Selling a home between family members can be an easy process, but it can also be a more complicated real estate transaction. That’s why it makes sense to bring in the professionals and use these tips to make your sale to your family member as smooth (and drama free) as possible.
Open the lines of communication with EVERYONE involved.
When family is involved, there are more parties involved in the transaction than just the buyer and seller. For example, if parents are selling the home to a child, other siblings of that child may also be interested in the transaction. While the family does not need to disclose the actual numbers (that choice is up to the family), open and clear communication is the key to everyone in the family being onboard with the transaction—both now and in the future.
Even though the transaction is between family members, proper documentation is the key to a drama-free and legal transaction. A verbal agreement is not enough; instead, hire an experienced lawyer to make sure the documentation is legal and complete so there are no hard feelings during or after the process. Contacting a real estate lawyer can also ensure that all the paperwork is in order so there are no legal problems in the future—all without the cost of a real estate agent’s commission.
Cover all your bases.
Whenever you go through a major transaction like selling a property, make sure you contact all the professionals to make sure all the proverbial bases are covered. Contact financial professionals, an experienced lawyer, an appraiser, tax professional, and a title company to ensure that you are aware of all the transaction details, both during the process and for the future.