Why Not to Sell To Friends and Family

At first glance, selling your home to someone you know may seem like the easy route. In some cases, like a family member selling their home to an adult child, niece, or nephew, it might seem like a charitable way to give the next generation a leg up on achieving the American dream.

The process argument in favor of selling your home to someone you know is that you don’t have to prep for strangers, manage showings, or deal with the market. If a friend or relative expresses interest, why not skip the listing process altogether?

But informal offers from people in your social circle or family can potentially create more problems than they solve. What looks like a shortcut or altruistic gesture often turns into a slower, more stressful sale and a far less desirable financial outcome.

Lower Offers, Awkward Conversations

Friends and family don’t usually come in with top-dollar offers. They almost always expect a ‘friends and family’ discount. That puts you in the uncomfortable position of deciding whether to prioritize your financial future or your relationship.

If you do end up declining their offer, it can create tension that lasts well beyond the sale. Your decision may end up being a topic of conversation among your extended family or friend group, potentially transforming what was a nice gesture into unfair characterizations about your motivation.

Family and friends also know that you’re going to be subject to peer or familial pressure to cut them a break. This dynamic gives the buyer far more leverage than they would normally have.

Buyers who know you may expect a more informal process and negotiation. They may float numbers, ask for favors, or hope you’ll waive contingencies without the normal boundaries a seller sets with a stranger.

Blurred Lines, Slower Process

One of the most common problems with friend-and-family sales is the absence of urgency. Without a structured showing process or competitive pressure, buyers feel like they can take their time. They may drag out financing, fail to meet deadlines, or go cold altogether, particularly if they know there’s no competition.

Most sellers can’t afford months of delays, especially if they’re relocating for a new job, trying to close on another home, managing carrying costs for two properties, or relying on the proceeds of the sale to fund their next move.

Pressure to Make Exceptions

You might feel obligated to give your acquaintance early access, accept a weaker offer, or overlook a red flag because it feels impolite to push back. Once you’re under contract, any concessions you made become real liabilities if the deal falls through.

Selling your largest asset isn’t the time to prioritize politeness over protection.

No Competition Means No Leverage

Although the process of selling a home is complex, the psychology of maximizing offers is straightforward. Urgency and scarcity, which are key to maximizing home value and sale speed, only exist if there’s competition among buyers. If you take competition out of the home selling equation, you’re surrendering your opportunity to maximize your home sale price.

Even if your acquaintance is serious about buying your home, they’re unlikely to offer their best price if they know they’re the only one in the mix. People almost never pay more than they have to for anything, especially for big ticket items like real estate.

The Open Market and a Professional Home Selling Process Will Invariably Lead to Better Offers

If someone you know is truly interested in buying your home, that’s great, but let them compete like everyone else. A professionally managed listing creates fairness, structure, and urgency. It protects your time, your price, and your relationship.

At 72SOLD, we use a honed marketing strategy to target interested and qualified buyers quickly, oftentimes before listings even formally go live. Our selling process is tailored to generate a sense of urgency and competition among potential buyers. Sellers who want to maximize their home’s value should fill out the form on our website to learn more.