When you are next door neighbors or workmates, it’s only natural that your friends may want to buy your house. After all, they may have visited it many times, and realize how comfortable it is.
So while it’s a tempting option, even if your friend doesn’t expect too big a discount, proceed with caution.
Where money comes in, friendships are often strained. And it’s possible as a friend that your mate may expect courtesies that you wouldn’t expect from other people.
How to Sell a House in Charlotte to Someone you Know
Let’s say you have a work friend that you’ve known for five years. You even have a few beers together or belong to the same bowling league. Your friend makes what he believes is a reasonable friend offer to help you get out from under your house.
In a case like this, not only will you be liable to sell your house at a discount, but your friend may believe you have a continued obligation to warranty the house long after you’ve sold it. For example, let’s say your friend is interested in the house and it even goes through the normal inspection process. But what happens if 8 months down the line the furnace breaks down and needs to be replaced (after all it could be a 20 or 30-year old furnace and they don’t last forever.)
Don’t be surprised if your friend puts your relationship to a test and expects you to pay half or even all of a new furnace. After all, your friends right? By selling your house in Charlotte to another buyer who you personally did not know, chances are after 8 months or a year of new ownership, you wouldn’t offer this to a strange buyer. There are no expectations there! You can be clear and upfront that your obligation ends after the house is sold.
Get professionals involved
The first piece of advice to avoid conflicts is to get professionals involved. This means at a minimum an attorney to ensure everything is spelled out crystal clear, as well as possibly a home buyer in Charlotte. Since your friend undoubtedly will want a discount, agree to split the real estate commission and be done with it. Avoid giving your friend too big of a deal because the IRS could technically say this is a tax gift, and you might wind up paying the bill.
Have your friend get preapproved
Before too much time is spent negotiating things, you’ll want to know your friend can really afford the house. If your friend expresses an interest in buying the house in North Carolina, suggest they get pre-approved by a bank or credit union and then contact someone in your market that is experienced. Consider finding a cash home buyer in Charlotte that is accustomed to buying plenty of properties in the area.
Get everything in writing
The reason you want to have an attorney involved is that many friendship sales turn into fights along the way. By having an attorney straighten things out, you avoid many of these post-sale squabbles. No, the boat and the riding lawnmower were not part of the sale.
After reading this you may just decide that selling a house in Charlotte to a friend is not a good idea. Not to mention, friends can be very valuable, and mixing friendship and money is not a great partnership. There are plenty of home buyers out there. It doesn’t have to be your neighbor of 20 years.
If you have thought that I need to sell my house fast in Charlotte, contact us for more information.