Thinking of selling, how to price?

Question

Hello,

I have a nice sfh in clarksville tn I am thinking about selling. Currently have a renter in there at $1175 a month with 11 months left on the lease. I have no doubt i could sell it, if empty, for no lower than 150k. Is there a discount for a property that has a renter in it already? Not sure how to price the house. Any suggestions?

Jaysen Medhurst · Answer

@Michael Redmon, no, you price it based on the market. The new owner must honor the existing lease. Be aware that a buyer may make the sale contingent on the property being delivered vacant, though. So, there might be some negotiation.

Jaysen Medhurst · Answer

@Michael Redmon, I think your capital could be better deployed elsewhere. Sell it and 1031 into a nice cash flowing MFR. Less work and more money.

I’m also not a fan of FSBO. The 5% commission is well worth it. If you get just $7500 more (not to mention the money saved on marketing and the time saved with showings) the agent has paid for themself.

Theresa Harris · Answer

If an investor buys the property, having an tenant in place and paying market value is a good thing.

Rylan Kean · Answer

Hey Michael,

Yes, typically a property that is currently occupied leads itself to be sold at a discount for the simple fact it makes viewing and inspecting the property much more difficult. If you are going for retail, the best thing to do is to wait until their lease is up and not renew. If you are selling as a rental property, then you wold want to price with a mix of the property value and rent. Location plays a huge role as well.

Would be happy to chat if you are interested in using an agent, I am an investor and agent who is very familiar with buying/selling rental properties. It doesn't sound like it would fit my criteria but would be happy to provide a CMA and introduce potential buyers depending on what we landed on.

Feel free to message me or click my profile for my number.

Michael Redmon · Answer

sure, 1227 cobblestone lane. I see comps are running about 100 bucks a sq ft and this is a 1500sq foot place so I was looking at pulling out 140K. Then again, I am always on the fence about selling, I have been renting it for 20 years. When I am dealing with a pain in the butt contractor or tenant those are the days I really am sick of it, when the rent check comes I am obviously in a different state of mind. Suppose thats the same for everyone.

Eric L. · Answer

@Michael Redmon

Investot/realtor in clarksville, I say offer it with tenant. There's plenty of investment properties there. You can try the Fsbo route, but that will limit you not being in the area. You could do the zestimate(super rough estimates), or look on there for comps. I will say the #1 reason fsbo doesnt sell is marketing and lack of access to buyers. The #2 would be bad offering price and unwillingness or inexperience in negotiating. Having a realtor doesn't always make that go away, but it can with the right company.

Are you willing to share the address? Maybe marketplace on BP would be a good option.

Michael Redmon · Answer

Thanks Sam.

Sam Shueh · Answer

No, if owner is interested in move in they have to get rid of the tenant. I will do it after lease expires. I have a couple of realtor friends in that popular town.

Sam Shueh

Michael Redmon · Answer

Thanks Ryan but not sure I am up for paying 6% to sell. I agree with the discount but not sure what percent I should take off the asking. Maybe market will still be hot next summer.

Thinking of selling, how to price?

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