Potentially buying the house we rent

[Folklore9074]

We have been living in a house for a while having moved to the area from another part of the country. We sold our property there and wanted to see if the area was right for us before we committed.

As it happens we really like it and have been looking for something to buy for a while but the market has been wild with interest rates and fluctuating working/ living costs making our search tricky.

Now our landlord is getting our house valued and considering selling. I've mentioned previously that we would be interested if they sold. Having discussed with my partner we are both agreed we would like to buy this if possible. The place has its faults, a few things here and there need attention, kitchen/bathroom could do with an update but otherwise our preference would be to buy this house.

Has anyone ever bought the place they were renting? Is there anything we should consider that would be different to a normal sale? Is our negotiating position (for want of a better term) weaker than it would be if we went through an estate agent? How would you approach this?

At least having lived in the house you are familiar with it and aware of any faults that may exist, not something you can say about buying in the normal way. It will also save on removal costs and the (slightly) less stress is priceless.

Don't overestimate your buying position though.
Yes it will avoid going to market (and potentially some redecoration costs by the LL), take out the will they/won't they hassle and means the LL will get rent right up to exchange but other than that, will only save the seller the EA fees (1.2%+vat).
Still an advantage though.

When we sold my late parents home 18-months ago the tenant was really keen to buy but thought they should get a discount off the asking price equivalent to the rent they had paid over the previous 3-years. It was only when it sunk in that they were going to have to find somewhere else to live that they eventually offered the asking price but by then it was too late.
The delay waiting for them to move out, a rapidly rising market and B&F meant that they were way off the mark.

I bought the flat I was renting. No downside, I knew what I was getting, got my deposit back and didn't have to move. It was a furnished flat so I paid a small amount to keep all the furniture (horrible stuff but saved me having to buy anything in a hurry).
The landlord refused to negotiate with me in advance so I paid market rate via the estate agents. While it was on the market I had to allow viewings but made no effort to declutter or hide the defects (clutter was mostly the landlords, I did make sure it was clean and tidy).

Yes ,we bought a flat we were renting. No downsides at all, we got a good deal too as it didn't go in the market so avoided EA fees.

Really useful to hear your experience. And yes, I do think you’re wise to say don’t over estimate our position. In their place I would be tempted to go to market myself. But the rent up until completion isn’t something I’d considered but of course it makes sense. Honestly we will have to see what they want for it but if we stayed here there are moving cost that we wouldn’t incur and that ‘saving’ could increase our purchase price a bit. It wouldn’t occur to me to expect them to deduct the rent from the price. I don’t see how you could think that anyone would go for that. Odd.

As a landlord I would bite your hand off if you offered a sensible amount. Once you’ve lived in a house, you have confidence in its basic inhabitability so you’re far less likely to be spooked by a survey. The logistics are straightforward, you don’t have to prepare it for viewing, spending money on post-tenancy fresh paint, or have to negotiate either a period of expensive rental void or selling with tenants still there and risk worrying buyers/not being able to present the house the way you’d like. So many benefits over and above the agents’ fee.

Good to know @Whenwillglorioussummercome appreciate you sharing that take. I’ve never been a landlord so it’s handy to hear that point of view. I wonder if I should approach them after the valuation or wait to see if they approach us… generally I feel like being proactive is best but I want to be clearly interested rather than pushy.

Friends of my parents did this. They moved to a rented 'temporary' house when they sold before buying- it was in an area they hadn't considered
buying, they fell for it big time, bought it and never moved again!

I’m a landlord and I have recently completed a sale of one of my rental properties to the tenant. We sold without an estate agent - saved on fees meaning that I could give a little discount on the sale price. You’ll need a solicitor. It is recommended you also get the property surveyed- whilst you’ve been living in it as a tenant, there might be some underlying issues that you aren’t aware of.
Obviously you’re saving costs anyway by buying the home you rent as you will have no moving costs neither.

You’ll also pay rent up to the date of completion which I’m sure you’ll expect. The deposit you paid when you first rented the property should also be returned on completion day too. For me, I agreed with the tenant to use it as the last months rent.

We did this, and my BIL and his wife also did this. Not sure if theirs was listed with EAs or not but ours wasn't.

What's pushy about declaring your interest? If you want to buy it, they have to know...