I could use some help selling a house

Discussion in 'Teacher Time Out' started by engineerkyle, Jan 2, 2014.

  1. engineerkyle

    engineerkyle Companion

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    Jan 2, 2014

    Dear Friends

    I intend to sell the house I am currently renting out. The details regarding the sales plan are still sketchy. I hope that things will firm up after getting some responses here, and reviewing the ideas that come from the discussion.

    Background info;

    For several years, the house has been occupied by a couple of wonderful tenants who never complain, never call for trivial repairs and always pay $1,350.00 on time. Their lease ends in August.
    The house is a three bedroom brick ranch in a desirable neighborhood. The finances on it are very good. I owe 104K on the regular mortgage and 46K on a line of credit. The Zillow appraisal for the house is 175K, so after the sale, I figure I will erase the mortgage as well as the line of credit and pocket 20-25K. I would not undertake this sale except for the fact the 46K line of credit will come due in September of 2015. I don’t want to give the lenders any leverage so my plan is to sell out now, with plenty of time to spare on the line of credit due date.
    We are living in a second home we bought right after the bubble burst. We paid cash for it with the line of credit money.

    The Plan:

    I do not want to use a realtor for the sale. I will advertise on Craigslist (we got some great photos of the place), EBay and the LPA classified. Rather than an agent, I figure I will just hire a lawyer to make sure the paperwork is up to snuff.
    I think I will let the tenants “down easy”, telling them the house will be sold and their lease will not be renewed. I usually meet with them in March. That gives them 6 months to plan and prepare.

    Questions:

    Is the timing right for the tenants, should I tell them sooner or later, or much later?

    Can I arrange some kind of incentive for my renters so that they fully cooperate with the showings? Perhaps half off the rent from the closing date to the end of the lease?

    If we don’t close until after the lease has ended, won’t they need to go on a month to month lease?

    EBay, Craigslist? What other places are productive for listing?

    What kind of lawyer is best for this type of thing?

    In conclusion:

    I’m sure other questions and ideas will pop up here. And I want to invite all of you to add any other ideas or thoughts that might be helpful in this situation. Thanks so much for your consideration.

    Kyle
     
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  3. Upsadaisy

    Upsadaisy Moderator

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    Jan 2, 2014

    We sold our house once ourselves and used an attorney to draw up the paperwork. It worked well. He was a real-estate attorney (also did wills and such). I think 6 months is a fair amount of notice. It also gives the tenants time to consider purchasing it themselves. Would you consider a rent-to-purchase option for them? My sister and hubby are now going to list their house with an auctioneer. Of course, they'll have a reserve so they don't have to let it go for less than it is worth.
     
  4. swansong1

    swansong1 Virtuoso

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    Jan 2, 2014

    My first thought...do you think the tenants might want to buy it?

    My second thought...I would be very hesitant to post on craigs list...lots of horror stories...if you use an agent it offers you an extra layer of protection.

    Good luck with the sale!
     
  5. teacherintexas

    teacherintexas Maven

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    Jan 2, 2014

    We rented a house and the owner decided to sell five weeks before our lease was up. It was very inconsiderate of her to give us so little time to find a place, pack, and move out. Please give your tenants as much notice as possible. Thankfully, we also own a second home so we had somewhere to live while waiting on the closing of our new house.

    If you show the house while they are living there, give as much notice as possible. In our lease, the owner could not enter unless we had 24 hours notice and we were present. Thankfully, the owner of our rental was considerate in that and gave us more notice.

    Giving the renters a break in the rent would go a long way in building good will and helpfullness in making sure the property is prepped for showing.

    Depending on the market where you live, you might want to reconsider a realtor. Three homes we looked at that were for sale by owner are still on the market six months after we closed. But I think you can pay a fee to have your home show up on zillow and trulia. That would increase your exposure.
     
    Last edited: Jan 2, 2014
  6. engineerkyle

    engineerkyle Companion

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    Jan 4, 2014

    Thanks,

    I like the idea of using Trulia and Zillow. How does that work?

    I'm sure the tenants will consider buying. Not sure if they will. The trouble with 'rent to own" is that I'll need to pay off the 46k line of credit come September of 2015.

    I am surprised how many people have said to stay away from ebay/craigslist. What specifically can go wrong?
     
  7. Special-t

    Special-t Enthusiast

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    Jan 4, 2014

    Meeting with strangers to show the house can be very dangerous. And there could be people looking to scam; knowing you don't have an agent.
     
  8. engineerkyle

    engineerkyle Companion

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    Jul 13, 2014

    Hi All,

    The house has been listed for a month. The tenants did not want to buy. I earnestly tried FSBO for the first 30 days. I had a few calls and a few showings. The tenants surprised me; they did not want to go month to month indefinitely, instead, they found a new lease and did not renew with me. Their lease ends July 30th.

    A couple days ago I "bailed out" and hired a Realtor. I believe she will get it done.

    See my current projects at
    engineerkyle.com
     
  9. giraffe326

    giraffe326 Virtuoso

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    Jul 13, 2014

    Hopefully it will sell quickly! Things are moving quickly in my area. Plus I know someone in Flint Township that went under contract in 3 days (not sure what the offer was vs. asking price), and I know someone else in Livonia that went under contract in 1 day with a full price offer and no inspection.
     
  10. czacza

    czacza Multitudinous

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    Jul 13, 2014

    Good luck selling the house.

    Your railroad creations are awesome!:thumb:
     
  11. 3Sons

    3Sons Enthusiast

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    Jul 14, 2014

    I believe having a good realtor can be critical to selling a house. In my area, which is generally considered a seller's market, there are still houses that can sit on the market for years if priced or marketed badly at the outset. Then there are houses that sell in the first week. I suspect any area has such houses, and it's just a matter of how many there are.

    Sounds like it's a moot point now, but I'd agree six months is pretty good notice.
     
  12. swansong1

    swansong1 Virtuoso

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    Jul 14, 2014

    We are trying to sell our house in another town. The market there is not that good. We are working with our second real estate sales person and neither of them have done much to market or show the house. Very disappointing.
     
  13. engineerkyle

    engineerkyle Companion

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    Jul 19, 2014

    Thanks Caesar ,:thanks:

    I am very happy with Weebly, and my new site gets 50-150 hits a day.

    See my current projects at
    engineerkyle.com
     
  14. engineerkyle

    engineerkyle Companion

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    Jul 20, 2014

    Dear Swansong,

    I believe Realtors don't do that much after they list it. Your home data goes out on MLS, and every Realtor in the world gets to share it with their buyers.

    Hang in there, FLA

    See my current projects at
    engineerkyle.com
     
  15. engineerkyle

    engineerkyle Companion

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    Aug 23, 2014

    :mad:Still not sold

    I had to lower my expectations...

    Open house today and tomorrow.

    Kyle

    See my other projects at
    engineerkyle.com
     
  16. engineerkyle

    engineerkyle Companion

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    Sep 13, 2014

  17. smalltowngal

    smalltowngal Multitudinous

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    Sep 14, 2014

    Congrats!
     

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