Coming up with a direct sale offer

[Kevin Phillips]

Hey everyone, I am in a unique situation and looking for advice on how to come up with an offer to my landlord. A couple years back, I was in talks with my landlord about purchasing the house I have rented out of for the last four years. 2 years ago she came to me with a price for the house. She was going to sell the house as is for a really great price here in the Nashville. I ended up not being able to get approved. So I put the house purchase on hold for the next year and saved. In May of 2020 I revisited purchasing the property with my landlord. In that year she increased the asking price by 10k. I still thought this was a great deal for my market. I was able to get approved this go around. My landlord and I were in agreement (not in writing) that after I was preapproved, we would go the next step and she would sell the house. Within the timeline of my landlord and I making that agreement and me actually getting preapproved, I was notified that my landlord was ill and they did not want to make any financial decisions. At the end of February my landlord passed away and her son has since taken over the business. I still am looking to purchase this property, but not sure how to bring up the conversation to my current landlord. I am looking for advice on that and how to present the offer. I was thinking about sitting down and while presenting the offer but know know where to begin coming up with it. I was thinking of increasing the offer by another 10k since that is was my original landlord had done. However; I know how hot the Nashville market is and feel he might not like my offer knowing he could potentially sell it for more down the road. Just not sure where to begin on making the offer. I am looking to do this without an agent because I want to make the offer more attractive for him not pay unwanted fees. Please let me know what you think, and any advice you may have! Thanks

[Bill B.]

Does the new owner have other properties? Most people don’t want to be landlords and they may only be taking the easy money and hanging in there until you move out to sell. This may be especially true if they aren’t local. You can also remind them they received a stepped up basis when they inherited the property and should be able to sell tax free.