s/o Would You Sell Your House to a Friend?

[anonomom]

We're getting ready to put our house on the market, and one of my kids' friend's mom's just reached out and asked if we'd consider selling it to her family rather than listing it.

If a random stranger knocked on our door and asked the same question, we'd be giddy, but the idea of selling the house to a friend gives me the heebie-jeebies. They're a lovely family and I would feel awful if things went bad, or if we couldn't come to agreement on the price, or if they ended up buying the house and then not liking it. But maybe I'm just being overly nervous?

Would it make you anxious to sell your house to a friend? How would you go about protecting yourself, and them, and your friendship?

[hillview]

Wow well I think it is great. I think if you can get your asking price then call it good. It sounds like you are friendly but not BFFs? Our neighbors just did this and everyone was happy. Figure out your listing price minus broker fees and let them know.

[Octobermommy]

We may be in this situation as well. I dont worry about the price part bc that’s business to me but I have worried about what if in two months the air conditioner goes out do you think they would call you?

Do you already have your asking price? I would let them make an offer & go from there. If you can keep a business mind set & think they can as well then I would do it.

[MSWR0319]

Someone we knew bought our house and it made me a bit nervous, but it's really no different than someone else buying it I guess. We didn't know them well, but we had tons of mutual friends and see each other regularly at school functions. They contacted us a few times with questions, but nothing bad has ever happened. They chose not to do an inspection either so they can't really hold us accountable for anything.

[firstbaby]

We have that happen quite a bit in our neighborhood - someone will post on the community FB that they are getting ready to list their house and many times someone they know or a friend of a friend is interested in buying. If I knew I was putting the house for sale and not hiding anything I would celebrate selling to someone I knew.

[alootikki]

I would not want to do that, and DH would probably say no way! He firmly believes that you should never mix friendship and money.

In our town/real estate market, houses go for well over asking, so there's not really a benefit to doing FSBO (the prospect of multiple offers makes buyers ramp up their offer price, and the money you gain from that process outweighs the commission you pay to the realtor). Is this friend expecting to get a "bargain" since there is no real estate commission involved?

What happens when issues come up during inspection? It may be awkward to negotiate with a friend. Buyers are getting pickier with inspection issues around here, and you have to be able to say yes on certain things and no on others.

I wouldn't say "don't do it at all", but proceed with extreme caution!

[c&j04]

We bought from an acquaintance and it looks like we'll be selling to a friend. They're familiar with the house and its history. We can give them more details than a different seller could.

I still feel a bit hesitant and DH thinks I'm crazy. I'd prefer to sell it to a stranger. But this is easier! It's also very common in this area.

[hbridge]

No... I would be very uncomfortable. I have had too many "friendships" fall apart over petty things that I am always hesitant to "get involved". I can see this being an issue even if both sides are perfectly friendly. This would be too close for my comfort zone.

If it were an acquaintance and I was moving far away, then maybe. However, if I was staying in the area (within a 2 hour drive) and it was someone I would see often, I would be VERY uncomfortable with this arrangement!

I say, list the house as you normally would. If the friends are truly interested, go through the "normal channels".

I have never seen a situation of friendship and business mixing well.

[mikala]

I'd hesitate but I could be OK with it if I could think of it as a business transaction and if I had a good idea of fair market value and the amount I'd reasonably receive for the house. I would not lower the price for friends beyond the percentage I'd normally pay an agent.

I would make sure there was an inspection and would fully disclose the age of major appliances, past maintenance work, etc so I had a clear conscience if the roof started leaking or the furnace died right after I sold it.

[bisous]

I would do it without hesitation. That kind of thing happens all the time here. I don’t think the friends are looking for a deal—my guess is they like the house or the neighborhood and think it would be win win. I don’t really see this as a mixing of friends and business though... it’s just a straight forward sale.

[bisous]

I'd hesitate but I could be OK with it if I could think of it as a business transaction and if I had a good idea of fair market value and the amount I'd reasonably receive for the house. I would not lower the price for friends beyond the percentage I'd normally pay an agent.

I would make sure there was an inspection and would fully disclose the age of major appliances, past maintenance work, etc so I had a clear conscience if the roof started leaking or the furnace died right after I sold it.

And yes, I’d do this!

[MSWR0319]

I was thinking more about this. The same buyer could come and make an offer if it was listed, so it's actually saving you commission fees!

[mikala]

I was thinking more about this. The same buyer could come and make an offer if it was listed, so it's actually saving you commission fees!But on the flip side you might receive higher offers during an actual listing. I don't know if the offers are likely to be high enough to offset the cost of commissions and the hassle of staging, showings, etc. but it's a factor to consider.

[bcafe]

We are sort of in this type of position now. DH "works" with a gentleman (in the same building, not the same department), and we are purchasing his home without realtors. It has been extremely civil and they have been accommodating to fixing issues after the inspection (we have a real estate attorney). We are very comfortable with the sale and trust that they have kept and maintained the home immaculately. It saved them them the realtor commission, so we were able to negotiate a better deal. Win, win!

[mackmama]

We live in a tiny HCOL town so that happens all the time here. We all know each other. I wouldn’t worry about it. Just disclose everything.

[jawilli4]

Having just sold a house, the question that comes to my mind is getting the right price for your house. Our Realtor was invaluable running comps and knowing the current market. Do you feel comfortable figuring out the right price for it?
The other thought I had it that there is a benefit in avoiding having to keep the house clean all of the time for possible showings.

[megs4413]

NO! we did it. We were the buyers. We got screwed over. We're not friends anymore.