Can you sell a home with a TENANT living in it?

By
Real Estate Broker/Owner with Godzyk Real Estate Services NH License 033394

Will this home ever sell? Let me introduce you to this seller. They had been relocated for work. They listed with a discount agent and headed South to their new job. Months went by and it did not sell. They could not afford the mortgage and paying rent in their new state. The agent talked them into a lease purchase. Years went by and no purchase. Now another year has gone by and still no purchase and now no rent. The seller needs this home gone.  

 

They were referred to me by a neighbor whose house i sold and then sold them a home in this neighborhood. The seller flew up to meet me and take me through the home. They have not seen the home in 4 years. What we saw was a mess.  

 

I am not sure how much effort was put into selling the home or finding a legitimate rent to own buyer. We were suppose to sit with the tenant after touring the home to see if they could or could not buy the home once and for all. The home smelled so bad we met on the picnic table out back.

 

After a short time it was obvious this tenant aka would be buyer, had no ability to buy now or then. The seller realized he got what he paid for in a discount agent that really did not know what they were doing. That in a haste to save money, he has cost himself 4 years and boat loads of money. 

 

NOW he hired me. What to do? What plan to take? and how we can move forward?

 

In most cases with a tenant occupied home, the question is will they allow us to show the home to potential buyers without killing any potential sale? In this case, it is best of the tenant is out before starting to show it. The condition of the home is deplorable. The tenant had no will to complete any cleaning or upkeep. 

 

We came up with a plan. That I would be hired to get the tenant out. To get the home prepared for sale. To find an AS IS buyer, most likely cash and get it sold quickly.

 

The seller headed back home. He was depressed but had hope for the first time in 4 years. I met with the tenant. They owed 3 months back rent. The seller said he did not count on collecting it, so use it as negotiations. With the sellers blessing, I told the tenant if they are out in 2 weeks, the seller will not collect any of the 3 months rent. If 3 weeks they will collect 1 month. If 4 weeks they will collect 2 months rent. Anything later they expect all the rent to be paid. The tenant said he could be out in a week. 

 

I left a CASE OF CONTRACTOR TRASH BAGS the tenants could pack up what they dont want, and they will remove. A week later they tenant moved out. They took most of the massive mess we saw a  week earlier. I face timed the seller and walked through.

 

I had already got estimates on a dumpster and labor for a clean out. A got an estimate for a basic cleaning if the interior. I got an estimate to do the lawn care. The seller thought everything was reasonable. The seller was pleased I had such resources.

 

I gave them a value AS IS and then gave them an estimate of repairs and what the home would be worth. They are out of money. They want to sell quick, so they wont make any repairs. They will seek a cash buyer without any contingencies. That is a challenge i accepted and will succeed in selling for them.  

 

 

The MOST IMPORTANT thing in real estate for me, is to provide great service. To stand out from the crowd by being there through each step of the buying or selling process. My message that I want to share in Real Estate, is that my philosophy is simple, to provide more personal and professional service to guide clients through each step of the buying or selling process. All Agents are not created equal and every buyer or seller should take the time to hire the BEST not just the biggest.

 

To CONTACT Scott Godzyk please call 603.661.2121 or EMAIL: Sctprop@aol.com .

 

About the Author: Scott Godzyk is the Owner/Broker of the Godzyk Real Estate Services in Manchester NH. Proud to be locally owned and operated with 33 years of experience, Scott is a leading Agent for Listing and Selling Homes in this area.We are Full Time Agents ready to serve all of your Real Estate needs. Servicing Hillsborough, Rockingham, Merrimack and Belknap counties. 

 

    

Comments (22)

Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Exactly Wayne Martin yet some sellers choose and accept the bare minimum to save a buck that can lead to losing tens of thousands 

Nov 01, 2019 04:53 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

NH is pretty straight forward with eviction Barbara Todaro . You pay you stay, you dont you wont. I aready hooked them up with a local lawyer who has served the tenant with the eviction paperwork. The tenants have wrecked the home and have tons of junk. It will be an easy one to price and sell to a cash buyer who will close quick and help the seller out of their bind. The seller is happy with all that has happened in a short time.

