Anybody done this, did it really save a you a lot of money, did tenant negotiate tough or was easy to reach an agreement
You would save money on real estate agent commission for sure.
But on the other hand, by not listing it with an agent and exposing to the market, you might be not achieving the full market value.
So have the property appraised to know what it is worth before agreeing to a price with your tenant.
In the current market an agent is not needed , you simply pull some comps off the internet.
Last house I bought from a friend saved 8k. Looks like I am buying house number 2 from a neighbor with no agent, add 6k with an agent.
Really simple if you are lucky enough to find a FSBO or word of mouth an agent is not needed.
If you’re comfortable with the price, sell it yourself. If your tenant starts lowballing and making it more of an issue, you can always withdraw your offer and list it on the open market.
You can do the math. If you can list/sell it with a realtor for $200K, you’ll end up spending 10K on realtor fees. Offer it to your tenant for 192, and you both win.
You can have an attorney draft you a purchase agreement, assuming you and your tenant agree on all the terms of the sale (price, escrow length, contingencies, etc), for a small flat fee. Typically it is inexpensive because they will not represent either party and will not negotiate any terms, they just draft all the documentation that the title company will need to do the title search and transfer title.
I've seen people save some money doing this, particularly if your property is worth a lot of money. 5 or 6 percent of a $500k property is going to be a hefty commission amount. But 5 or 6 percent of a $50k property could end up being cheaper than paying an attorney. I'd take all this into consideration.
We have done this many times & often hold the note. In fact over 35+ years I have probably only listed 3-4 properties with an agent because they were out of state. In the majority of cases the tenants have always offered us a lot more than what we thought was a fair price.
If you have a friend that is a realtor or a realtor willing to help. You can get the proper value in order to sell the home for the maximum value.
I am buying house number 6 and number 7 in the next month . No agent , no commissions . It isnt difficult
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.