Need Advice on Rental Property Sale
I need some advice on a property sale that I am planning. I just spoke with my Realtor today and he says we can list it at $60,000 and probably get around $50,000 to $55,000 for the property. I just spoke with my renters, whose lease is up, and they are interested in purchasing it from me. Here lies the issue, the wife is pregnant and on disability leave until the middle of September, according to them they have pre-approval from a bank for a loan contingent on her being back to work. If I sell to them I am sure I can get the deal done at $60,000. They inquired about doing a option contract that would come up in September or October, at which time they would purchase from me.
So here are the numbers.
Sell through Realtor
Selling price of $55,000
Realtor Comm. $3300
Closing Costs (Quess) $2000
Mortgage Payoff $12,000
Pre Tax Profit of $37,700
Sell on Option Contract
Selling Price $60,000
Closing costs(Guess) $2000
Mortgage Payoff $12000
Pre Tax Profit $46,000
How much should I make them put down on the option contract and is the additional $8300 worth the risk of not selling during the peak selling season and having the deal fall through. What would you guys do?