Expert: Hans Weber, Licensed Broker Associate - 8/7/2006

Question
We have been renting a home and are interested in purchasing it from our landlord. When we moved in, they mentioned that they were hoping to sell it within the next few years. Is there anything to be aware or careful of before we start this process? Is buying privately a safe way to go?

Thanks,
Jennifer

Answer
Hi Jennifer,

Thank you for your question.

Since you are already in the house you won't incur moving expenses and you also won't have to spend a lot of time looking for the right house.  If you are happy in the house that is a great starting point.

Then the next issue would be the price.  You and the landlord need to come to agreement on a price which will be agreeable to both of you.  This can be done in several ways.  You can either split the cost of an appraisal or each hire an appraiser to do an official appraisal of the property and take the average of the two.  If one or both of you are unhappy with the resulting price then you can have the owner put the house on the market for sale with you having the option of matching any contracted price.

Perhaps you have already discussed a price and are all satisfied?  Then you only need to decide if you wish to have an inspection by an engineer.  Then contracts need to be prepared and sent you the attorneys for review for each side.  Your attorney should do a title search on the property.

There is nothing wrong with buying privately especially since you are already moved in.

Of course, afyet the seller gives you the price you may want to shop around in the market to see what else is available.  It's all up to you.

Good luck.
Hans