Of course, not having to move is a top motivator. But if you're concerned that you're choosing convenience over a poor financial decision. Here are some reasons you might consider buying your rental.
First off, our firm frequently represents both landlords selling to tenants and tenants buying from landlords. So this is a topic we know well.
Last week, I blogged about landlords selling to their tenants. Today, I'll focus on reasons why you, the tenant might want to buy your rented home.
1. It can make buying a place easier
Beyond not having to move, buying from your landlord can simplify your home search. You don't have to spend time and energy on open houses, making offers, bidding wars, deals that fall apart, and the like.
2. You already know the property
Most buyers make decisions based on a few walkthroughs and disclosures. As a tenant, you have firsthand experience. You know the layout, the quirks, the building, the parking, the neighbors, and the realities of living there day to day.3. There may be financial advantages
You might have room to negotiate if the landlord avoids broker commissions, staging costs, photography, and marketing expenses.
Some tenant-buyers may be able to negotiate:
- Less earnest money
- More flexible timing
- Owner financing (i.e. rent-to-own) in some situations
4. Buying your current home may be less intimidating.
It can feel like a natural next step instead of a giant leap. But convenience alone is not a reason to buy. This is still a major financial decision, and the same legal and financial due diligence still applies.
Take note: For some tenant-buyers, the process can feel informal. So they let their guard down when they shouldn't. That's why it's important to have experienced legal representation from the start—even before you make an offer.
Final thoughts
Some landlord-to-tenant sales are good opportunities. Some are simply convenient. Make sure your situation is the former. And that you approach it with an experienced closing attorney at your side.
Next blog, I'll write about HOW to buy from your landlord.
Want to learn more? Read these FAQs tenant-buyers ask about earnest money.
If you have any questions about landlord-tenant transactions, schedule a call with me (Mike). I'm happy to help.