Offering to buy house from landlord – what’s the process?

We’ve lived in our house as tenants for almost 3 years. We have really settled in the area and have our kids integrated into the local school system. We have good relationships with our neighbours and the landlord too.

As our yearly lease reaches the end, we are considering buying our first home here in this area. It then became apparent to us that the ideal outcome would be for us to actually own the current house we rent. I want to start a serious conversation with our landlord about whether they’d be interested in selling their home to us.

The house has some issues, but nothing major we are aware of. It badly needs new windows throughout and a fair bit of kitchen work (flooring etc).

I’m going to speak with my bank about a pre approval. I got a pre approval last year, although we didn’t act on it, so I don’t foresee any issues with that. Our pre approval last year covers the “median” value for homes in our area like this +10%. However, I am having a hard time working out what to do once we have a pre approval.

Should I talk to my landlord first and gauge whether they have any interest? I am wondering whether I should have a number first – in that case should we get an inspection and appraisal? Is that something that’s doable without owner permission?

I would love to avoid the rat race of the open market and bidding wars, but I know there a strong possibility they won’t want to sell as they make good money from us as tenants and might see this as an irreplaceable investment, so I am preparing for that outcome. I am hoping the fact that the house needs a fair bit of TLC might play into our hands though. Plus, they wouldn’t have to list it with agent fees and we have a 3 year relationship to work from.

Any advice / prior experience appreciated. Thanks!

submitted by /u/HeavyMetalSatan
[link] [comments]

We’ve lived in our house as tenants for almost 3 years. We have really settled in the area and have our kids integrated into the local school system. We have good relationships with our neighbours and the landlord too. As our yearly lease reaches the end, we are considering buying our first home here in this area. It then became apparent to us that the ideal outcome would be for us to actually own the current house we rent. I want to start a serious conversation with our landlord about whether they’d be interested in selling their home to us. The house has some issues, but nothing major we are aware of. It badly needs new windows throughout and a fair bit of kitchen work (flooring etc). I’m going to speak with my bank about a pre approval. I got a pre approval last year, although we didn’t act on it, so I don’t foresee any issues with that. Our pre approval last year covers the “median” value for homes in our area like this +10%. However, I am having a hard time working out what to do once we have a pre approval. Should I talk to my landlord first and gauge whether they have any interest? I am wondering whether I should have a number first – in that case should we get an inspection and appraisal? Is that something that’s doable without owner permission? I would love to avoid the rat race of the open market and bidding wars, but I know there a strong possibility they won’t want to sell as they make good money from us as tenants and might see this as an irreplaceable investment, so I am preparing for that outcome. I am hoping the fact that the house needs a fair bit of TLC might play into our hands though. Plus, they wouldn’t have to list it with agent fees and we have a 3 year relationship to work from. Any advice / prior experience appreciated. Thanks! submitted by /u/HeavyMetalSatan [link] [comments]

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