The home market is currently a seller’s market, especially as millennials start buying their first homes. Buying that first home can be a challenge at the best of times, especially as you consider the burdens of moving and the downside of buying a home only to discover that you do not like it afterwards.

For those who are renting a home or condo, an attractive way to avoid those challenges is to buy the property you are living in right now. The Washington Post reports that only five percent of renters purchase their rental each year, but that is partly because many never consider the benefits of such an option. You know that you like the place you live in and can trust the seller. There is no competition. And since you know each other, the landlord can sell without using a listing broker which benefits both of you.

Of course, buying the property you are living on presents some unique challenges and requires a great deal of research. By taking the right steps, you can make sure you are ready to finally become a property owner.

Talk with Your Landlord

If your landlord flat out has no desire to sell, then trying to buy the property becomes an obvious waste of time. Set up a meeting with your landlord, preferably face-to-face, and express your willingness to buy within a few years. Talk about how it would be good for them and how they know you can be trusted.

If your landlord gives you a flat no, it may unfortunately be time to start thinking about buying a home somewhere else and moving. But there is no harm in asking, and we are currently in a market where your landlord is more likely to say yes.

Get an Appraisal

Your landlord may be willing to sell you the property, but perhaps the two of you substantially differ on how much the home is worth. It is thus important to get the home appraised, both by hiring an appraiser to walk through the home and by doing a comparative market analysis (CMA).

When hiring an appraiser, both you and your landlord should use the same appraiser instead of hiring two separate ones. You want the process to be as smooth as possible, and two different appraisals can invite conflict over different estimates.

Hire a Real Estate Agent and an Attorney

You may think that professional help is unnecessary as you know and trust your landlord. But when you are dealing with property worth hundreds of thousands of dollars if not more, it is highly important to get the i’s dotted and t’s crossed. This is especially so when you consider that your landlord is almost certainly much more experienced at dealing with property matters than you are and in setting up an LLC for real estate, and that informational imbalance can lead to you agreeing to something you come to regret.

You and your landlord do not have to hire a real estate agent right away, though an agent can help in negotiating a fair price and compiling a CMA. But you should absolutely hire one when it is time to make a formal written offer. You can also consider hiring a lawyer to draw up a contract. The Balance notes that lawyers and real estate agents have different specialties and using one to do the other’s job is a bad idea.

Get Financed

You may have professional help and have figured out how much the property is worth, but you almost certainly need to get mortgage financing. Even if your landlord decides to not sell you the home, it is time to start preparing so you can eventually qualify for a loan.

Pay down any debts (especially student loan debt), make sure you have enough saved for a down payment, and ensure that you can show a history of steady work. Once you have accomplished that, speak with multiple lenders to get multiple quotes and aim to get pre-approved. You may consider doing this even before you first speak to your landlord, so that you can show that you truly have the means to buy the property.

Consider Alternative Agreements

Even if you cannot get a sufficient loan, there are alternative methods to buy the property. One method is called a rent-to-own or lease-to-own agreement. As Nolo details, you would pay an additional fee called an option fee on top of your normal rent, which would eventually accumulate and become the down payment for buying the home.

However, these agreements can be highly variable and come with severe downsides. For example, most rent-to-own agreements come with a clause which states that if you decide to not buy the home after all, the landlord gets to keep all of that extra money from the option fee. If you do decide to go with this option, make absolutely sure that the agreement is in writing and is drafted by a professional.