Would our personal home be marketable?
My husband is retiring & we are moving to another state early 2023. We would like to sell our 3-yr-old home to an investor since rentals are common in our subdivision. The house next door is exact same model as ours & the upstairs rents for $1,600/mo + $200 utilities, & the downstairs for $1,300/mo + $200 utilities (it sold 6 mos. ago for $357k). Only difference in our home is that our basement is unfinished (Zillow values it at $330,900). We would like to rent from the buyer for 4-5 months--or as long as it takes for our new home to be move-in ready, at the same mortgage we pay now: $1,120. We think this benefits the investor, since a new renter is not needed immediately. Do you think this would work, and how could we locate an interested investor? (prefer just working with a law firm for the paperwork, bypassing a realtor)
@Karen Collins, if lease comps are indicating $1,600 at market rent for the upstairs then an investor is going to want you to vacate by closing. The new owner would be losing money renting the property back at $1,120 per month which is significantly below market value. The only acceptable trade-off would perhaps be if there was an agreement in the lease that allowed the new owner to start renovating the basement while you and your husband reside on the property. Also, Zillow estimates are typically never accurate. To locate a potential buyer, you can list the property on all real estate-related platforms like Zillow. Why is the sole focus to sell to an investor? You may want to consider a primary home buyer that has been looking for a while to get full value and then do a lease back. Hope this helps!
Michael, thank you for that insight! Yes, we thought about that possibility--that the buyer would want to start work on the basement while we are there, which we would be agreeable to. Oh, I didn't think of finding a primary home buyer willing to let us lease until our home is ready -- we're probably more likely to find prospects in that group. And thanks for the recommendation to use RE platforms like Zillow. I'd forgotten that we can do that on Zillow . . . Thank you!!
Quote from @Karen Collins:
My husband is retiring & we are moving to another state early 2023. We would like to sell our 3-yr-old home to an investor since rentals are common in our subdivision. The house next door is exact same model as ours & the upstairs rents for $1,600/mo + $200 utilities, & the downstairs for $1,300/mo + $200 utilities (it sold 6 mos. ago for $357k). Only difference in our home is that our basement is unfinished (Zillow values it at $330,900). We would like to rent from the buyer for 4-5 months--or as long as it takes for our new home to be move-in ready, at the same mortgage we pay now: $1,120. We think this benefits the investor, since a new renter is not needed immediately. Do you think this would work, and how could we locate an interested investor? (prefer just working with a law firm for the paperwork, bypassing a realtor)
If you are looking for an investor to sell to, ask tenants for their landlords contact info. If they own one property in your community they may be looking to buy more.
Quote from @Mark Fein:
Quote from @Karen Collins:
My husband is retiring & we are moving to another state early 2023. We would like to sell our 3-yr-old home to an investor since rentals are common in our subdivision. The house next door is exact same model as ours & the upstairs rents for $1,600/mo + $200 utilities, & the downstairs for $1,300/mo + $200 utilities (it sold 6 mos. ago for $357k). Only difference in our home is that our basement is unfinished (Zillow values it at $330,900). We would like to rent from the buyer for 4-5 months--or as long as it takes for our new home to be move-in ready, at the same mortgage we pay now: $1,120. We think this benefits the investor, since a new renter is not needed immediately. Do you think this would work, and how could we locate an interested investor? (prefer just working with a law firm for the paperwork, bypassing a realtor)
If you are looking for an investor to sell to, ask tenants for their landlords contact info. If they own one property in your community they may be looking to buy more.
@Mark Fein: Yes, we contacted him and he's not able to swing it right now (lives on the other end of the country from us). My husband and I have decided it would be worth it, even if we have to pay the higher monthly lease for those few months, so we will continue to look for either an investor or a primary home buyer to see if this would work. Thanks so much for your input!
@Mark Feinundefined