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I bought my condo through a rental listing. It was the high floor and view I desired. Being able to cut out the middleman was the clincher. He had just finished painting it between tenants, and his yield wasn't great. High rise condos are more like a commodity, and easier to establish a fair price.
For all the realtors and agents out there, do you have any experience or stories on making sales offers on houses listed as rentals? Any luck with getting owners to sell? Did the sale offer have to be "extra sweet" to get the owner to give up the potential of rental income?
Every owner will have a different POV on this question. Some would be happy to get out of the landlord business while others depend on the income, I'm mostly in that second group though losing one rental wouldn't hurt me. I know you asked for agents experience but here's my experience and reasoning as an owner.
I get offers constantly, for me I have a number to hit on every property in order to sell it (my investment either already returned or what hasn't been returned rolled into the sale price, plus any taxes I will owe by selling, plus 8 years of rental income) but of the real offers I've received no buyer has come close. I'm a hard no if the "offer" is from an agent who claims to have a buyer lined up, these aren't real offers. After taxes and such it just isn't normally worth it to sell, the offer would have to be decently above market and no commissions (at least I'm not paying them anyway) and that just doesn't make sense for a buyer.
On my oldest properties my investment has been returned. The hurdle there is the taxes and rental income though. I've got a property that I purchased in 2011 where I've gotten most of my investment out of it and now I cash flow $975 a month on it. That alone is $93.6k I need to cash out after taxes to consider selling it. The market price on it is somewhere between $230k-$250k and I owe $125k on it which only leaves at most $25k for taxes. Then consider that my interest rate on it is 4%, with current rates finding a good replacement rental is nearly impossible.
I think just about all property owners would be happy if you came to them with a number (while the property was on the market, looking for new tenants).
Why are owners distrustful of agents? If I saw a rental I was interested in, I would run it by my agent for them to present the offer or make the inquiry.
Why are owners distrustful of agents? If I saw a rental I was interested in, I would run it by my agent for them to present the offer or make the inquiry.
Read what the owners of rentals posted above. Selling may or may not be to their financial advantage. Given that an agent's commission is usually paid for by the seller that cuts into the bottom line, even if the fee were reduced.
If you are prepared to pay the commission, than that is a different.
Read what the owners of rentals posted above. Selling may or may not be to their financial advantage. Given that an agent's commission is usually paid for by the seller that cuts into the bottom line, even if the fee were reduced.
If you are prepared to pay the commission, than that is a different.
Why should I pay for anything outside the bounds of a normal sale? If we agree on a price, standard fees and such would apply. I would never try to buy a house without an agent, proper inspections, etc. Your house isn't that special that I would throw out all norms.
For all the realtors and agents out there, do you have any experience or stories on making sales offers on houses listed as rentals? Any luck with getting owners to sell? Did the sale offer have to be "extra sweet" to get the owner to give up the potential of rental income?
I have a property management company and several of our investor owners keep the homes on the market while we rent them. These are short term vacation beach front homes and so I have to work around showing times for potential buyers etc. That's the agreement we have with those owners, and it works just fine. Wouldn't be happy for my income if I lost a home to a sale, but I'd certainly approach the new owner to inquire if I could rent the home for them as well.
Why should I pay for anything outside the bounds of a normal sale? If we agree on a price, standard fees and such would apply. I would never try to buy a house without an agent, proper inspections, etc. Your house isn't that special that I would throw out all norms.
If you’re trying to buy an asset that isn’t on the market- you’ll need to convince the owner to sell, money is how you do that.
As posted above, owners of rentals in hot markets get tons of solicitations for sale at below market pricing. Sending letters & cold-calling landlords (hoping for a desperate or worn-out landlord) is a full-time business for many agents, so you need $$$ if you really want a property.
Think about it from the landlord’s perspective- if the property is rented & producing $xxx of net income every month & selling it just gets you a big tax bill & an end to that income, why would you sell?
Why are owners distrustful of agents? If I saw a rental I was interested in, I would run it by my agent for them to present the offer or make the inquiry.
Go ahead and ignore advice. Maybe your agent can find you something. Anything is possible.
I get constant contacts from agents who tell me they have a buyer for my house. I tell them I will give them a one party listing, just for the buyer they have right now.
Then they all just go away. They don't have a buyer lined up, they are just trying to con me into giving them a 12 month listing. They are lying to me, hoping to trick me. So, if your agent contacts me and says they have a buyer for my property, I'm not going to respond to them because they sound just like every other lying agent. I don't know that they are the one and only agent out of 5,600 agents who actually does have a buyer. None of the other agents do and they are all claiming the same thing.
Why are owners distrustful of agents? If I saw a rental I was interested in, I would run it by my agent for them to present the offer or make the inquiry.
It’s not that owners are distrustful. Most don’t see the need to give 6% of their money to one or two agents especially if you’re the one who is chasing them to buy the property. You can use a agent all day long. Just don’t expect me to pay the commission for the agent.
Quote:
Originally Posted by charlygal
Why should I pay for anything outside the bounds of a normal sale? If we agree on a price, standard fees and such would apply. I would never try to buy a house without an agent, proper inspections, etc. Your house isn't that special that I would throw out all norms.
I have no issue paying for whatever I am required to pay by law as a seller to make a sale. You can give me a offer request with whatever conditions you want. If the requests are reasonable and we c9me to a agreement and I want to sell that’s fine. For the most part for me to sell would be financially cost prohibitive for me. There is no reason for me to sell. I would lose money selling,
I can tell you that I get offers for purchasing our rentals at least once a month. More so when one goes up vacant and it’s a for rent listing.
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