouble stirring up interest in your residence, even in a buyer's market.
Now, let's take a look at three tips to help you differentiate your home listing in a buyer's market.
1. Consider the Buyer's Perspective
In a buyer's market, a homebuyer has no shortage of high-quality residences at his or her disposal. As such, you'll want to consider how a buyer may approach your residence and tailor your house listing accordingly.
Think about what led you to purchase your residence in the first place. Then, you can create a home listing that highlights your house's distinct features.
For example, if your home boasts a large, luxurious in-ground swimming pool, you may want to include details about it in your home listing. Or, if your house is located just minutes from many popular attractions, you may want to incorporate this information into your house listing.
2. Be Honest with Buyers
Your goal as a home seller is to craft a house listing that showcases your residence's features. At the same time, you'll want to be honest with buyers to help them make an informed decision about whether to pursue your home.
A detailed home listing that includes accurate information about your house is paramount. Because if your listing is misleading or inaccurate, it may cause problems down the line.
Remember, any problems with a house likely will be identified during a home inspection, a key step in the homebuying process. And if you try to hide these issues, it may slow down or stop a home sale from happening. Conversely, if you are honest with buyers from the beginning, you can make it easy for them to determine whether your residence is the right choice.
3. Consult with a Real Estate Agent
A buyer's market can be tough to navigate, regardless of where you live. Luckily, real estate agents are available to assist sellers in any buyer's market, at any time.
With a real estate agent at your side, you can craft a home listing that hits the mark with the right groups of homebuyers. In fact, a real estate agent will guide you along the home selling journey and help you identify and address any hurdles along the way.
Typically, a real estate agent will learn about your home selling goals. This housing market professional then can help you put together an in-depth home listing that highlights the key features of your house. Perhaps best of all, a real estate agent will share this home listing with dozens of buyers, thereby increasing the likelihood of a quick, profitable home sale.
Ready to list your house in a buyer's market? Use the aforementioned tips, and you can create a top-notch home listing that helps your residence stand out from the competition.
