Having a relative or longtime friend ask for your help selling their home can be quite an honour. However, it is also a sombre responsibility, and you must do your best to honour their wishes wherever possible.
The first step before agreeing to the task is to sit down and have a clear conversation about what your loved one expects from you. For example, are they just asking for you to be there to provide advice or a sounding board to bounce their ideas off? Or do they want you to make legal decisions on their behalf?
The more you understand the scenario, the better you and the person you are helping will be. In this post, we’ll walk you through the main steps of selling on behalf of someone else.
Types of Assistance
If a friend or loved one asks for help, they may still be making the bulk of the decisions for themselves and want you to be around for support. In this case, you may provide packing assistance or help to arrange for contractors, cleaning, or moving services.
Another scenario is that they do not feel up to the challenge of selling the house, either mentally or physically, and want you to step in to make all or most of the big decisions.
In the third scenario, they may ask you to sell their estate after they have passed away.
Knowing the scope of your responsibilities allows you to determine whether you will have both the time and ability to assist your family member effectively.
Do You Have the Resources to Help?
Whenever someone asks for help, it’s easy to feel as though you are automatically obligated to act. Saying “yes” might feel like the right thing to do, but it’s a decision you should only make after careful contemplation.
Remember that your family member or friend is likely relying on the proceeds of the sale so they can move on to the next step in their life. Taking on the responsibility if you lack either the time or skills to accomplish their goals is actually a disservice.
On the other hand, if you have a certain amount of analytical and organizational skills and can act as a liaison between the listing agent and other professionals, you can ensure the best possible outcome for your loved one.
Selling a house can be a challenging task, but there are plenty of resources that can help. You’ll find a few below:
- Is It Better to Buy or Sell First in Peterborough?
- Why Should You Stage Before Selling Your Home in Peterborough?
- When Is the Best Season to Sell Your Peterborough Home?
Getting Organized and Authorized
The good news is that even though selling a home for someone else can feel overwhelming, you never have to do it alone. Surrounding yourself with experts from the beginning can mean achieving the best outcome with the minimum amount of stress and disruption in your life.
Throughout the process, you will likely need to converse with real estate lawyers, tradespeople, in addition to keeping the peace with other family members.
That said, connecting with a local real estate agent will help you through it all. A Realtor® who has been in business for some time will have access to everything and everyone you need to streamline the transaction. An experienced professional can also help you understand the entire scope of the project and outline what documentation you may need.
For example:
- If your loved one has asked you for moral support or physical assistance, Power of Attorney will not be necessary.
- When making decisions on behalf of someone still living, you will need to work with a lawyer to obtain Power of Attorney status.
- When conducting an estate sale for someone no longer living, you will need to be the Executor of the will.
What Is Power of Attorney?
We are not lawyers and recommend obtaining legal counsel before agreeing to sell a house for someone else. Still, we can provide a brief overview of what it means when a loved one designates you as their POA (Power of Attorney).
POA is a legal document that outlines what authority a third party has over someone else and what legal decisions they can make on their behalf. The person granting POA is usually referred to as the “grantor.”
- One type of POA is for health matters, where the Power of Attorney can make medical decisions for someone else.
- When selling a house, you need Power of Attorney for financial matters, which allows you the authority to manage your grantor’s property and investments.
A friend or family member who asks you to take on this responsibility is showing a great deal of trust, both in your capability and your character. If you agree, you will then have a fiduciary duty towards your grantor. This is a fancy way of saying that you must, by law, represent their best interests at all times.
Location is invaluable when selling a house. Here are just a few reasons why buyers are looking in Peterborough:
- All About Peterborough’s Stunning Green Spaces
- Our Favourite Small Businesses in Peterborough
- Top Activities for Kids in Peterborough
Preparing for Outstanding Results
When selling a house for someone else, you should endeavour to obtain the highest price possible under the circumstances. If a fast sale is a priority, you may not have time to do all of the renovations and preparations before the listing goes on the market.
However, you can still use the resources you have to show the home in the best possible light and appeal to the highest number of potential buyers. Here are a few minor touch-ups you can make that could add perceived value even when selling a house as-is.
- Clean the house thoroughly and remove all unnecessary items. A blank canvas means prospective buyers won’t be distracted by the owner’s personal items and knick-knacks. Instead, they can see the potential the home offers for their lifestyle.
- Add a fresh coat of paint throughout, especially in the kitchen, bathroom, living room, and bedrooms. A neutral colour helps to modernize the house and even gives the impression of spaciousness.
- Spruce up the exterior by washing doors and windows, mowing the lawn, and ensuring the yard is free of debris and clutter.
- Maximize the amount of natural light by replacing dark curtains with soft sheers.
- Consider working with a professional stager to design the home for maximum appeal to potential buyers.
Capitalizing on the value of an older home doesn’t always mean undertaking significant construction projects. Often, minor details like the above can result in a successful sale that allows your loved one to move forward with peace of mind.
Do you have questions about selling for yourself or on behalf of someone else? We are happy to help with anything you need. Reach out today to team@jeffandkatie.ca or call 705-243-9797 to take the next step.
