Home Selling in Natomas Park>Question Details

Natomaspark, Home Seller in Natomas Park, Sacram...

how much impact does having a (cooperative)tenant in your home affect the chances of selling it?

Asked by Natomaspark, Natomas Park, Sacramento, CA Sun Mar 6, 2011

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Natomas...

We manage several properties as well as handle sales. The only properties I want "occupied" would be an investment type of property such as a Duplex or an Apartment Building because we know that most of the time these will be purchased by an investor. Many times in these cases an investor will make an offer on the property "subject to" an interior inspection.

My opinion changes "big time" to quote a former Vice President on the sale of a Single Family Dwelling

My most recent experience was of a tenant that "dictated" to us when we could show it and even restricted us from taking interior photos. We were allowed to show it on 3 specific days only and never on Sunday. Rather than fight it, the owner just gave them a notice that we weren't going to renew their lease.

During these two months when the tenants lived there, I can't tell you how many times Buyers wanted to see the property but were not able to get in. T

As soon as they moved out... guess what happened...? The house had lots of showings and is a Pending Sale now.

So my vote is to get rid of the tenants...and then list your place for sale.

I hope this helps.

Make it a great day...!
1 vote Thank Flag Link Mon Mar 7, 2011
Ed, manages several properties as well as handle sales in this area.
Therefore, his experience, represents the best response!
0 votes Thank Flag Link Wed Mar 9, 2011
If the write up just says tenant call for appt./ restricted hours: Very weak.
If it is Call Lock box, if no answer, go and show. Okay;

Vacant and clean with lockbox is easiest to show and agents can add these to a tour on the fly...

You can't beat vacant for availability...

When I have an investor, I want the rent/ lease information detailed on the MLS data sheet. I need to know what the monthly rent is before I show it. If it is not on the MLS sheet, I should just assume that it is either way below market or not being collected.
0 votes Thank Flag Link Mon Mar 7, 2011
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
Contact
Natomaspark Home Seller,

How cooperative? Cooperative to me is you will do whatever it takes to assist the homeowner in sellling the home. Show the house any time until it gets dark, keep it cleaned inside and out, always smelling fresh, repair anything that YOU may have damaged or bring any repair items to the homeowner attention.

They may say, "Oh, yes we will cooperate". They end up changing their minds, tell you to come the next day. Most buyers will not come back to see it. Buyers don't like tenants and homeowner's following them through the house, they want to walk through it themselves and feel the space.

I went to this one house a year ago with a tenant occupied that accomadated the call to show the property. Welcomed us in, but the clutter was wall to wall overwhelming in this beautiful home. That home is still on the market today. The home is a short sale. The owner may or may not be still collecting rents, but come on get rid of the renter and sell house vacant. So, is that rent money more important than selling your home at the top market vaule (use a stager) or having to reduce it because your renter decided today was a good day to show it and tomorrow not such a good time for the dog.

So Natomaspark homeowner, in my opinion that's the impact of a "cooperative" tenant.

Take care & Happy home selling.

http://www.facebook.com/sacramentorealestate2
0 votes Thank Flag Link Sun Mar 6, 2011
It depends on the tenant, are the home, are they clean? It will have an impact and it can be positive or negative.
0 votes Thank Flag Link Sun Mar 6, 2011
Hello,

We manage many rental homes (and also sell) in the Natomas Park area, and there are advantages and disadvantages in selling a home with a tenant. The big advantage is that you can market the home with a tenant in place to investors, as long as the tenant is willing to rent and renew the lease with the new buyer. There are many investors coming from the bay area looking for great income properties. You must explain to the new buyers that tenants are not allowed to use the clubhouse as amenities, nor the buyers as well if they buying it as an income property. The only time the buyers can use the clubhouse is when they are actual residents of the property.

The disadvantage is that you cannot control the cleanliness of the rental home when showing the property, and is shown by appointment only, which limits the availability of showing the home. Make sure that the move-out date of the tenant coincides with the move-in of the new buyer.

Mani del Rosario
Cornerstone Property Management
0 votes Thank Flag Link Sun Mar 6, 2011
Hello,

It will reduce the amount of Buyers that might become interested in your property and it makes showing the home more difficult if there is a Tenant. However, it will be easier to sell the leased home to an investor with a Tenant in place provided that the rent is comparable to others in your area.
Web Reference: http://www.buyvegasnow.com
0 votes Thank Flag Link Sun Mar 6, 2011
Enormous.

If a tenant does not cooperate, it kills the sale.

Agents know that if a listing says to make an appointment with the tenant and there is no lockbox, the tenant may or may not be home at the appointed time, so many agents don't even bother to make an appointment to show a tenant occupied home.

Elizabeth Weintraub
Broker-Associate #00697006
Lyon Real Estate
0 votes Thank Flag Link Sun Mar 6, 2011
I agree with Ute, the only drawback I see is not being able to show the property at convenient times for the clients. However, this will NOT make a big difference in the sale of your property as others have mentioned. Good luck.
0 votes Thank Flag Link Sun Mar 6, 2011
Lisa and Michelle are both correct that having a cooperative tenant for showings is extremely important. You will also want to discuss move out dates with your tenants. They will need to know when they are expected to be out of the home. The condition that the home needs to be in when they leave. The return of deposit money and other associated costs need to be discussed.

Alternatively, the new owner may be an investor and want to keep the tenants. This would be another discussion to have with both purchaser and tenants.

It is important to be up front and kind with your tenants, as you don't want them refusing to move out, leaving the home in poor condition, or not allowing showings. Things can go south, even when you thought they were great, if all aspects of the sale aren't handled in a courteous, conscientious manner.

Good luck!
0 votes Thank Flag Link Sun Mar 6, 2011
As long as the tenant makes it easy to show the property and there is assurance that the tenant will move out, chances are that the impact of having a tenant is very little. There wil always be some agents who may not want to show a tenant occupied, but I don't think it's a big concern. I would, however, recommend that you enter into a written agreement with the tenant about how showings will be handled as tenants have rights under the law that pertain to notice and entry for the purpose of showing the property to prospective buyers and if you deviate from those procedures, you want to make sure that it's in writing so that there is no dispute about whether you followed the proper procedure. I wrote a blog about proper procedures a while back http://actvra.in/6jY Even with a cooperative tenant, it's a good idea to put things in writing.
I hope this helps.
0 votes Thank Flag Link Sun Mar 6, 2011
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
Contact
Having a cooperative tenant is important when trying to sell your home. This is because you may miss out on the majority of home showings if buyers and their agents are not able to access the property. It may be helpful if you are able to setup a schedule with the tenant in advance. For example, your Realtor can list on the MLS that showings are only possible on Mondays, Wednesdays and Fridays from noon until 6:00, and please call tenant for an appointment. That way agents know in advance when it is even a possibility to see the home so they won't get frustrated trying to show a home on Tuesdays.
Web Reference: http://www.lisajonsson.com
0 votes Thank Flag Link Sun Mar 6, 2011
Buyers love to see homes that are maintained, clean, and some with furnishings are a plus too.

If the home is kept clean, landscaping done weekly, and availability is fairly open..You will have no problem selling the home.

You may want to give the renter a discount on their rent or some kind of incentive if they uphold their portion of the agreement. Making your home available at all hours of the day, weekend, and evening is no small task.

Good luck with your home sale!
0 votes Thank Flag Link Sun Mar 6, 2011
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