It’s a huge relief, isn’t it? You have a friend or family member who wants to buy your house, which means you can skip the hassle of listing, staging, endless showings, and stressful negotiations. Selling directly to someone you know can seem like the easiest route, but it comes with its own unique set of challenges.
When you sell your house to a friend, emotions can get involved, and misunderstandings over pricing, repairs, or contract terms can quickly strain relationships. In the worst cases, a once-close friendship or family bond can turn into resentment—or even a legal dispute—if the sale isn’t handled properly. That’s why it’s essential to approach the transaction with professionalism and clear communication.
To help you navigate the process smoothly, here’s a guide on how to sell your house to a friend or family member in Savannah, GA and Chatham County while protecting both your relationship and your financial interests.
Have the Buyer Get a New Mortgage
When you sell your house to a friend or family member in Savannah, GA and Chatham County, it’s natural to feel inclined to offer favors and concessions to make the process easier. However, being too lenient—especially regarding the mortgage—can lead to serious financial and legal complications. One of the biggest mistakes sellers make is assuming they can simply transfer their existing mortgage to the buyer. While this might seem like a convenient solution, it often comes with hidden risks, including lender restrictions, financial liabilities, and potential credit issues.
To avoid these pitfalls, ensure that your buyer secures their own mortgage and gets pre-approved before moving too far into the process. This not only protects you from unnecessary complications but also ensures the sale remains fair and legally sound. By taking the right steps and treating the transaction like a traditional home sale, you can successfully sell your house to a friend while maintaining both your financial security and your relationship.
Get an Appraisal
You also need to keep everything on a business footing, so don’t just guess at your home’s worth or accept your friend’s or family member’s opinion about it. Hire a professional appraiser so you can get an accurate idea of the true market value. This will not only keep you from underpricing but also overpricing, which could alienate that friend or family member. Besides, if your buyer applies for a mortgage, the lender will likely require an appraisal anyway.
Don’t Discount Too Far
Of course, when you sell your house to a friend or family member in Savannah, GA and Chatham County, you will want to give and the friend or family member will probably ask for a discount. After all, the whole point is that you are saving time and money so you can afford to do that. But don’t go too far in the discount direction. If you discount more than 25% below the appraised value, you could wind up with IRS problems because the transaction may be viewed as a gift rather than a sale.
Get EVERYTHING in Writing
The old advice that you should never do business with friends or family is still good advice. In order to you sell your house to a friend or family member in Savannah, GA and Chatham County and avoid many of the problem assumed in that advice, just make sure to get absolutely everything in writing. Transparency on both sides and a written record of everything will go a long way toward ensuring a mutually beneficial transaction.
Use a Title Company
Because you likely won’t be using an agent in the traditional way when selling your house to a friend or family member, you should use a title company for the title transfer. Using a title company will ensure the transfer of the home in your name to the name of your buyer in a way that avoids legal or financial issues further down the road.
Engage Professional Help
Although you won’t be listing and marketing when you sell your house to a friend or family member in Savannah, GA and Chatham County, that doesn’t mean you should handle the process alone. It’s still a real estate transaction, and without the right guidance, things can go wrong quickly. Hiring a real estate agent can help you navigate the sale smoothly, avoid misunderstandings, and ensure all legal and financial aspects are properly handled.
Even when selling to someone you trust, it’s crucial to have a solid contract and the correct paperwork in place. An experienced agent and/or a real estate attorney can help you draft the necessary documents, handle disclosures, and ensure the sale is legally compliant. This not only protects your interests but also prevents potential disputes that could strain your relationship. Taking these extra steps will help you sell your house to a friend the right way—fairly, professionally, and without unnecessary complications.
