Asking to buy the house you are renting? - Page 2

Mindy D · ‎05-23-2010

@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?

Before you approach the owner you need to find out what a comparable home would sell for on the market today. You can call two different agents from different brokers and say you are interested in buying in the neighborhood and you’d like a list of recent sales. Don’t mention you are interested in buying your home, but you can say “how much would a house like the one I’m renting now be expected to sell for.” The agents will check for you. Dont obligate yourself to the agents. Don’t tell them you are thinking of making an offer to the owner of your rental. You can also check home sales and neighborhood estimated prices at real estate websites. Just put in the address and you’ll get some estimates of the prices. Ask the owner if he is willing to sell the property. Do not make an offer. See what he says about selling. He might be motivated to sell if the price was right. He'd be saving the 6% he would pay if he listed the home for sale. He might not be interested in selling because he makes income from the renting of the property. That’s probably why he owns the house. You might be able to find the same model home for sale in the area if your owner does not want to sell.

Mindy D · ‎05-23-2010

@RollTide2008 wrote:
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.

You forgot that the owner could possibly own thie house just for the purpose of the income he draws from the house. Selling, if this is the case, would undermine his whole purpose for renting and owning.

RollTide2008 · ‎02-14-2017

@MindyD, I didn’t forget that at all. Of course, he would be obligated to accept the offer. That wasn’t the question. The question was how I’d go about asking.

PinkyPetunia · ‎03-09-2010

Compose a letter or email asking if the owner has any interest in selling the property to you in a cash transaction. See what the response is. Let the owner name the price he is asking.

Warrior2022 · ‎05-31-2018

@Tinkrbl44 wrote:
@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?

Because we just moved back to the area and weren't sure where we wanted to be after being gone for 3 years.

KailaS · ‎03-09-2010

You never will know unless you ask. Good luck to you.

NicksmomESQ · ‎08-19-2014

If you are interested then ask. I too own property.I sold one a few years ago. The tenant wanted to buy it but wanted to pay significantly under market value.I told him I needed more money & he responded by saying he was a good tenant & deserved a good deal.

I advised the tenant that I would give him a discount equal to what I’d pay a real estate agent.I advised him that I was running a business & couldn’t take the loss.

I ended up selling the house for a lot more than market value.A man wanted the house because of it’s location. He had the property rezoned, tore down the building & built a business.

If you are willing to pay a fair price the landlord may sell you the house.Good luck!!

kitty60 · ‎03-13-2010

I have rentals and if a tenant were interested I would prefer they just approach me. If you know what you are willing to pay I would tell them that but as others have stated you should be willing to pay comparable to the market value. I would be open to a slight discount because I would not have to go througt he time and expense of cleaning up and staging the property to attract a buyer. You never know until you ask.