Planning to sell condo located in Bowie Maryland 20720

Washington, District of Columbia
Buying & Selling Real Estate
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Planning to sell condo located in Bowie Maryland 20720

Manuel Rivera
Member since 2018 · 15 posts · 0 votes

Hi, I woke up today and decided to sell my condo in Bowie MD 20720. Its a 3 story 4 bd and 3.5 bath unit. I currently have a section 8 tenant in place. I receive $3,815/month but I have to cover utilities. Without utilities the rent will then be $3,140/month. Can I sell with the tenant in place and what will happen to the lease which ends in July 2027? The condo was appraised last year for $370K. 

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
2mo
Quote from @Manuel Rivera:

Hi, I woke up today and decided to sell my condo in Bowie MD 20720. Its a 3 story 4 bd and 3.5 bath unit. I currently have a section 8 tenant in place. I receive $3,815/month but I have to cover utilities. Without utilities the rent will then be $3,140/month. Can I sell with the tenant in place and what will happen to the lease which ends in July 2027? The condo was appraised last year for $370K. 

If youre selling it with tenants in place, expect it for sell for 75 cents on the dollar. Youll need to get rid of the tenants to get market value. 
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  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    2mo

    There is a process that must be followed to notify S8 of the change in ownership. The actual transfer needs to be well and completely coordinated in terms of util transfer, SD transfer, and outstanding service requests resolved. I don't recall the timeline for notification, but it needs to be well in advance, so S8 stops/restarts payments with proper proration. Contact your local caseworker. 

    The transfer has no effect on the tenant lease, it will come up for renewal as usual, depending on what the new owner communicates to S8.

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  • Russell BrazilBusiness Member
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    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    2mo
    Quote from @Manuel Rivera:

    Hi, I woke up today and decided to sell my condo in Bowie MD 20720. Its a 3 story 4 bd and 3.5 bath unit. I currently have a section 8 tenant in place. I receive $3,815/month but I have to cover utilities. Without utilities the rent will then be $3,140/month. Can I sell with the tenant in place and what will happen to the lease which ends in July 2027? The condo was appraised last year for $370K. 

    If youre selling it with tenants in place, expect it for sell for 75 cents on the dollar. Youll need to get rid of the tenants to get market value. 
    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
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  • Rick Albert
    Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    2mo

    If you are selling with tenants it becomes an investor buyer,  who isn't reviewing comps, they are reviewing the numbers. The appraisal is based on comps in the area and likely means they looked at sales where an owner moved in, not necessarily as an investment property. If possible, find comparable sales of condos that sold with tenants in place. That is likely your best way to determine the range of value. 

    In terms of the lease ending, you have to consult with local laws as it can vary. This is especially true with Section 8 tenants as I doubt the government is keen on you removing tenants just because you want to. 

    I agree with @Russell Brazil that it could be a 25% discount but to be honest it could be more because you have to factor in HOA dues and potential special assessments. The condo market has been hurt pretty bad (generally speaking, not necessarily your location specific).

    You need to determine what your motivation is and what you would do with the money. Just waking up and deciding to sell isn't a strategy.

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  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    2mo
    Quote from @Manuel Rivera:

    Hi, I woke up today and decided to sell my condo in Bowie MD 20720. Its a 3 story 4 bd and 3.5 bath unit. I currently have a section 8 tenant in place. I receive $3,815/month but I have to cover utilities. Without utilities the rent will then be $3,140/month. Can I sell with the tenant in place and what will happen to the lease which ends in July 2027? The condo was appraised last year for $370K. 

    @Manuel Rivera
    In many cases, an investment property can be sold with the tenant and lease in place, and the buyer generally assumes the existing lease obligations at closing. Whether that's a benefit or a drawback often depends on the buyer—many investors actually prefer a property that's already producing income. I'd also review any Section 8 program requirements that apply to the lease transfer so there aren't any surprises during the sale.

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