10-19-2007, 10:42 PM #1New real estate webmaster
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How Do I Sell Condo While Renter Lives There?
Please help me. I must "unload" this condo. It's caused me more headaches. I currently rent it ou. At some point in the near future, I want to put it on the market. I am currently paying mortgage and HOA on my owner-occupied home. The rental payment offsets the mortgage and HOA on the condo.
I'm in a bind because if I put the condo on the market after the current tenant's lease expires, and I don't get a new renter, I will not be able to make both mortgage/HOA payments without that rent-offset.
But I don't want to keep renting it, either. I want to be done with it once and for all. What shall I do?
It has depreciated considerably. I bought it for 155K and the comps now have it at 139K. I've had it on the market twice before and got very few bites. So when you give me advice, keep in mind that this condo is hard to sell. It's in perfect condition, but I guess there's too much competition.
I suggested to the Realtor who I bought it through, that my next renter be given very cheap rent, in exchange for the condition that during the new renter's tenancy, Realtors will be showing the place because it will be on the market during the tenancy. The renter would know this, and in exchange for this inconvenience, pay very low rent. The lease would also state that if someone buys it during the tenancy, the renter would have to vacate within 45 days.
My Realtor said this isn't the best idea, and rather, I should offer the condition to the current renters, and if the place sells before their tenancy is up, to give them a "credit" of $100. Or (my idea), I could lower their rent while it's on the market.
The problem with my Realtor's suggestion is that what if the place does not sell before the current tenant's lease is up? This then puts me back to the situation described in the first place: A vacant unit and the need to find a renter who is willing to allow Realtors to show it (at specified times, of course), and vacate with 45 days notice, in exchange for cheap rent.
It is not probable that the unit will sell before the current tenant's lease is up, based on history of getting few people interested in looking at it when it was previously on market.
I also planned on setting the sale price below market value, to increase odds that it will sell quickly. (I'll still come out ahead if I do this.)
The "rent to own" plan has crossed my mind, but how many months would it take me to find this kind of renter? And then meanwhile, I'd be making those mortgage/HOA payments, which I cannot afford.
THANKS FOR ANY ADVICE, and PLEASE send your expertise to my e-mail at:
Last edited by Elgee; 10-20-2007 at 01:14 PM.