All Forum Posts by: Gwendolen Rowe

Thank you @Account Closed! I am leaning towards offering them something like this.

If I do owner financing, I'm thinking it would be necessary to pay for an appraisal first because the buyers would need that proof of the price being "correct" when they go to refinance. Does that sound right?

@Eamonn McElroy You are absolutely right about it being a maze! As I found out by continuing to use my home town tax preparer after moving overseas!

My main concern is filing correctly and following the rules; trying to figure out how to do that has been a constant thorn in my side the past several years.

Thank you @Steven Hamilton II and @Lance Lvovsky for your replies!

Thank you, @Aaron K.! Is this a usual service that is offered for a fee? Without an expectation of the property being listed with that agent?

@Paul Haviland all great input, than you! I'm aware of how seasonal the market is and that is also concern for me.

The rent is $820 a month. I did not increase the rent when renewing their lease in 2019 since they agreed to handle the maintenance so that I didn't need to pay for property management. 

Their current lease expires this month and they are anxious to know that they can stay, so I feel like giving them an extension until October is the right thing to do even though a risk for me of having to put it on the market at a bad time of year.

@Chase Binnie and @John Teachout for some reason I could not tag you in my replies!

@Aaron K. Sorry if this is a stupid question, but can tell me what BPO stands for?

@John Teachout, I do think they would be fine as far as payments with owner financing. They are retired with secure income from social security. They cannot qualify for a mortgage until October because they have a past bankruptcy (from medical expenses) still on their record. 

They paid a whole year's rent in advance when they moved in 2 years ago and have always paid the monthly rent on time, by automatic bank transfer since then. They are also extremely helpful in taking care of maintenance issues themselves. They even opted to buy a new fridge themselves when the old one quit.

I don't want to sell it out from under them, or cause them stress by listing it for sale. Since I'm familiar with the sales history of these units since 2004, I believe that selling it to them without putting it on the market will be the best situation for both parties.

Thank you @Chase Binnie! I sent you a message.

I was assuming I would use an attorney for contracts and anything else necessary. Can you or others explain what the differences might be between having an attorney vs a real estate agent handle this?

I do own the property outright and have been researching the pros and cons of offering them owner financing, but am concerned this may be a little too advanced for me as a first time seller.

It would be an advantage to me to get a down payment sooner than waiting until October, as I have some high interest debt I need to pay off. This is my primary reason for wanting to sell; the tenants would actually prefer to keep renting for another year.

Extending their lease until October when they will qualify for a mortgage seems simpler than figuring out an owner financing deal. I'm thinking about offering them the option to purchase at a particular price in October in exchange for them paying any maintenance expenses that come up before then. I would trust them to do this as they have already been handling all the small maintenance themselves and organizing professional repairs when necessary, which we deduct from rent.

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.