Renter wants to Buy Rental House

[Isaac Isaacson]

How do I play this correctly to maximize price? The house was not on the market; however my property manager informed me that my renters (pre-aproved, good credit, etc) are interested in buying it. I said I would consider any offers. Neighborhood is in upper-end, high demand area in New Orleans.

I was not considering selling before I heard this. However, I was looking for funding to acquire some more houses, and could probably leverage the sale into two properties. Can I push for their offer without sounding desperate? Their lease ends in July.

I am new to this, so feel free to include any advice - no matter how obvious it might seem.

[Bill Gulley]

Lucky you! This happens as renters get renter's remorse and see rents going out the window, in this case they seem to be qualified, so lucky you.

While it sounds good to ask for a premium so they don't have to move, their appraiser won't see it that way and their financing will be based on the appraised value or sale price, which ever is less!

IMO you don't need a Realtor as you have the buyer. You can seek an attorney for a simple contract or probably scronge one up. If you do get a Realtor you could get one as a Transactional Broker to facilitate the deal at a reduced commission, probably a flat fee. I'd suggest offering $1,500 or even a little less as there is nothing to do except the contract and schedule closing and coordinate requirements. The Realtor has no advertising, no showings or time spent in marketing the property.

If you are willing to sell at the appraised value you can state that in the contract as an adjusted sale price, subject to seller's approval and initially set a price you know will be higher. Let the buyer seek financing and it will be appraised, if that price is agreeable to you then adjust the price and sell it.

And, BTW, if you don't have a sale agreement with your PM you can go straight to the tenannt and deal with them directly. Simply tell them you were not thinking of selling the house but that you guess you would as you don't keep any property forever.....that or something to that affect should keep the perception of your being excited at a minimum. Good luck....