Renter wants to buy, but at lower price

[Jul Hamer]

Need some advice BP.  I have been renting a townhouse in a suburb of Baltimore for the last 7 yrs. I have been an outstanding tenant ( landlord's words). It's a nice area close to major highways and shopping centers.  I have been watching the local market for a while and sales in this specific neighborhood have been very reasonable.  Early this year I finally mentioned to my landlord that I would be interested in buying if we could agree on a reasonable price.  An appraisal was ordered and I feel the comps used were way overestimated (like by at least $30k).  This house is 40 yrs old with squeaky floors, few modern updates, cracks in walls and baseboards, etc.  The comps used were updated with modern finishes.  The landlord came back with a reduced as is price based on the comps, but it is still way more than I expected for the neighborhood. A much more updated house sold for that same price a few months ago.  I really like the neighborhood and the house (which I have been dying to fix up for 7 yrs) but is there a tactful way to ask the owner to come down on the price? He said I could get my own appraiser but i'm not sure that will drastically change the price. Should I also order a home inspection so i have more bargaining power? I really picked an awful time to start this process ...just as housing prices are exploding.  So what are my best options for negotiation without insulting my landlord? Any help is much appreciated!

[Theresa Harris]

If they did an appraisal and the owner is letting you do one, then do it.  If they both come back higher than you expected chances are the house worth more than you thought.  Depending on the price, ask if they can come down $5K.  If that is too high, then look for another place to buy.  40 years old for a house isn't brand new, but it isn't really old either.