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Trulia Charl…, Other/Just Looking in Charlotte, NC

How do you sell with sitting tenants?

Asked by Trulia Charlotte, Charlotte, NC Fri Apr 26, 2013

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Irina Karan’s answer
As long as the win-win situation is created for the seller and the buyer - the property will be sold
successfully. If the tenants feel used - they will stop cooperating and the property will take MUCH longer to sell, and it will sell for less.

That's why it is important to know what is allowed in your state re. the amount of showings.
It is also important to know your tenants schedule.

Some tenants are super neat, while others are...less so.
I know that some landlords offer rewards to tenants - to have them clean/spruce the place up.
From lowering the rent amount (a little), to paying them per showing, to giving a present prior to closing (like a TV set). It also helps if all previous requests by tenants (to fix that fridge etc.) were
satisfied in a timely manner.

There are 2 ways of dealing with the tenants - they can stay (if they have a lease or their stay is agreeable to the buyer), or they go (if they live month to month or the tenants just want to move out).
In they stay, the rent gets prorated and the escrow money passes to the new owner.
If they go, then their escrowed security funds are given back to them (after checking the place out).
The rent is also prorated accordingly.

Sometimes, if your area's turn around is quick, it makes sense to sell the place as a vacant property.
Then, you can show it all the time, without the tenant's permission, and, you can sell for more.
That depends on how your lease situation is at this moment.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Thu May 2, 2013
Adding a clause to rental agreements with detail regarding future sale of the premises may help. I've never seen or read a rental agreement that incorporates this important aspect of ownership. Makes sense to me!
0 votes Thank Flag Link Thu Jul 18, 2013
Selling a home with sitting tenants is not the easiest thing to do. In order to properly sell a home with sitting tenants certain boundaries and expectations have to be set up front with the seller and the tenant. I generally ask for a meetign of the tenant, home owner and myself so we can sit down together and discuss and go over how this is going to work. This way there is no confusion as to what to expect and he said she said scenario.

There are two ways to sell a home with tenats sitting in there. One si to actively market it as if that was the home owners and request all the showings be scheduled by appointmentwith at least 24 hour notice. if this is stated upfront and the seller and tenat agree then they are nto allowed to tun down a showing outside of a medical issue or emergency. The tenant isaware that they must keep th house in show ready condition also.

The second way si to make the home available for showings only after there is an agreemnet in numbers so as to not disturb the tenant...This is very difficult and hard to sell and usually only works when the price is extremely cheap and/or the deal si to good to pass up.

Personally i prefer not to sell with a tenant in place since I have found they do not neccessarily make it very easy to show and do not have the home presentable as the actual home owner would. You generally are better off waitign and selling the home after the tenant moves out.

Dave diCecco
Realtor/Broker
Coldwell Banker United
Cell:704-519-7895
ddicecco@cbunited.com
http://www.davedicecco.com
0 votes Thank Flag Link Sat Apr 27, 2013
Good evening!

Unfortunately this process could get a bit sticky. You as the buyer can sell your anytime, regardless if there is a tenant in the property or not. The problem arises on the buyer side of things.

In the state of North Carolina, the lease transfers with the property, and whoever you sell it to must honor the lease. Now, if it is a month to month lease, it will be easier to get the tenant out with proper notice. If it is a year to year lease, the process could become more lengthy.

It works out perfect if your home is bought by an investor as they don't need to do any rent marketing, etc; but if a lot of owner occupants look at it, they may be turned away by the legality and wait time of the lease.

That being said, these homes are listed and do sell very frequently. If you have any questions specifically, feel free to contact me directly!

Michael Bowman
Benham Real Estate Group
704-490-5644
Mbowman@benhamrealestate.com
0 votes Thank Flag Link Fri Apr 26, 2013
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