How to Sell Property Privately: Pricing, Paperwork and Taxes for a Direct Sale (2026)

Updated October 2026. For owners who want to sell privately: to a relative, a tenant, a neighbor or another buyer they found themselves, with or without a public listing.

How do you sell a property privately and still protect yourself? Agree a price backed by an appraisal or recent sales, sign a written contract with the buyer, and close through a title company, escrow company or attorney. As of October 2026, private sales are common among owners who sell themselves: in NAR’s 2025 Profile, 60% of for-sale-by-owner sellers already knew their buyer. The steps below cover pricing, paperwork, taxes and money.

Jump to: 🤝 When it fits · 💲 Pricing · 🪜 Paperwork · 🏠 Taxes · 🏢 Private vs MLS · ❓ FAQ

“Private sale” can mean two things. One is selling without an agent but with public marketing. The other is a quiet deal with a buyer you already have. This guide is about the second, and about when going public makes more sense. For the full by-owner process with a public listing, read our guide to selling your home without a realtor.

When does a private property sale make sense?

A private sale works best when the buyer is already at the table: a family member, your tenant, a neighbor who wants the lot, or a friend who’s been asking for years. You skip marketing and showings, and the timing is often flexible on both sides.

It’s riskier when you don’t know the market. Without public exposure, nobody competes for the home, so you could leave money on the table. If you’re not sure the price is right, test it, as we explain below.

It’s also legal. You don’t need a real estate license to sell your own home. You do need to follow your state’s disclosure and contract rules, which plain-English guides from Nolo Legal Encyclopedia help explain.

How do you price a private sale fairly?

Start with data, not a number someone suggests over dinner. Pull sales of similar homes nearby from the last three to six months. Then run a comparative market analysis with our CMA calculator or a quick home value calculator estimate.

For a family or friend sale, pay for an independent appraisal. It costs a few hundred dollars and gives both sides a number they can trust. If the buyer has a mortgage, the lender will order one anyway.

Selling to a relative below market value? The gap can count as a gift. The IRS lists the 2026 annual gift exclusion at $19,000 per recipient; larger gifts generally mean filing a gift tax return, though tax is often not due. Lenders can treat the discount as a gift of equity: Fannie Mae covers it in its Selling Guide on personal gifts, which notes a gift of equity can’t count toward reserves. Our article on the tax implications of selling below market value goes deeper.

What paperwork do you need to sell privately?

A handshake isn’t enough, even with family. You’ll need:

• A written purchase agreement with price, deposit, closing date, contingencies and what’s included.
• Your state’s seller disclosure form, plus the federal lead paint disclosure for homes built before 1978.
• A deed prepared by the closing office or an attorney.
• Payoff letters for your mortgage and any other liens.
• HOA documents, if the home is in an association.

Our list of essential paperwork to sell without an agent walks through each one. Beycome sellers also get state forms in the dashboard.

Then pick a neutral closing office. A title company, escrow company or closing attorney holds the deposit, checks title, prepares the closing statement and records the deed. Our guide to how escrow works explains the role. In Florida and Texas, Beycome Title closes sales today ($99 prepaid in Florida, a $299 settlement fee per side in Texas), and it adds Michigan, Ohio, Illinois and Indiana starting November 1, 2026.

What taxes apply when you sell a property privately?

The same as any sale. If the home was your main residence, IRS Publication 523 says you may exclude the first $250,000 of gain, or $500,000 for a married couple filing jointly, if you meet the ownership and use tests. Rentals and second homes follow different rules; see the IRS site or a tax pro.

Someone also has to report the sale. Under the Form 1099-S instructions, the person responsible for closing generally files it, which in practice is usually the settlement agent on the Closing Disclosure. Some sales of a main home are exempt if the seller gives a written certification. Your closing office will ask.

Want to cut the bill legally? Our guide on how to avoid capital gains tax when selling a house covers the exclusion, improvements and timing. Investors can also read our tax and legal tips for real estate investing.

How does the money move in a private sale?

Through the closing office, never hand to hand. The buyer’s deposit goes into escrow. At closing, the office pays off your mortgage, pays transfer taxes and recording fees, and wires you the rest. If the buyer has a loan, the lender sends the Closing Disclosure at least three business days before closing; the Consumer Financial Protection Bureau explains each line.

Seller financing, where you act as the lender, is possible in a private sale. It needs a promissory note, a recorded mortgage or deed of trust, and often a licensed loan originator depending on your state. Get legal advice before you offer it.

Thinking about using the cash next? Our articles on funding paths for commercial real estate investors and ways to make money off property cover common next steps.

Should you sell privately or list on the MLS?

If you already have a buyer at a fair price, a private sale is simple. If you don’t, or you’re not sure the offer is fair, public exposure tells you what the market will pay. Most buyers’ agents search the MLS.

You don’t have to choose between a full commission and no marketing. A flat fee MLS listing with Beycome costs $99 (Basic) or $399 (Enhanced), with $0 to Beycome at closing, and you still run the sale. Because Beycome’s fee is earned when the listing goes live, nothing more is owed to Beycome if your relative or neighbor ends up buying. Some states also allow an open listing, and a private or office-exclusive listing is another middle ground.

Want a person in your corner? Beycome Concierge gives you a dedicated expert who negotiates for you while you stay in control, for $999 through October 31, 2026 (list price $1,399). For the by-owner basics, see our for sale by owner support page and how to do FSBO the right way.

Before you sell, small upgrades can help the price. Our guide on how improving your garden area can raise your home’s value is a good start.

Frequently asked questions about selling a property privately