Buying from landlord

[Cathaygirl]

We plan to ask the landlord directly if he is keen to sell his house we are renting from.
My question is should I go through the Ray white, who is managing the house. Or go straight to the landlord?
I have his details from a friend who has rp data. I would prefer to go directly. if landlord agrees, we save cost for both side minus the agent. I'm not sure of he implications if seller says no and reports back to Ray White or whatever. Or should I just write a letter to him so its not too imposing?

Anyone had any experience in same regards to share?

 

[wylie]

I'd write to him. Ray White doesn't need to be involved, and if he reports back to them I cannot imagine what they could do. You haven't done anything wrong.

Having said that, it is often advised here on SS that there "could" be something hidden in the landlord's contract with Ray White that they have "introduced" you to the property, but I doubt it, and even if there is, it is not you paying commission, but the vendor.

I say... go for it.

 

[travelbug]

I'd go direct.
You can't get into trouble for that. If you go through the agent they will want a commission.

As mentioned- get the LL to check their contract.

 

[Scott No Mates]

Go direct, if he agrees get him to terminate the management agreement well before settlement so there is no apparent link.

 

[Andrew_A]

...Anyone had any experience in same regards to share?

Dealing with private sellers.. only slightly more fun that dealing with agents. Having said that you have a substantial advantage in that you wouldn't be a cold enquiry, you have the property in common and that's a great start.

 

[Cathaygirl]

Thanks for your replies everyone.
We have been looking at the recent sales and current market value in our area. It has recently, been picking up. As first home buyers, we aren't certain of a price that we should agree on.
Assuming he says yes, we would ask the LL what price he would be happy with. And if its too far fetch from our asking price, should we consult a valuer to give us an estimate price to negotiate from?
Would that be about the right way? I know since I am the one with the initial interest, the LL may use this to his advantage and probably will call the shots.
Any advice is appreciated!!

 

[esh]

If the agent finds out they would want some kind of commision as indirectly they found a seller for the owner. If you do go down the path of contacting owner directly then maybe the ower should end their contract with Ray White first before going ahead with you. I'm sure Ray White would find out if you bought the house whilst still under their management

 

[brahms]

I'd assume the managing agent hasn't an authority to sell the property, so I really can't see how they can make claim to anything.

Nothing wrong with private sales, be adult and honest about it and you'll be fine.

 

[BMan]

go direct to the LL and let them work out whether they want to go through the REA or not

 

[handyandy]

Go direct to the LL.

Offer a price that you are happy with. If you don't offer a price you are happy with and the LL is unsure of himself then, the first thing he will do is ask the Agent. Agent recommends he can get more on open market and it is then marketed. Price goes somewhat higher and property could be sold to someone else. You end up homeless.

You need to try and keep control of the process.

Don't be surprised that the owner says no. He was not thinking of selling and is not one of his goals.

If any tenants of mine were to approach me my answer would be No as it's not where I want to be.

Cheers

 

[Angel]

You have a friend on RP Data. Get your friend to print out the comparable sold prices of very similar homes in your local area within say one or two kilometres, with all the details of each property. This is how we do basic valuations. You will be able to then work out a fair price to offer.

 

[Cathaygirl]

Thanks for your reply!
I just found out through rp data that the LL has more than 15 IPs under his name! From a positive point, he is well into the investment arena and he might actually be willing to let go his IP for other future investment.
From a neg point, he will know it too well and might want a better deal for it.

Angel, this house is the oldest in the street but has a lot of potential to Reno/upgrade, thus has a good potential to up the value. So, I can kind of make out the price range. But i want to start at the lowest price without insulting the LL.

Anyone been approach by a tenant in buying your IP? I'm thinking of calling them and asking them to pop by for a cup of coffee.... I am hoping by being friendly and personal they will be open t the idea.....

 

[Peterw]

We get quite a few of our tenants approach us during a year asking about buying the property that they rent. We are happy to approach the owners, and if in fact a "quiet" sale would suit the owners at this time, we usually negotiate at a figure happy to both. While yes, the owner pays a fee, they are assisted by our advice on what the current market value is, and we can suggest that this sale would save marketing etc. They also appreciate, that if selling is on the cards, selling while tenanted is not always the easiest, so this sale overcomes that problem. We can also assist the buyer with finance connections etc. I also believe that most owner?s, also appreciate, that the tenant would not know about the property, had they not rented it through the agent. Most people in business, appreciate, that if the business does not produce sufficient income to exceed expenses, then quite a few people are out of jobs.

On the other hand, we have very few owners decide to sell, just because of an approach by a tenant. They are approached on a very regular basis, roughly every time we put the property up for rent, by other agents, with interest from buyers as well as better tenants than what we can get for them.

 

[wylie]

We get quite a few of our tenants approach us during a year asking about buying the property that they rent. We are happy to approach the owners, and if in fact a "quiet" sale would suit the owners at this time, we usually negotiate at a figure happy to both. While yes, the owner pays a fee, they are assisted by our advice on what the current market value is, and we can suggest that this sale would save marketing etc. They also appreciate, that if selling is on the cards, selling while tenanted is not always the easiest, so this sale overcomes that problem. We can also assist the buyer with finance connections etc. I also believe that most owner?s, also appreciate, that the tenant would not know about the property, had they not rented it through the agent. Most people in business, appreciate, that if the business does not produce sufficient income to exceed expenses, then quite a few people are out of jobs.

On the other hand, we have very few owners decide to sell, just because of an approach by a tenant. They are approached on a very regular basis, roughly every time we put the property up for rent, by other agents, with interest from buyers as well as better tenants than what we can get for them.

Peter, what would you do if the tenant contacted the owner directly and they arranged a sale between themselves? Do you have clauses in your leases that mean your office is entitled to sales commission?

If not, is this something you've heard of? If so, would you pursue that commission? (I guess you would if you've put such a clause in the lease.)

This has often been discussed on the forum but never been answered to my knowledge and is something I'd be interested to hear.

 

[Peterw]

Wylie, I dont know about other States, however in Qld the appointment forms are produced by the State Government and they do not give the agent the right to a commission should the tenant purchase directly from the landlord. Hope that helps

 

[wylie]

Thanks Peter. I've read here on SS that some leases do contain such clauses. I wonder if this is an "urban myth" or whether it is for real. I'd be keen to hear from anybody who knows.