You have a house to sell, he has a real estate license. What could be simpler? And best of all, Uncle Jim will cut the commission. It seems like a perfect fit...not so fast!
I read an article this morning that got me thinking about this scenario. Why You Shouldn't Mix Real Estate with Relatives. The points made in this article are all very valid.
What it doesn't address is WHY people choose to work with a relative. Sometimes it is pressure from Mom. Some of us are still not too good at ignoring her unrelenting nagging. Sometimes it is for lack of an alternative--you might not know any other Realtors®. Sometimes (and quite often) it is because a relative will be willing to cut you a break on the commission.
I have worked with family and I can tell you from experience that for every 4 transactions that go well, there are 2 that don't go well (this is from my own antecdotal evidence--having done 6 family transactions). The difference is that when I say 'don't go well,' I mean they go horribly. It is far harder to set realistic expectations with family, for whatever reason.
If you decide that hiring a family member is the right move for you, I have a couple of suggestions:
- Get everything in writing and be sure you understand what you are signing. Setting expectations is where one of my family transactions went off the rails. I thought they understood our agreement and they did not.
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Understand that family may be willing (right or wrong) to speak to you in a way that clients
would never speak to you. Familiarity breeds, well, familiarity. Being able to maintain emotional distance is one of the assets that Realtors® bring to their clients; working with family sometimes makes this difficult. Treat Aunt Susie or Grandpa the way that you would treat any Realtor®--professionally - As the article above mentions (and I put this in caps), MAKE SURE THEY KNOW YOUR COMMUNITY. There is no quicker way to create problems in a transaction than to have a Realtor® who is not familiar with your area representing you. Pricing can be very nuanced and understanding how a specific area values certain locations and features can be critical to getting it right.
If you find yourself working with a family relative or friend, be sure that all parties have a clear understanding of the arrangement. Get everything in writing and, at least for the length of the transaction, treat this person as the professional that they are--not the Uncle that read you bedtime stories or the Niece that used to cry at family gatherings. At the end of the day, a house is a house, but your family relationships are forever!
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