Need advice: What's the best way to sell my house to the tenants?

[pibegotan]

My tenants are very interested in buying my house. They are proposing to do it with only their agent, that is, without me being represented by an agent.
They are also proposing to buy it "as is", that is, without me doing necessary repairs (e.g. roof, fence, and whatever the inspections discover).

I need advice as to the best way to proceed. I am not sure where to start.

Since I already have the buyers, is it a good idea to NOT use an agent?

Should I get it appraised and inspected first?

And then, would I most likely end up making more money if I used an agent for the negotiations? I am not good at negotiating, and I have no experience in real estate negotiations.

The main question is: is it potentially worth to start researching how to proceed, or should I just hire an agent who takes care of the whole thing?

Thank you for any guidance/suggestions!!!

[aprazma]

You should do a comparative market analysis of the property, comparing it to similar properties that have recently sold, to get support for proper pricing. You can attempt to do this yourself, or hire an agent on an hourly basis to perform one for you. Knowing the property's actual market value will benefit your knowledge of its true value and the buyer's ability to get financing (more likely that it will appraise at the right amount).

You need to consider the tenants' offer and compare it to the estimated market price indicated from the comparative market analysis. If the tenants' offer, plus commission and selling expenses, is lower than the market price, you may want to consider placing the property on the MLS.

Finally, if not using an agent, review the contract terms carefully and make sure the terms protect your interests. I would make sure there is an adequate earnest money amount, clearly defined inspection periods and financing periods, and clearly defined closing cost terms.

[Codythebest]

Check the price and get more!
Hire an agent if you want and sign a buyer's representation.
Make sure to make him(her) understand that he(she) working for you, and not the transaction.
Depending on your mortgage and stuff, I'll go owner financing with wraparound.
Let's say this:
You bought the property $150K with $20 down, 6% on 30 years
I'll sell it to them for $170K with $40K down and a 8% on 30 years.
You get the $40K and 2% on the $130k for 30 years. Good deal.
If they default? You get $40k AND a property worthing $170K that ....you'll sell Owner Financing with another $40K down....

Now, you tenants may be your friends or make just a regular deal, so you may lose money right there...I mean it's up to you...

[pibegotan]

Thanks so much for replying! It's very useful advice. I have a couple more questions:

1- To determine the property market value you advise me to hire a real estate agent by the hour. Is there any advantage of doing this versus hiring an appraiser? Won't I have to deal's with the agent's pressure to represent the sale if I hire an agent? (since they'll see the opportunity of a big commission). I figure an appraiser doesn't have any vested interest and would inform me of the real market value, is this true?

2- I was planning on having the property appraised and inspected, in order to know the market value and the obligatory repairs before starting to negotiate with tenants. Is this the correct order of steps?

Thanks for clarifying!

[aprazma]

An appraisal would be even better. Typically these include 3 recent comparable sales comparisons.

The inspection will help you develop a strategy for which items should be repaired in advance, and which can be delayed or omitted. The only downside is that property defects known (in this case, made known) by the seller must typically be disclosed.

I do not think the order matters.