I own a flip that I was unable to sell, so I am currently leasing it out. The tenant has fell in love with the home & has approached me about buying it outright. We've built a good relationship & now I'm wondering what the two of us can do in order to keep transaction fees during the closing process to a minimum. We have a mutual real estate agent that is going to do the buy & sell at 4%, so I'm saving 2% right there. Is there anything else anyone can think of to save on other closing costs?
I assume you are going to do seller financing. That will save on lender fees.
Thanks for the reply @Neil Aggarwal . I don't think seller financing is really an option because my tenant won't have any issues getting approved for a mortgage & she'll be able to lock in a lower rate than what I'm carrying on my note.
I'm wondering if there's anyway to cut some of the legal costs out? Anything I could do on my own, like deed transfer with the county?
If you are using a lender, the will probably not let you do the deed transfer yourself.
did the agent bring you the tenant? You dont need an agent to sell a property
why use an agent if buyer was your tenant?
no agent needed. Get a basic purchase/sale agreement. He takes to the bank. They do what they need to do. The bank does the closing for a minimal fee. You have very little closing costs. The buyer has only his loan costs.
@Joshua Iachini As, @Steven Picker picker said, you do not need the agent at all. If they've helped, maybe you can offer a flat fee for their services, but I can't imagine giving them more than 1%. They didn't list it. They didn't bring the buyer. It is crazy that they would even be trying to get in the middle of the deal.
@Joshua Iachini I am an agent, and you don't need an agent for this. The agent's main role is bringing buyer and seller together. The secondary role is to handle the transaction and carry it to closing, which is also important. I think you could just hire an attorney for much more reasonable fee or pay the agent much less than 4%
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