You’re renting now, and you’re wondering if your landlord will sell the house you live in now to you. I mean you might already have a good relationship with them, and they may have even expressed interest in selling to you already, so it seems like a shoe-in, right?
Well, every real estate transaction is unique, and this type of deal happens often enough. So I want to throw a couple pointers out that may help you decide what route to go, in terms of how you can structure this type of transaction, and at the same time, offer some things you may want to consider.
A lot of rental owners, or landlords, are in a unique position to possibly be able to offer owner financing, and may even have enough experience in real estate to want to represent themselves in a transaction. But that doesn’t mean that you can’t get representation for yourself or finance it through a lender of your choosing, and I recommend that you do, especially if this will be your first home purchase and extra-specially if you are being offered owner-financing.
Here’s the thing; You will need a contract, and will need guidance on a fair market value and interest rate for however you decide to finance your purchase. You also need to make sure that the property has a free and clear title to be sold. Have you asked your landlord whether or not they are the only owner of the property? Maybe they recently went through a divorce, did they pay a settlement out to their spouse to retain sole ownership and has that other party been removed from the deed?
Also, if the landlord did all the work on the house, even everything seems to be in working order, you will want to do some inspections to make sure that all the p’s and q’s are accounted for. Electrical and plumbing, it’s hard to know if they’re up to date, if you’re not the one maintaining them. And that a/c unit out there may be getting serviced every year, but is it being serviced by a professional, and how long is it going to last after you buy the house?
Buying a house from a landlord is a great idea. You know the house, you know the neighborhood, you like living there, that’s why you want it. But wanting something, doesn’t equate to a good deal. You need people involved that know how to structure a purchase and get you the best deal you can get. And when I say, “get you the best deal,” I’m not talking just about the price. You want to lock in an interest rate that works for you with a payment plan that fits your budget for a house you know is live-in ready. You also want to know that when you buy the property some cousin of your landlord isn’t going to come knocking on your door in 6 months and tell you they own the land you live on. It doesn’t happen often, but it can happen.
I’m not telling you that your landlord has it out to get you, or that you should assume the worst. But this is where you hang your hat, and it’s where you intend to build a future. What I am saying is; make sure that you’ve done your homework. And again, if it is your first transaction, a REALTOR will be a big help along the way to make sure all the ducks are lining up like they’re supposed to.
Call me if you have any questions whatsoever, my info is in the description of all my videos. Have a great day, and good luck out there.