Selling your home to a friend or family member might sound easy. Not having to put your home on the market… Not having to find a qualified buyer… But, if you choose to go this direction, there are a number of things you should take into consideration.
- Get Professional Help. Both sides should be represented when it comes to drafting and reviewing all necessary documents.
- Pricing. When it comes to pricing, how certain are you that you’ll be getting the best market price for your home? Keep in mind, there can be tax implications when selling a home. This is especially true when a home is sold to a family member below market value. The IRS could question whether the sale was a gift to the relative, and any discount in price could be subject to gift tax.
- Try to avoid seller financing or the buyer assuming your mortgage unless you are released from future liability.
- And, obviously, all agreements should always be in writing.
Even a simple home sale can be a complicated transaction. Keep in mind that a REALTOR® can guide you through the process and help you avoid potential risks.
