My tenant has asked if I would sell my rental unit. I am willing to do this and am wondering what I should ask. The market analysis that a realtor did for me says $259k is listing price. I don't feel this is out of line for this house. If I sold to the tenant I would save the realtor fee but have legal cost for doc prep by a lawyer.I wouldn't risk a long wait on the market although this market is moving pretty quickly if you price reasonably. This type of house is the type that sells since many of the houses in town are either really old and needing a lot of work or really large pricing normal people out. It is a small town (1100 people) with a mix of everything. The block the house is on is a good one and it is located close to the schools, city park, restaurants, bars, PO, and market.
Since it is about 5 hrs from home, it would prevent me having to take a week off of work to do stuff like painting, cleaning the yard etc that comes with selling a house that is in good condition and just needs sprucing up. How much should I discount off the CMA? Thanks
Maybe tell your tenant that he/she has to cover the legal fees as part of the closing costs, if that is what is holding you back.
If you are 100% confident in knowing what the place will sell for reduce the price by 50% of the sales commission below market value.
If you are not 100% confident on the final sales price list it with a agent and let the tenant make an offer.
It is very rare that tenants will be able to buy.
Could you convert to a lease option for a few years? Put some of the ownership and responsibility on them. Structure that the building principal for them and then exceeds the buy option a few years in?
Low risk for you, make some $ and is advancing the direction they want.
I suspect the tenant won't be able to buy. They are good tenants and there are 3 working adults (2 parents with adult daughter and her daughter). All adults have filed bankruptcy in the last 4 or 5 years.
I would be willing to write a lease/purchase on it since right now I have a lot of crap going on in my life and trying to 1031 during this time would be difficult.
I would love to hear any other ideas.