If you’re selling to a family member or friend, a real estate agent is not always necessary. However, we and other law firms would require an Agreement of Purchase and Sale, as would your lender. Truthfully, some lenders will require an agent to be involved in the transaction.
If you are on the fence about having a realtor involved, sellers have sometimes asked realtors to drop the commission rate. Also, hiring an agent may be helpful when determining a sale price, as they can provide a comparative market analysis. Realtors also have the experience of drafting clauses which crystallise the terms agreed upon between yourself and your family member, thus eliminating errors and misunderstandings.
Although a realtor is not necessary, it is a smart investment to protect the relationship between you and your family member.
