Selling the family home can be very emotional… for parents, adult children and grandchildren alike. You are not only saying goodbye to the house, you are also saying final goodbyes to the home where you built family memories.
Making the decision to sell can be a difficult process in itself… often complicated if there are multiple siblings who have competing interests.
Consider the options… also consult with an attorney and/or tax accountant to assess how different options affect your tax liabilities.
- Sell to one sibling – one could buy the others out, either in cash or by financing with a mortgage or contract for deed
- Rent and split the profit – pay someone to manage the property (can be a sibling) and split the net profit after expenses
- Sell and split the profit – if siblings all agree to sell, what is often easiest is splitting the net profit after expenses associated with the sale including clearing out the house, repairs, updates, closing costs, etc
All stakeholders and spouses must sign sale documents, so all need to be part of the decision-making process. It is easiest if you designate one sibling to be the primary contact.
Once you have decided to sell, you have options on how to sell and market the property. It is striking the right balance for both your property and your motivation.
Preparing and pricing the home depends on multiple factors, such as…
- Condition of your property to begin with
- Your target market
- How much time, money and energy you want to invest into preparing it
- Your priorities… highest price, quickest sale, least work, etc
Just as sellers have different priorities, so do buyers. Keep in mind that different buyers are looking for different things, and the key to a quick and easy sale is to stand out in comparison to other properties buyers are seeing that fit their priorities.
Option 1 – Move-in ready buyer
These buyers are looking for a home where they can just move in and not have to do much, if any, work… some fresh paint colors may be the extent of the work they want or are able to do. If the home is in good condition to begin with, this may be your target market. If so, it is worth it to make sure it is in tip-top condition and properly staged… many buyers cannot visualize how furniture will fit and how they will actually live in an empty space.
Clean and well-prepared properties usually yield the highest price, but should still look better and be priced better than other comparable properties in tip-top condition to get the quickest sale.
Option 2 – Cosmetic updates needed buyer
These buyers usually want a home that is structurally sound and has ‘good bones’ but needs
updates, as may be found in an estate or a ‘Grandma house’. This type of home often appeals
to homebuyers who plan to live in the property and make updates themselves… sometimes to
save money and build sweat equity, sometimes so they can make the space their own.
To sell this kind of property, clear out the space, clean it, make any repairs required by the city… and price it lower than similar properties in move-in condition.
Option 3 – AS-IS condition buyer
Here I am referring to properties in need of considerable work. The work may involve anything
from structural and mechanical repairs to cosmetic updates, to city inspection issues or
hauling out items and debris left behind. To sell these properties the biggest factor is having a rock-bottom price. Even in this category, however, the properties that look better than other properties at the same price point sell the quickest.
If your property is in need of considerable work another option to consider is selling direct to a professional home buying corporation such as “We Buy Ugly Homes” or “Home Vestors”… there seem to be more and more of them appearing all the time. If siblings are scattered across the country and the property is in need of considerable work this could be a good option as long as everyone is ok with a price considerably lower than even the AS IS option… you all must agree that no hassle is a good trade-off for a low price.
Contact us for a free consultation to discuss your options for sale and how to prepare for your target market. If you don’t have the time or resources to clear out the property yourselves, there are professional companies who can help or even take care of clearing everything out after you have taken items you want to keep. Ask for recommendations based on your needs.