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Author Topic: Better to Sell with or without Renters?  (Read 1596 times)

Offline MidasGoal

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Better to Sell with or without Renters?
« on: October 15, 2005, 10:40:22 pm »
I have a cleint that wants to sell her house but she wants to wait until the current lease ends next April (2006).  So she can ask the currents to move out.

She wants to wait until the house is vacant a do some minor repairs, then put it on the market.

She is in a bit if a time crunch because she has to renew the lease  by the end of November to cover April 2006 - March 2007, because the current renters are Section 8.  

She is renting for about $900 , but the market rent is about $1,200 for the house.  3Br/2Ba/1Car

She has not said anything to the current renter so I do not want to list the addres but Ican say the house is on Bodgers (yes that is the correct spelling it is Bodgers NOT Dodgers) in Ausin Tx.  78753

She wants to sell for about $120,000 but that is negotiable.  

I think it would be better to sell now while it is occopied that to wait until it is vacant and put it on the market.

I would appeciate any feedback, guidance and advice.

Thank you,

Paul

Offline TamiSpartan

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Re:Better to Sell with or without Renters?
« Reply #1 on: October 17, 2005, 06:08:59 pm »
Hi MidasGoal,

I see that no one has replied -- and I'm waiting for our gurus myself -- they have the best advice. But I always have my 2 cents to throw in LOL.

I've been in both situations as the owner trying to sell. One I HAD to evict the tenants (and I actually broke their lease due to failure to perform on their part) in order to sell the property. There was no way on earth I was going to get my price with them in place. They were physically abusive to each other and those missed punches ended up through my walls, windows and even the thermostat. BTW she was way more scary than he and she wanted me LOL -- and I don't mean to hurt. More as a girlfriend.

I've also sold with tenants in place. Very good tenants. The purchaser was looking for an opportunity and they were more than happy to honor the existing lease and buy the property. These tenants were paying the mortgage and it was a win-win situation for the new investor and the tenants (and me).

Are the current tenants devaluing the property and, on the other hand, do they bring value to the property? What is the market you are selling to? If you can get an investor to purchase the home with tenants in place -- at her asking price -- urge her to go for it (the rent hike is their problem). The worst that can happen is she gets her price.

As I read your post, she wants to evict at the end of the lease, add funds to the property and then expects a quick close. Sounds like a lot of work for you and her. Many Section 8 tenants are beyond savvy of the rental market -- she may not get them out as easily as she thinks. Perhaps her negotiating room would be the amount she expects to invest to get her asking price?

Good luck.


 

~Tami

 




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