I posted this previously in another forum but haven't received any responses and I'm hoping to get some input from people familiar with the local market. The goal is to find a price that is fair for both parties.

I own a condo in a 55+ senior complex near Madison (village of Black Earth). This is a small complex with only 10 units, self-managed by the owners. I would like to sell and the couple who have been renting from me for the past 2 years would like to buy. They can't currently qualify for a mortgage, but have been told they will qualify in 8 months.

I think it makes sense to extend their lease until then as they are excellent tenants, and based on past sales history of these units it could take a year or more to sell even if I listed it with a realtor.

This will be my first experience selling a property rather than buying, so I'm happy to have any and all advice, starting with how to establish a price.

Should I pay for an appraisal? Ask for opinions from local realtors, but make clear I will not be listing the property? Should I agree on a price with the tenants now, or wait to establish the current value in 8 months when they are ready to apply for a mortgage?

Based on watching prices in Madison and surroundings for the past 2 years, I think it's worth $90-100,000. Redfin values it at $103,865 and Zillow at $111,349. I think Zillow is too high, but of course I'd be happy if it's really worth that much! It's difficult to compare to other properties since the complex is limited to seniors and is in a rural area.

My mother bought this condo new in 2004 for $119,900. Between 2004 and 2017 when my mother passed away, sale prices of similar units in the complex declined considerably. In 2017, a realtor recommended a listing price of $79,900. Since 2017, prices in the area have increased considerably but as far as I know only 1 unit in this complex has been sold during that time: 997 SqFt 2 bedroom unit with 2 car garage sold for $125,000 in 2018. Mine is a 707 Sqft 1 bedroom unit with 1 car garage. The property tax bill for 2019 says the total established fair market value is $89,200, so very close in price per SqFt to the property sold in 2018.

Madison, Wisconsin

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