Should I Sell My Property To My Friend?
Have You Heard The Saying About Not Mixing Business And Pleasure?
At Alan Cooper we sometimes meet sellers who have considered selling their home privately to someone they know. Yet, while this may appear to be a simple way of saving money and time, it isn’t without its potential downfalls.
Property Sales = Business Deals
You’ve probably heard the saying about not mixing business and pleasure, and it’s important to remember at the end of the day, selling your property is just another business deal. Entering into a business deal with a friend can present a host of possible issues.
For a start, a large amount of money will be involved, and in such cases, separating your friendship from business sense can be difficult. For example, what would you think and feel if the survey revealed a problem that you knew nothing about that prompted your friend to request a price reduction? What would you do if they said they couldn’t raise enough money and could they purchase your property at a lower price?
Dealing With Third Parties
You should bear in mind that any third party involved with the process won't be familiar with your friend and may not want to take any risks. Estate agents must look after the interests of their sellers, and so they ensure the buyer is serious about the purchase and has sufficient funds as well as a strong property chain in order to see through the deal.
Private sales can make chains more risky and complicated than usual. Frequently, private buyers don’t engage with estate agents in the normal way, and that makes it extremely hard to carry out due diligence processes. Without such processes being properly undertaken, the chain is at risk of collapse.
Undertaking Work Yourself After Agreeing A Sale
There is a common misconception that after you’ve agreed on the sale of your home to your friend the job is complete. However, a considerable amount of work still needs to be completed. If you’re selling privately, you’re responsible for undertaking all of this yourself. That can be time-consuming, stressful, and overwhelming.
Most property sales are part of a chain, and that means multiple parties are involved in the process. As you can imagine, things can become very complicated as a result. Usually, the estate agent deals with everything, ensuring everybody involved in the chain is progressing at the correct pace.
They also speak with surveyors and solicitors and make sure money laundering checks have been properly handled within the correct timeframe. Dealing with all of these elements on your own isn’t easy and can give rise to some significant and costly mistakes.
If you’re ready to sell your property without having to deal with the complications and stress yourself, or if you don’t want to risk losing a friendship over a property sale, give our team a call now on 02476 349336 or drop us an email at sales@alan-cooper.co.uk to find out how we can help.
