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Valued Contributor
Posts: 744
Registered: ‎05-31-2018

Asking to buy the house you are renting?

I have seen posts from landlords here, so I have a question.  Have you ever sold to a tenant?  How would one ask about buying?  Would you jack up the selling price?

Honored Contributor
Posts: 9,592
Registered: ‎03-09-2010

Re: Asking to buy the house you are renting?


@Warrior2022 wrote:

I have seen posts from landlords here, so I have a question.  Have you ever sold to a tenant?  How would one ask about buying?  Would you jack up the selling price?


As a landlord, this situation came up twice in the past for me.  In each case, the tenant wanted a great deal.  Would have sold it to them for a  bit under market value, but they wanted me to just give the properties to them. After they vacated, I did get market value or even more, in one case 

Esteemed Contributor
Posts: 5,511
Registered: ‎03-09-2010

Re: Asking to buy the house you are renting?

You can ask for a lease with option to buy. A portion of your rent paid would go to your downpayment. If you don't purchase you are typically out the $.

 

See what the home is valued at the county's website before you write an offer. Just know this is often the lowest appraisal.

Respected Contributor
Posts: 2,430
Registered: ‎03-11-2010

Re: Asking to buy the house you are renting?

yes, thought about it.  in my case both times, they wanted me to owner finance. which was a no.

it would also depend if i wanted to sell, or had been thinking about it.  

i have 3 rentals now which are about 100 miles away.  a PITA if you have to do any work on them or anything. 

keep in mind the tax ramifications as well. 

so if they could get financing, and i was in the market to sell. i would without a realtor, but with a attorney. 

fair market value. not cut a great deal. 

Esteemed Contributor
Posts: 7,322
Registered: ‎02-22-2015

Re: Asking to buy the house you are renting?

There was always a reason the tenant could not get a loan themselves. I was not willing to rent with an option to buy. Simply not good financial sense. That's a NO in my way of thinking.

When I've been ready to sell, I make the decision to suit in income taxes and other issues involved. I always enjoyed those deductions! The tenant doesn't make the decision for me.

Money screams; wealth whispers.
Valued Contributor
Posts: 744
Registered: ‎05-31-2018

Re: Asking to buy the house you are renting?


@BirkiLady wrote:

There was always a reason the tenant could not get a loan themselves. I was not willing to rent with an option to buy. Simply not good financial sense. That's a NO in my way of thinking.

When I've been ready to sell, I make the decision to suit in income taxes and other issues involved. I always enjoyed those deductions! The tenant doesn't make the decision for me.


We would not need a loan.  Cash deal.  We love this house so much.  It needs things like a screened porch.  How should one approach the owner?

Honored Contributor
Posts: 32,485
Registered: ‎03-10-2010

Re: Asking to buy the house you are renting?


@Warrior2022 wrote:

@BirkiLady wrote:

There was always a reason the tenant could not get a loan themselves. I was not willing to rent with an option to buy. Simply not good financial sense. That's a NO in my way of thinking.

When I've been ready to sell, I make the decision to suit in income taxes and other issues involved. I always enjoyed those deductions! The tenant doesn't make the decision for me.


We would not need a loan.  Cash deal.  We love this house so much.  It needs things like a screened porch.  How should one approach the owner?


@Warrior2022 Do you know the owner?  Just decide what you would be willing to pay and make an offer.  Don't lowball if you want the house.  Make it a far price and who knows! Every case is different.

Honored Contributor
Posts: 9,592
Registered: ‎03-09-2010

Re: Asking to buy the house you are renting?

@Warrior2022   Since you’re able to purchase the house with cash, that changes my earlier response.  I had been dealing with tenants who were often late in making rent payments, so I wasn’t seeing them as serious potential buyers.  

 

First off, look up the value of the property on a site like Zillow, but keep in mind...if the property hasn’t changed hands in many years and improvements have been made, that value may be too low.  If you’re comfortable approaching the owner directly with an offer, go ahead. 

 

Otherwise, contact a real estate agent who could negotiate a deal.

Respected Contributor
Posts: 4,223
Registered: ‎02-14-2017

Re: Asking to buy the house you are renting?

I rent because I got transferred here for work and absolutely hate this city. I have a high school freshmen and don’t plan on being here too much past June 2023. If I suddenly fall in love with Columbus, Ohio (doubtful), I’d ask my landlord if he was interested in selling for just under market value and I’d have funds secured before I did. I would expect to pay under market value because he wouldn’t have any work to do on the place first. He wouldn’t have to paint, spruce up the landscaping, or update anything. I’d expect a discount for that.
Honored Contributor
Posts: 39,562
Registered: ‎08-23-2010

Re: Asking to buy the house you are renting?


@Warrior2022 wrote:

I have seen posts from landlords here, so I have a question.  Have you ever sold to a tenant?  How would one ask about buying?  Would you jack up the selling price?


@Warrior2022 

 

Have you even talked  the owner to see if they are open to selling before writing a serious offer?   I have to ask ... if you are cash-rich, why are you renting?