Renegotiate or walk away?

Question

Russell Brazil · Answer

Just extend the closing date and make the seller deal with the tenant.  This doesnt need to be a big deal. Closings get delayed for a variety of reasons all the time.

Thomas S. · Answer

Stay in contact with the seller. He may be looking to sell the property he moved the tenant into soon.

Wayne Brooks · Answer

1) delay the closing date

2) go ahead and close, get a discount for doing the eviction

Jason G. · Answer

I would personally change the closing date.  If you are financing the property ask the seller to cover any rate lock fees while the eviction process is taking place.

Jessica Zolotorofe · Answer

A lot of good ideas. One additional thought is closing with an escrow so that the seller has 45 days to evict and if they fail to do so the escrow is released to you and you can deal with it yourself. I would propose that the escrow amount covers attorneys fees, lost rent for the month they should have already done this, costs of suit, including eviction costs, and a convenience cost since this was their obligation and you don't want them to just leave it to you without penalty. This way you close and start collecting rent on the other units and it's not your problem to deal with this person. See if they go for it.

Megan Phillips · Answer

I would make the current owner deal with delinquent tenant. Also, make sure that prior to closing (if you extend) you do another walk through it case the tenant trashes the place and there's damage that you'll have to deal with. Potential bargaining chip down the road.

JD Martin · Answer

My own personal approach is I don't close unless the property is vacant. In this case I don't see the harm in delaying the closing, since the seller can't meet the terms of the contract, unless there's some financial harm to you (higher interest rate, etc). In that case anything that's beyond a minor delay should provide you some concessions.

Eric Dymesich · Answer

The closing was today at 11:00. I went to the house at 10:00 and it was still full of the tenant's stuff. People were there hauling out junk but couldn't fit it all in one dump trailer. They were out of room and the garage was still full of stuff. My realtor and I were both frustrated with it. I offered to push the closing out 2 days but I asked for $300 off the sale price because the seller is wasting everyone's time and I felt like he should have to give up something for doing that. The selling realtor said that is fine and then called back and said the owner will not budge. He sounds like a real jerk and people I talked to that know him to say the same. (Small town 9,000 people) Anyway, the selling realtor said he will put in the $300 just to keep the sale. So Wednesday is take 2. It doesn't look like there is anything standing in the way this time. I was frustrated with the deal but I just go back to the numbers and according to the numbers this is a good property and it will end up being a good rental for me and my wife.

Thanks, everyone for the great input!

James Yang · Answer

We don't know see the numbers on this property, but if the deal is really good then just delay. Let the seller correct this issue so you won't have any headaches going in. Plus, tenant may even damage the property before leaving.

Renegotiate or walk away?

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