What incentives would encourage a quick home sale in this market?

[LoveBWVVBR]

When DH told me what the next door neighbors are getting in rent on their house yesterday I started to re-think not renting ours out. I am 100% sure that we'd use a management company, but I think that we may be way better off renting. Aside from property taxes and homeowners' insurance, we'd be making pure profit as we own the house free-and-clear.

Honestly, I am afraid of the liability of being a landlord, though. Also, I'm afraid that renters will trash our home and/or that we'll have to deal with non-paying renters/eviction. I guess that that is what the management company is for, though?? Anyways, we've had no further showings despite another small price drop and offering to pay 3% towards the closing costs. If this continues for a month I think we'll pull it off the market and just rent it out indefinitely. Who knows...it could be a blessing in disguise if we can have a profitable income property and also sell this house when the market recovers somewhat.

 

[lyonking3]

Renting is an option. Rent price will dictate the quality of your tenents. Renting isn't a bad option. (Some one pays down your mortgage and you make a few dollars per month.) If you do rent, HIRE a manager to manager it. He gets to be the bad guy if the tenents need a talking to. Management companies charge about 10% of rent, but you buy PIECE of mind knowing some else has to deal with the headaches of a difficult tenent. You just get to be the final authroity of things.

I've put my For SALE/Lease and took which ever came first. Been renting my home for about 7 years now. Beats the 1% a bank will give you. Profit margins can be slim, and if you go to buy and new home, banks will only count about 75% of rental price as income for your new house. But if you can swing it, renting can work. You get a good tax break too every year.

 

[TxRabbit]

We rented out our home. I, too, wasn't thrilled with the option. We did it ourselves. I have to say that I'm thrilled to know the people that are renting our home. It was an amazing situation and let me know that truly, we were supposed to rent out the home.

Don't worry about. If it's what is supposed to happen, the details will all work out. Who knows? Perhaps your renters will want to buy your home after their first lease expires?

 

[debranator]

You need to see what brand new houses in your area are selling for..and..then decide.
AS funny thing about real estate here...in the Orlando area:
I went house hunting in Feb....looking for an older home....
Anything I looked at..3000 sq. ft or more..was over 300...
most of the homes that I liked..were priced in the high 3's.
One of them,I wanted to make an offer of 310..the broker told me..that it would be a waste of time..as the comps....
were at least 340..
she had 3 comps on her sheet.
Later that week...I saw new construction..in fancy developments,
with much nicer...newer houses..
in the same area...
priced 100 grand less.
I asked the broker...why did you say...not to make a "low ball" offer on the other home...
when..these...
were...lower priced...better homes..with more square footage....
how could these not be taken into consideration on the comps?
She said: "they are not comp...they are better. "
So..needless to say..I bought a brand new one..and put in my own pool.
so..check the prices of new construction to make sure you price your house correctly for the market.

 

[LoveBWVVBR]

You need to see what brand new houses in your area are selling for..and..then decide.
AS funny thing about real estate here...in the Orlando area:
I went house hunting in Feb....looking for an older home....
Anything I looked at..3000 sq. ft or more..was over 300...
most of the homes that I liked..were priced in the high 3's.
One of them,I wanted to make an offer of 310..the broker told me..that it would be a waste of time..as the comps....
were at least 340..
she had 3 comps on her sheet.
Later that week...I saw new construction..in fancy developments,
with much nicer...newer houses..
in the same area...
priced 100 grand less.
I asked the broker...why did you say...not to make a "low ball" offer on the other home...
when..these...
were...lower priced...better homes..with more square footage....
how could these not be taken into consideration on the comps?
She said: "they are not comp...they are better. "
So..needless to say..I bought a brand new one..and put in my own pool.
so..check the prices of new construction to make sure you price your house correctly for the market.

There is no such thing as new construction where we live unless a home has been knocked down to make room for a new one (or 2). There is no buildable land left here. New construction happens on the mainland, not on the island. The markets aren't comperable.

 

[debranator]

I did not realize that...

 

[LoveBWVVBR]

We rented out our home. I, too, wasn't thrilled with the option. We did it ourselves. I have to say that I'm thrilled to know the people that are renting our home. It was an amazing situation and let me know that truly, we were supposed to rent out the home.

Don't worry about. If it's what is supposed to happen, the details will all work out. Who knows? Perhaps your renters will want to buy your home after their first lease expires?

The renters next door want to buy the house that they're renting but the owner doesn't want to sell it to them. I wonder if we'd also end up with renter/buyers. It certainly is an option, but what about liability? Am I worrying too much about that? I don't want a renter to fall and get hurt in my house and then sue the pants off of us, KWIM? Of course we have insurance, but what if it doesn't cover a settlement? Stuff like this would keep me awake at night.

 

[LoveBWVVBR]

I did not realize that...

It's a whole different world out here, LOL! When we go to the mainland I always think that the new towns/neighborhoods look SO beautiful compared to the '60's-era housing stock where we live. It's a trade-off for sure, but we just can't be away from the ocean.