Mooers Realty Maine Real Estate Blog
The New Listing Has A Maine Home Renter On Board.
When we get a call to list a Maine home that already has a renter in it, it is always interesting to hear the comments we receive.
From both sides. The renter who may want to buy the place goes on and on about everything wrong with the Maine house. To the point where we with as straight a face as possible ask "so how come you want to buy this Maine home?"
Because not much good has been listed by the husband and wife as they tag team me during the walk through to arrive at a home listing price.
The seller tells me about missed rent and then money just automatically deducted for repairs, renovations that are not all needed.
Or that don't improve the place and often are just the renter's preference. Without clearance, approval from the owner of the home. As the Maine home renter gets braver and starts thinking the place is their very own already.
And if they did buy it, they would love credit for all the months of rental deducted off the top of a reduced special price just for them.
I have to explain that it costs money to live anywhere.
Renting, owning, both come with a price tag. That the owner of a Maine home does not get rich renting out the house. That you need two rental untils, a duplex to break even. Three or more units to turn a profit. Because you can only charge so much for the single residence home rental.
Rates are so low at banks that a home sale in Maine could be a cheaper option if the rent for the house is hoisted too high.
Today's walk through has a Maine home renter who has improved a place that was lived in hard, put away wet. Neglect, abuse and other design flaws all added to the situation we now find ourselves in. A home in Maine to sell that the renter would like to purchase but at a discount.
The other issue is can the renters become buyers of the Maine home due to a bankruptcy three years ago? Owner financing on land in Maine happens a lot. But a home with a larger price tag makes for a very long term mortgage. Nice annuity if the renters pay on time and continue to improve the Maine house. But their performance with the rent has been up, down, something derailed. Which makes for hard feelings, everyone feeling taken advantage of and add to it they are all in one family.
And because the home has no mortgage, wouldn't it be nice if a discount, blue light special deal carved out for just them, the renter.
That thought gaining strength, hollering mentally at the front of the renter's mind. The condition of the Maine home when an appraiser comes through with a clip board and pen protector in the left hand breast pocket will get noted.
Written up and the underwriters could suddenly spring on the buyer a laundry list, as long as both arms of do this, repair that.
The renter hoping to do the updates in time, with a budget. The bank thinking, demanding right now. So they can package up the mortgage and dump it.
If the renter can come up with a chunk of change and cranks up the size of their monthly rent, takes on the responsibilities of the property taxes, Maine house insurance, owner financing the home is an option.
Otherwise, if they can not get financing, we want to keep them renting month to month. But after throwing in the towel of options to turn them into buyers and arrive at a price both seller and buyer can handle, stomach, we move on.
Often neither party is too wild about the other going in and that can sour negotiations.
Both feel taken advantage of and the seller who is many states away, several time zones is out of mind. Not making surprise visits and has to rely on phone messages, emails and some that go on deaf ears, unanswered.
To marketing full throttle to find a buyer for the Maine home who can make it happen. Put it together financially for a bank loan. Or locate a buyer who does not need a bank and can pay cash. Or put half down and tidy up the rest of the purchase price in monthly installments.
Maine, big state, less people, more outdoor four season beauty surrounds us in Vacationland.