Unspoken expectations make selling to friends more challenging than selling to strangers: the friendship bonus alone can quickly involve a lot of money. Dealing with problems that may arise after a sale can also quickly put a friendship to the test. TIP: A professional real estate agent can use their experience to help ensure a smooth sale to friends and acquaintances.
Sale with a friendship bonus
When you sell a property, it is often only a matter of time before neighbors, friends, relatives, or acquaintances get in touch and express their interest in buying. "Great, the sale will be quicker and easier than expected," you might think at first. However, very few sellers realize that there is potentially a lot of money at stake and that they may end up with unexpected problems. We explain how you should respond to the first offer from an "acquaintance."
At first glance, it seems like a good opportunity to sell your property to a friend, neighbor, or relative. After all, you've known each other for a long time and both sides seem to know what they're getting into. In our experience, it is precisely these types of sales between acquaintances where the seller often gets the short end of the stick. This is because the "special buyer" often expects special treatment—the famous friendship bonus. And that can be quite expensive, both in terms of money and relationships.
First great, then terrible?
Familiarity with friends or neighbors suggests a sense of security that many salespeople find reassuring. It is precisely this trust that often leads the "special buyer" in particular to dwell on questions and issues that unexpectedly delay the reliable agreement on the purchase or even cause it to fail in the end— Clarification of financing, examination of renovations, additional appointments with tradespeople and architects, sale/rental of their own property, absence due to vacations, moving plans, etc. – and take their time because everyone involved feels secure about the purchase agreement. After all, few sellers will (be able to) push the sale with a good friend as hard as they would with a stranger.
In addition, all other (neutral) interested parties must be put on hold or rejected during this phase – but what if they make you a better offer and buy the property more quickly? This is because an unknown prospective buyer is highly likely to put aside any non-essential requirements, as they do not have the certainty that the seller is waiting for them.
But it's not just a question of timing. How well prepared are you to negotiate several hundred thousand dollars, especially among friends? Are you really willing to sell your property below market value to accommodate your "special buyer" and preserve the friendship? And how do you decide without offending anyone if there are several interested parties among your friends?
Most owners realize that selling to friends, neighbors, and acquaintances is complicated at the latest when several offers come in. No one negotiates easily with friends and acquaintances and turns down neighbor A because neighbor B has made a better offer.
A handshake doesn't count – not even among friends!
What's more, a handshake deal between friends always involves risks when large sums of money are involved. As the seller, how can you obtain reliable proof of your friend's creditworthiness? This can be a sensitive issue, as many people have an unspoken rule that money is not something to be discussed. And let's be honest, who likes to lay their cards on the table in front of their friends? It may sound harsh at first, but we speak from many years of professional experience when we advise you to play it safe and only sign the contract once you have proof that the purchase price will be paid—regardless of any promises you may have received beforehand.
But that's not all: if the purchase is successfully completed and defects suddenly appear that were not noticed before, the previously familiar atmosphere can quickly change. The same applies if important information and documents such as construction drawings, entries in the building encumbrances register, proof of the development situation, or the energy performance certificate have not been exchanged. The nice friend can then quickly turn into an urgent plaintiff.
Keep a cool head
Selling to a friend quickly becomes more complicated than you might think, more complicated than selling to a stranger, and more complicated than it needs to be. To avoid having to worry about all of this, it is advisable to bring a professional real estate agent on board as a mediator. By hiring a professional, you minimize legal risks, receive a professional valuation, obtain all sales-related documents, and can hand over all obligations with peace of mind when signing the purchase agreement.
Hiring a professional also means that you can still sell to your friend in the end, even if they don't make the highest bid. You have simply brought in a specialist who will negotiate the best compromise for both parties and professionally separate friendship from business. Thanks to their experience with real estate and in dealing with complex sales and people, they can take a neutral, third-party position. He sees himself as a mediator between your requirements for a successful sale and your friend's interests as the buyer. The real estate agent is thus in a position to ensure that the transaction is completed and that the good relationship is maintained. This makes the real estate sale a relaxed experience for all parties.
Selling among friends – with a real estate agent, both parties are on the safe side
With more than 20 years of experience in the local real estate market in the Olpe district, we are happy to assist you in facilitating a satisfactory sale for you and your friend, neighbor, or acquaintance. We ensure clarity in price negotiations by determining the actual value of the property, ensure that the sales process runs smoothly and quickly, and are also networked with trusted appraisers, experts, and lawyers who can assist you with legal and financing issues if necessaryreputable appraisers, experts, and lawyers who can also assist you with legal and financing issues if necessary. We are of course available to you at any time as your personal contact and will accompany you through the sale until its completion.
Contact us now for a no-obligation initial consultation. We look forward to getting to know you, your property, and perhaps your friend.