Nov 01, 2019 04:55 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Scott... I've yet to see a lease/purchase work out. And I always recommend to my clients who have tenants to have the tenants move out before we list.

Nov 01, 2019 05:12 AM
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Lease purchase was the first mistake!

Give the tenant a SHORT window of opportunity to qualify (like 6 months), right of first refusal, home stays on the market!

They never close and they are called TENANTS! 

Even if they CAN qualify, they will destroy the house and then either complain that owner needs to clean up their mess, if they qualify they'll find another house and bail, OR MOST LIKELY they will never qualify and it's the owners fault! So they trash the home and impede any attempts at a sale. BEEN THERE where a 'tenant buyer' not only left a disaster, but after costing the seller 3 trip charges when they would not let the appraiser in, they actually told all the neighbors to come liberate fixtures and appliances! Fortunately my handyguy caught and stopped it. BTW the tenant was a Code Compliance Officer for City. 

So you did great. Get the tenants out, trash out and clean up and get it sold.

IF the tenant is a great one, that adds value for an investor. But they must cooperate or be gone.

Nov 01, 2019 06:14 AM
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, eXp Realty - Kalispell, MT
Helping your Montana dreams take root

Great job! I'm betting you'll be posting very soon with a "sold" story!

Nov 01, 2019 07:29 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Poor seller, they don't know what they don't know. Hopefully, you will sell it for them quickly. 

Nov 01, 2019 09:31 AM
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

I hope you wore you super agent cape when you met with them Scott. Sure you will have this under contract pretty soon and have another story to share no doubt.

Nov 01, 2019 10:41 AM
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Scott- I have no doubt that with your determination and experience, this will work out. 

Nov 01, 2019 12:36 PM
Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Well that's an easy fix, but you know that Scott. Bring in the dumpsters and get this show on the road....

Nov 01, 2019 01:31 PM
Jim Patton
Aspire Home Real Estate 209-404-0816 - Modesto, CA
Realtor - Stanislaus ,Merced, San Joaquin Counties

Great post Scott Godzyk.  You can sell a home with tenants in it, but this one was not one of those homes.  Good job on getting it ready to sell! 

Nov 01, 2019 04:24 PM
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Trying to sell with a tenant is more often than not a hinderance!  And, if the tenant is keeping the house in the condition pictured above, that adds a larger issue yet.

Nov 01, 2019 04:37 PM
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

CONGRATULATIONS Scott, on having this blog FEATURED in the Old Farts Club group!  

Nov 01, 2019 04:49 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I have found the only ones that work are one the tenant is qualified for a mortgage, but needs time to save money for a down payment and or closing costs Nina Hollander 

Nov 02, 2019 06:08 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Exactly Candice A. Donofrio and i go to the extreme asking for a non refundable deposit n the purchase from would be lease buyers 

Nov 02, 2019 06:09 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

That is the plan Kat Palmiotti 

Nov 02, 2019 06:10 AM
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

That is a reason we do not have rental properties in our portfolio. One bad tenant ruined the experience for us...nice job getting it done, Scott. 

Nov 02, 2019 07:52 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Scott,
Tenants can be a problem but not always.  The problem usually comes when they know they are not being monitored.  As for lease/purchase, they can be good or bad... there again depending on how they are handled from beginning to end.  That was one of my specialties.

Nov 02, 2019 11:23 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

It is sad Sheri Sperry - MCNE® and now to fix it for them

Nov 03, 2019 04:55 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I need one Nick Vandekar, 610-203-4543 and that is the plan

Nov 03, 2019 04:56 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Thank you Kathy Streib 

Nov 03, 2019 04:56 AM