Author Topic: Landlord offered to sell us the place  (Read 3910 times)

dailycycle

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Landlord offered to sell us the place
« on: July 13, 2013, 05:30:10 PM »
I'm thinking of taking my landlord up on his offer to sell his house to us before listing it.  I've looked into what else is on the market both for purchase and rent, and this seems like the best option. 

My question is: given I know which house I want to buy, do I still need a real estate agent?  Or would an agent be willing to work with me for a flat fee rather than commission.  The house is about 800k (median for the area), so that's a big commission to pay for a lot less work than they would normally do. 

arebelspy

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Re: Landlord offered to sell us the place
« Reply #1 on: July 13, 2013, 05:34:23 PM »
Have you ever purchased a house before?

The commission comes out of the seller's pocket, not yours, so if you don't use one, definitely negotiate a discounted price based on that fact.
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dailycycle

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Re: Landlord offered to sell us the place
« Reply #2 on: July 14, 2013, 10:51:57 AM »
No, I always preferred the flexibility of renting.  With a kid now, that's not as appealing.  And having the landlord kick us out to sell the place is making owning much more attractive.  I'm not thrilled at house prices in the area, but renting is expensive as well.

I think I'll get help from a relative who is a non-local real estate agent in the same state on the offer type stuff and try to find comps to sort out what's a decent price.  Thanks.

arebelspy

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Re: Landlord offered to sell us the place
« Reply #3 on: July 14, 2013, 11:22:45 AM »
Great.  Feel free to post any questions you have along the way!

Make sure to get a good home inspector, even though you've been living there.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
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Villanelle

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Re: Landlord offered to sell us the place
« Reply #4 on: July 14, 2013, 12:35:37 PM »
I bought a house from my father, essentially (it was part of his inheritance) and we paid a realtor a small fee to do all the paperwork, assist with the title search, and file the lien (it was financed by my father, but with official loan terms and we both wanted the safety and formality of a lien).  It was a decade ago so I don't remember how much, but it was *way* less than we (or him, really, as the seller) would have had to pay an agent.  He passed that saving son to me, and you should request that your LL do the same.  If 6% is a standard commission in your area, then ask your LL to knock 5% off the cost, minus the fees for the paperwork, etc.  Then you both come out ahead, though you slightly more than him (assuming the fees are less than 1%, which would likely be the case unless you live in a very cheap housing market). 

markstache

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Re: Landlord offered to sell us the place
« Reply #5 on: July 14, 2013, 12:42:13 PM »
I'm thinking of taking my landlord up on his offer to sell his house to us before listing it.  I've looked into what else is on the market both for purchase and rent, and this seems like the best option. 

My question is: given I know which house I want to buy, do I still need a real estate agent?  Or would an agent be willing to work with me for a flat fee rather than commission.  The house is about 800k (median for the area), so that's a big commission to pay for a lot less work than they would normally do.

You do not need an agent. If he has not engaged an agent, neither of you needs one. Instead, I suggest you both get a real estate lawyer. A real estate lawyer is often a good thing to have even if you have an agent. You could perhaps jointly engage a lawyer to really cut costs if the basics of the agreement are well established.

Daleth

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Re: Landlord offered to sell us the place
« Reply #6 on: July 19, 2013, 06:37:40 PM »
I'm thinking of taking my landlord up on his offer to sell his house to us before listing it.  I've looked into what else is on the market both for purchase and rent, and this seems like the best option. 

My question is: given I know which house I want to buy, do I still need a real estate agent?  Or would an agent be willing to work with me for a flat fee rather than commission.  The house is about 800k (median for the area), so that's a big commission to pay for a lot less work than they would normally do.

If you don't use a realtor, then do use a real estate lawyer. A normal one should tell you up front, after you've discussed what you want her to do (review purchase agreement, advise on negotiations, do title search or refer you to title company, get title insurance, handle closing or refer you to a company that does that, yada) what she charges for this service--as in "it will cost $1200" and then that's what it actually costs. You can also negotiate a much lower commission from a realtor for this; shop it around to different realtors.