How to sell a house to a friend: 11 do and nonts

Do: Plan the buyer’s house inspection and evaluation

Most buyers choose to inspect the home before closing. And, if your friend uses a mortgage to buy a home, the lender will need to evaluate to determine the amount of funds they are willing to provide.

Even if your friend wants to give up on the checkup, it’s better to do the tough things and stick with it politely. It is very important for inspectors to assess any major issues or safety hazards for your home. A thorough assessment allows both parties to be convinced that there are no hidden issues or agendas to move forward.

Selling your home to a friend so far has prevented you from getting the preparations involved in the show. But now, you should take some time to clean the yard, retouch the paint and deep inside to prepare for your home assessment.

These simple efforts can help the appraiser show that you have taken good care of the home. Clearing the chaos allows the appraiser to easily access the required portion of the house to form a view of value.

Don’t: Receive special treatment during inspection negotiations

Even if you and your friends have agreed to the price, a house inspection opens the door to further negotiations.

It is not the time to offer favors or seek special treatment from buyers. When negotiating, consider each request as if there were anonymous buyers and hope they do so.

Like any buyer, they can ask you to fix any issues with water damage, structural problems, old or damaged roof, electrical or plumbing problems, HVAC system problems or essentially poses a safety risk.

As a seller, you do not need to provide any repairs, although issues such as those listed above may affect the buyer’s ability to obtain a loan. More importantly, you must disclose material defects in your home as required by your state law. When resolving repairs, choose to resolve large stuff, but reject any requests to fix cosmetic defects or small projects under $100.

“It’s important to know whether you’re legally offering it to buyers, whether they’re your friends or not,” Kaminsky said. “You want to protect yourself as a seller and you don’t want to disrupt their friendship.”

Do: Get everything in writing

Do you agree to leave the washer and dryer for the buyer, but plan to bring the stove to the stove because it’s a $5,000 Six Burner Viking Mountains? Have you brought your pool equipment to your new home?

Do you agree to offer a $1,000 price discount to fix the driveway, but you are not going to fix it before you leave?

Have you asked your friend to do a two-day extension after closing so you have extra time to move out?

There is nothing verbal agreement. Make sure to record everything in the contract, even minor details.

Don’t: Sweat about having to exchange financial details; it will remain private

When your friends update you with a mortgage pre-approval process, you may be worried about seeing too much personal financial information about them.

But, Ruth Wordman, the best-selling agent in Colorado Springs, says there is no need to worry about sensitive financial information among friends. This process is no different from selling your home to someone you don’t know.

“The seller can’t see the full financial situation of the buyer except for the pre-approved letter,” Wordelman said. “All you see is the final figure charged to them by the loan.”

By consulting a professional, you will ensure that you and your friends exchange minimal financial information, strictly involving the business.