Tenanted while selling?

Discussion in 'The Buying & Selling Process' started by ATANG, 7th Nov, 2016.

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  1. ATANG

    ATANG Well-Known Member

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    Is it wise to terminate or at least give notice to renter that you will be selling the house or just sell it as tenanted? Would tenancy reduce the potentials of good sale?
     
    Bryan Loughnan likes this.
  2. Bran

    Bran Well-Known Member

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    I tried selling mine with tenants. Was a disaster. Ended up taking it off the market and then just selling it to them. Definitely reduces the market to investors only.
     
  3. D.T.

    D.T. Specialist Property Manager Business Member

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  4. Agent30yrs.

    Agent30yrs. Well-Known Member

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    Vacate it and present it at its best !
     
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  5. ATANG

    ATANG Well-Known Member

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    So if the lease is until mid 2017, that means I just have to wait until then? Would be a cold winter market.... Also, I don't want to risk losing the tenant if its not sold with the price am happy with.
     
  6. Big Will

    Big Will Well-Known Member

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    Having it tenanted will mean it will appeal to someone who is an investor mainly, as other people want to move into their house asap.

    To get a balance of both is 2-3 months before the lease expires list the property for sale (or better yet ask the tenant if they want to buy it). Then you can either issue notice to vacate or you can sell it to an investor if the tenant would like to stay (find this out before taking to market). I found when you talk to a tenant and get their agreement that they will know if it is an investor that is purchasing or if not that you will get 60 days for settlement they are more accommodating with having an open house each week.

    Typically an agreement would be everyone through open for first inspection and for second inspection that the agent/you will try and get them through the open but it may require a private but you will give as much notice as possible and find out which days are the least suitable for them... E.g. maybe they are shift workers and work Sat->Wed so Mon->Wed isn't suitable but they can handle Thursday Friday.

    I wouldn't want to advertise a property for sale with a 1 year lease in place as I am cutting out the majority of the market which means I have less to work with and may or may not achieve the highest possible price. Bit of a tip investors (well true investors) want to pay as least as possible but a person buying to live in will want to pay as least as possible but they have emotions and may end up paying more.
     
    Perthguy likes this.
  7. Perthguy

    Perthguy Well-Known Member

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    I sold an IP with a tenant in place. This was investor interest, not owner occupier, so having a tenant was a plus. I had a couple of issues with the tenant at the start but we sorted it out and the rest of the sale went without issues. For an owner occupier, vacant possession is highly preferable.
     

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