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MarciaZ

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Posts: 1
Reply with quote  #1 
Hello, I am new to this forum and hope that you all may have some good advise.

I am considering to sell my rental property.  My current tenant has lived there for about 7 years.  She pay rent on time and no other issues.  

Would it be a good idea for me to offer her the opportunity to buy the property as is or should I just give her notice and repaint the unit and finish the flooring and get top dollar including realtor fees?

What are the pros and cons of each approach?  

thank you in advance!
LLinVA

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Posts: 547
Reply with quote  #2 
I assume the goal is to make the most money, unless it's VERY close in which case you wouldn't mind going with the tenant. Correct?

Do you think the tenant can buy a home right now? 

I wouldn't treat the tenant any better than any other potential buyer, they're just first in line. I would use a realtor either way. Best case scenario, the tenant is ready and willing to buy and a realtor lets you know the actual value as is. Assuming the tenant isn't ready to buy, you'll be that much further along and the realtor can immediately let you know what improvements would be worth doing and how much they would increase the selling price. 
AccidentalRental

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Posts: 207
Reply with quote  #3 
Are you comfortable selling FSBO?  If so then you can save a lot of commission if you sell it directly to your tenant.  Have they expressed interest in buying the property?  Do you know what it's worth?  Do they have the down payment? etc.  The answers to these questions will tell you what you need to know.
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sandouglas

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Posts: 10
Reply with quote  #4 

There are few pros to sell your home to the tenants, such as-

  1. You can save on agent fees.
  2. There will be a fast and transparent process.
  3. No need to deal with the property manager.

In the process of selling your home to the tenant, first, calculate your home value using a home value estimator. Thereafter, inform your tenant about the plan with the estimated price.

TheWeilLawGroup

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Posts: 2
Reply with quote  #5 
Not a bad idea, but you will want to make sure that all the paperwork is nice and legal. You will need to execute a contract for deed and record that, as well as make provisions for recourse for non-payment, and how equity is earned. 

If you are in Florida, I would be happy to help: http://www.weilfl.com
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