There’s a noticeable difference between selling your home to a stranger and selling your home to a family member. A difference that you might not quite recognize until you are in the process of doing so. It can be fun and exciting for the family, but also awkward and uncomfortable at times. Here are some great tips on smoothing out the process and making this transition a bit easier.
Tip #1: Hire a Professional Title Company
It’s always important to use a professional title company in real estate transactions and in this specific situation, they also act as a mutual third party between family members. The title company will help with important documents needed for the transaction and work alongside your Realtor towards closing to make sure both buyer and seller are happy.
Tip #2: Put It All in Writing
In normal sales with a stranger, this would probably be one of the first things to cross your mind when it comes to paperwork and agreements. However, when it comes to selling to a family member, many think that kinks can be worked out later on down the road, and that verbal negotiations and agreements are sufficient.
The mistake with this comes when you and your family member agree on them paying for a replacement or repair later down the road, and all of a sudden it’s a family birthday party and they’re telling you that you owe them money. If everything is spelled out clearly and concisely, this won’t happen. This includes furnishings, fixtures, and appliances included or not included in the sale. This prevents misunderstandings and unexpected events down the road. Putting everything in writing is also important to help your Realtor and title company put together the purchase agreement and title together correctly.
Tip #3: Get an Appraisal & Inspection
Similar to the whole, “have it in writing” ordeal, getting an appraisal and an inspection done is one of the top priorities for sellers working with buyers that they do not know. However, if it’s not required, it may completely slip the minds of someone selling to a family member.
It’s important to get an appraisal and an inspection because it informs both you, the seller, and your family member, the buyer, of just how much the home is worth and what parts of the home may need to be repaired or replaced. This keeps the buyer and seller on the same page and prevents unexpected surprises down the road.
Appraisals are also important because many mortgage lenders require one for financial reasons. This lets the lenders know what the market value of a home is, in order to get your buyer a loan to purchase the home if needed.
If you’re in Louisville or surrounding areas, The Elizabeth Monarch Group is the team of experienced Realtors that will help you through the entire process! Whether you’re buying or selling, The Elizabeth Monarch Group will be there from listing to closing and beyond! We provide buyers and sellers with professional service throughout the buying and selling process and help with things such as repairs, upkeep, lender and title company recommendation, and more with our Trusted Affiliates program. If you’re in the market to sell or buy a home, contact us today! Check out our website at www.theelizabethmonarchgroup.com!