Real Estate Community Forum

I have property that I rent out. Now that I am getting older, the work and maintenance involved with owning a home is getting too costly for me. I decided it was time to sell the house. I first asked my current tenant if he would be interested in buying my home that he is renting out of. I gave him a price and he quickly agreed to it and is now in the process of contacting his attorney to make the sale final. My concern is I am wondering if I should have first put the home on the market to see if I could have gotten a higher price. I offered the home to my tenant based on the assesed value of the home from the taxes. Maybe if I had an agent put the home on the market, I could have gotten a much higher price. I am begining to resent giving the house to my tenant. What should I do? Can I stop the sale of the house? Should I talk with my tenant and ask for a higher price? What do you think?

In my opinion I think you should let your tenant buy the house at the agreed upon price. The reason for this is, if you go with an agent to sell your home, you must pay a commission to the agent. Next, the housing market is not looking good for those who are selling their home. You might not find a buyer for a very long time. You also have to remember, if you sell your house, the person interested in our home will want an inspection. If they find anything wrong with the house, they will negotiate a lower price. Finally, keep in mind when putting your home on the market you will be spending money to make the house sellable. This includes painting the inside rooms, adding new carpet, or remodeling the bathroom. In the end, you might be spending more than you expected. Hence, you probably saved yourself the extra time and money by offering the home to the tenant. I strongly recommend keeping things the way it is and be happy you have a quick sale.

All contracts for the purpose of selling real property must be in writing. Therefore, from a legal perspective you do not have to move forward with the transaction.

Notwithstanding the above, what is your financial situation? How quickly do you want to get out? Generally speaking utilizing the tax assessor's value for your home is good starting point, however (depending upon the market/economy) the amount is lower than the actual market value.

You need to get a comparative market analysis (appraisal) to determine the correct value of the home.

You then need to find out after looking at all the costs, time ,etc.of your situation....if selling for a higher amount would be more profitable and outweigh the initial agreement you had with your tenant. Only you can answer that question as in many instances the issue is not only money.

Hope this helps.

Good Luck