Should You Sell Your Home to a Private Buyer?

We are selling quite a few homes off-market to private buyers these days, and it’s happening everywhere, especially here in Keatington. We usually have a list of people wanting to move into the neighborhood. It's very appealing to our clients, particularly now, when one considers the prospect of strangers walking through your home. It's tempting, and we can probably make it happen, but you should give it some serious consideration.

There's no right or wrong to sell it to a single prospective buyer. It is a matter of what is most important to the seller--price, or convenience.

Here are things to consider when making the decision:

PROS of selling to one particular buyer:

-Less preparation. We don't usually prepare for a buyer we know as we might for our professional photographer and full-scale marketing campaign.

-You don't have to worry about showing your home repeatedly and keeping it tidy in between showings.

-There is usually very little, if any, negotiating. The buyer knows they're at an advantage without competition and typically won't attempt to negotiate much.

CONS of selling to one particular buyer:

-In short, the seller forfeits the opportunity for the highest and best price. Without a public offering through the MLS, the exposure to buyers is limited, so is the chance for multiple offers. Bidding wars are not accidental. There is a strategy for creating them.

-Selling to someone you know sometimes makes any negotiation awkward, especially if there are inspection and/or appraisal deficiencies to be worked out.

-If something goes wrong in the transaction, there may be a relationship involved. 

So the decision comes down to price or convenience. Either is okay, in my opinion, as long as everything is completely transparent and fully disclosed. However, I think the very best process is a combination of both.

When I have a new listing, I tell everyone on my list in advance that it's coming, we do a little staging, and prepare our marketing campaign. When it goes on the market, the first showings are usually those known to the seller and me, but also all buyers in the MLS have an equal opportunity to offer at the same time. Everyone has an equal opportunity to compete fairly, ensuring the seller receives the best price.

Price or convenience, we have the marketing plan to achieve either goal. 

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