You have decided you want to sell your home. What comes next? You must find a home buyer that will purchase your property. The buyer turns out to be your neighbor. You know this person and they are interested in your home. They do not have to move far which is a good thing. These are some things to keep in mind when you are selling a house to your neighbor.
Professionals and Paperwork
Even if you are selling your home to a friend you should still use legal services to write up any agreements and complete all of the sales paperwork. Your real estate agent should still fill out all of the closing paperwork and it should go before a lawyer. The purchase agreement will allow the buyer to know more about the home and it will also contain information such as the asking price and the closing date. This is important for a legal sale.
Even if your friend is interested in your home to complete the sale they are going to need to get a mortgage. To see if you should hold the home for them ask the friend to get pre-approved. This will tell your friend if they can afford the home and if they are eligible for a mortgage. If they go through all the inspection steps or if you hold off on putting your home on the market and they cannot get approved for the mortgage a lot of time has been wasted.
Do Not Reduce the Price
Since you are selling the home to a friend they may think that you are going to reduce the price to be nice. You do not have to do this. You can go based on the estimate of your home and what your agent thinks that you can sell your home for. If your friend wants to negotiate on price have them deal with your agent. You may be willing to reduce the price if any repairs need to be made but you should not reduce your price just because you are neighbors.
You should have a home inspection to see if there are any issues with your home. If there is damage to the home or if something needs to be repaired this can affect the price. You should not be forced to make the repairs because your friend is interested in the home. If you want to make the repairs to increase the value that is one thing. If you want to be flexible on the price for the repairs then you can do that too. Treat your friend as any other buyer.
When you are selling your home to a neighbor you still need to follow all the legal guidelines and have all of the documents filled out correctly. You are going to want to make sure the process is done correctly so you do not have any holdups at closing. If you have thought that I need to sell my house fast in Roanoke, consider talking to your neighbors.