Is location still the top priority? Should you renovate your house to cater to your personal preferences or to boost its resale potential? Are entry-level homes still in demand? We’re all brimming with questions about the continuously evolving real estate market. In our “Ask an Agent” series, we’re teaming up with professionals from Better Homes and Gardens Real Estate to address your most pressing inquiries about buying and selling homes.
It might come as a shock to some, but a significant number of individuals purchase or sell homes to people they already know. Whether it’s a friend-to-friend transaction or a family “gift,” these types of property deals often come with their own set of complexities. One of the biggest hurdles can be preserving a strong and stable relationship during what can be a stressful process. Discover what real estate agents have to say about such purchases and sales before you dive in yourself.
For this edition of Ask an Agent, we had the pleasure of interviewing Kevin Clark from Better Homes & Gardens Real Estate Dream Partners to delve into the intricacies of buying or selling homes to friends or family.
Kevin Clark is a broker and the owner of Better Homes & Gardens Real Estate Dream Partners, situated in Janesville, Wisconsin.
When you’re the homeowner selling to someone you’re familiar with, particularly someone very close to you, your primary risk is that they might hold you accountable for unforeseen issues that arise post-sale. Should something go awry with the house immediately after the sale, the buyers might suspect that you were aware of the problem but still chose to sell it without revealing it. To avoid this, it’s crucial to establish trust and grace with your friend or family member. Lacking this foundation can lead to trouble in maintaining close relationships.
If I were a homeowner selling to someone I knew, I’d say, “I’m sharing everything I know. And if I had more information, I would inform you, but I want you to be aware that there’s a chance something might go wrong, possibly within the first year. I’m not sure what it is; if I were, I’d tell you.” This approach ensures that I can’t be blamed if my prediction is accurate, which I sincerely hope it won’t be.
A professional inspection would undoubtedly benefit both the seller and the buyer. A thorough inspection would also aid in navigating the legal aspects. To enhance protection, I believe home warranties can be particularly beneficial for this type of transaction, offering additional peace of mind. As a homeowner, you might consider covering the cost of a home warranty for the first year, then inform the seller that they’re welcome to continue renewing it independently afterward. This thoughtful gesture can provide reassurance in this unusual kind of sale.
This interview has been edited for brevity and clarity.
