Tenant wants to buy the condo he is renting
Jordan had been renting a two bedroom condo in Etobicoke for several years, and decided a few months ago he was ready to own. His landlord was interested in selling, so it looked like a perfect storm of circumstances. Jordan came to our office to see if he qualified for a mortgage.
In fact, he is an excellent mortgage candidate – a poster child for Millennials. He has excellent credit; a great job as a teacher; and has saved up assiduously since he entered the work force a few years ago. Qualifying for the mortgage was not the issue.
I could tell Jordan and his landlord were far apart in the final purchase price, and yet Jordan was leaning towards paying this amount, even though he knew in his heart it was too much. I did some research and I too was not comfortable with the asking price. His landlord was looking for $380,000, which he later dropped to $368,000.
I really felt Jordan needed the guidance of a real estate agent. Once Jordan said he did not have one, I referred him to Michael Petrant of Right at Home Realty. Knowing Mike well, I assured Jordan that Mike would look objectively at the situation and give him his personal feedback on whether or not this was a good move for Jordan. I knew Mike would put his personal interests aside to help one of my clients.
So they met, and they liked each other, and Mike gave Jordan a price range within which he should be comfortable to buy his apartment. Mike felt Jordan’s landlord was asking as much as $20,000 too much.
Time passed and Jordan’s landlord would not budge. So Jordan reached out to Mike and they went out looking for something suitable. This was a no – brainer for Jordan. He likes him, and respects Mike’s knowledge and demeanor. And as a buyer, it was not going to cost him any money to tap into Mike’s expertise.
It did not take long for them to find something highly suitable, smaller yes, at $55,000 less than the price Jordan’s landlord ultimately wanted. He’s moving in this week.
The lesson here is that you never have to go it alone. Surround yourself with subject matter experts who make you feel comfortable, and make your home buying experience a wise and profitable venture.
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