How to Sell to your Tenants

[Ensign1999]

I'm considering selling one of my rental properties to my current tenants in hopes of getting a better return from the proceeds in another investment vehicle.  To make the most out of this transaction, the costs associated with the sale need to be kept at a minimum.

Has anyone sold to a tenant and how do you go about keeping costs low?  Not having to involve real estate agents (hopefully) helps a lot.  How did you go about writing the contract, and setting up the closing.  The property is located in MD.

Any help is appreciated

[J Boogie]

The No Nonsense Landlord has written about this, but I believe he has a license so you might not be able to do it exactly how he does it.  His blog is really helpful though.

[fishnfool]

A local attorney that does real estate transactions could write up your contract and then you would go through a local title company to follow through with completion of said contract.

No need for a realtor but I highly recommend using the attorney to be sure your contract covers everything. That is the most important step with your transaction and it really shouldn't cost much.

[Ensign1999]

Thank you for the feedback...I was hoping it was that simple, but I wanted to make sure there were no little things I might have been missing.

[alme]

We purchased a triplex from our previous landlord. We didn't use realtors, which kept costs down. But both sides had a lawyer, and we used a local title company for the closing. It was pretty simple and cost-effective.

[NoNonsenseLandlord]

The No Nonsense Landlord has written about this, but I believe he has a license so you might not be able to do it exactly how he does it.  His blog is really helpful though.

Thank you!!

I have a RE license, so getting a purchase agreement is easy.  You can buy one at many places too, or have a realtor get you one.  Then, just submit it to a title company.  They will take it from there.