Buying A Home
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Need to Move- Sell? Rent?

My husband has a job opportunity in DC. We *really* want to take it. We aren't on a strict timetable, however, and can move anytime within the year. 

 We bought our house in March 2009. At the time it was mid-priced next to the comps in our neighborhood... but ours is the only house that sold. Ouch. We paid $167k, houses for sale in our neighborhood are currently $110 (abandoned/foreclosed) - $157k. The realtor we talked to thinks we'll be lucky to make $160k. We wouldn't accept any offers that were less, as we don't want to short sale. 

 We're considering selling it ourselves, using a For Sale By Owner service that supplies you with signs/advertising and listings on Realtor.com, etc. But we're terrified of screwing this up- we've never sold a house. If we use the realtor we'll have to take out a temporary loan to pay closing costs (here, it's typical that the seller pays buyers closing costs as well). 

 OR we could rent our home just to keep it. My worries with this are: having to be landlords from another state, having crappy tenants who could mess things up, the neighborhood getting even worse and not being able to sell it when the time comes. 

Sorry this is long... what are your thoughts on our situation?  

Re: Need to Move- Sell? Rent?

  • My husband and I were in a similar situation, except that we had a month to move. We just got the word out there to family and friends and it ended up being that a friend we can trust moved in and is renting it. We had her sign a lease for 6 months that says any damage done to the property is her responsibility.I did a detailed walk through of the house with her and we wrote down all the "damage" that was already there. So far there haven't been any problems. I hope all works out for you, sorry im not better help. All I can say is get the word out! :)  Good luck

     

  • image anotheramy:

     the neighborhood getting even worse and not being able to sell it when the time comes. 

    This would be my main concern.  If it were a loan of under $10k, I would probably be fine with it just to get rid of the headache, and I would pay it off asap. 

    ds born may 2011
  • Thanks, ya'll. You both made really good points. Guess we've got a lot to think about!
  • One more point to consider - if you sell, you haven't met the 3 year requirement for keeping your government tax credit and will have to pay it back!

     

    I'd rent it til that's up, then try to sell in a better market.

    I twitter randomly about gardening, sustainable living, local restaurants, cooking and more. Follow me on Twitter at Sarah_STL
  • image rubyiu:

    One more point to consider - if you sell, you haven't met the 3 year requirement for keeping your government tax credit and will have to pay it back!

     

    I'd rent it til that's up, then try to sell in a better market.

     

    good point! we had to pay ours back :( so dissapointing!

  • If you can't afford to take a huge hit on the house or short sale, I'd consider renting it out. Our house sat on the market for nearly 7 months, and we had to move and didn't want to short sale. We signed with a property management company, who took care of all the advertising, application processing, and interviewing. They are doing all of the landlord stuff for us (for a fee, but the peace of mind is worth it). I never wanted to be a landlord and I would have preferred to just sell our house, but we didn't have many options.
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  • image Maybride2:
    If you can't afford to take a huge hit on the house or short sale, I'd consider renting it out. Our house sat on the market for nearly 7 months, and we had to move and didn't want to short sale. We signed with a property management company, who took care of all the advertising, application processing, and interviewing. They are doing all of the landlord stuff for us (for a fee, but the peace of mind is worth it). I never wanted to be a landlord and I would have preferred to just sell our house, but we didn't have many options.

     We are going to look into this. Thank you. Do you end up getting your mortgage payment from the management company? I'm just wondering how much they take out of the monthly rent from the tenants. 

  • image Maybride2:
    If you can't afford to take a huge hit on the house or short sale, I'd consider renting it out. Our house sat on the market for nearly 7 months, and we had to move and didn't want to short sale. We signed with a property management company, who took care of all the advertising, application processing, and interviewing. They are doing all of the landlord stuff for us (for a fee, but the peace of mind is worth it). I never wanted to be a landlord and I would have preferred to just sell our house, but we didn't have many options.

     We are going to look into this. Thank you. Do you end up getting your mortgage payment from the management company? I'm just wondering how much they take out of the monthly rent from the tenants. 

  • image blinnea23:
    image rubyiu:

    One more point to consider - if you sell, you haven't met the 3 year requirement for keeping your government tax credit and will have to pay it back!

     

    I'd rent it til that's up, then try to sell in a better market.

     

    good point! we had to pay ours back :( so dissapointing!

    The real estate agent that we talked with said that if you sold at a loss (for any amount less than what you paid) you don't have to pay the 8k back. Is he wrong? Google says differing things. We would talk to an accountant if we were to sell before March, but it would be nice to sell before then (if we sell at all). Thanks! 

  • image anotheramy:
    image blinnea23:
    image rubyiu:

    One more point to consider - if you sell, you haven't met the 3 year requirement for keeping your government tax credit and will have to pay it back!

     

    I'd rent it til that's up, then try to sell in a better market.

     

    good point! we had to pay ours back :( so dissapointing!

    The real estate agent that we talked with said that if you sold at a loss (for any amount less than what you paid) you don't have to pay the 8k back. Is he wrong? Google says differing things. We would talk to an accountant if we were to sell before March, but it would be nice to sell before then (if we sell at all). Thanks! 

    The house has to be your primary residence for atleast three years.(where we live at least) We moved and are renting it out so we had to pay the 10% back.

  • image blinnea23:
    image anotheramy:
    image blinnea23:
    image rubyiu:

    One more point to consider - if you sell, you haven't met the 3 year requirement for keeping your government tax credit and will have to pay it back!

     

    I'd rent it til that's up, then try to sell in a better market.

     

    good point! we had to pay ours back :( so dissapointing!

    The real estate agent that we talked with said that if you sold at a loss (for any amount less than what you paid) you don't have to pay the 8k back. Is he wrong? Google says differing things. We would talk to an accountant if we were to sell before March, but it would be nice to sell before then (if we sell at all). Thanks! 

    The house has to be your primary residence for atleast three years.(where we live at least) We moved and are renting it out so we had to pay the 10% back.

    I thought that's the way it was... boo. Well, it makes renting look more appealing. If we can get it rented by March, then we can move in March and not have to pay back the 8k, but who knows how long it will sit on the market and then we'd be out 11k. How has renting out your house gone for ya'll? Are you satisfied with the arrangement?  

  • image anotheramy:
    image blinnea23:
    image anotheramy:
    image blinnea23:
    image rubyiu:

    One more point to consider - if you sell, you haven't met the 3 year requirement for keeping your government tax credit and will have to pay it back!

     

    I'd rent it til that's up, then try to sell in a better market.

     

    good point! we had to pay ours back :( so dissapointing!

    The real estate agent that we talked with said that if you sold at a loss (for any amount less than what you paid) you don't have to pay the 8k back. Is he wrong? Google says differing things. We would talk to an accountant if we were to sell before March, but it would be nice to sell before then (if we sell at all). Thanks! 

    The house has to be your primary residence for atleast three years.(where we live at least) We moved and are renting it out so we had to pay the 10% back.

    I thought that's the way it was... boo. Well, it makes renting look more appealing. If we can get it rented by March, then we can move in March and not have to pay back the 8k, but who knows how long it will sit on the market and then we'd be out 11k. How has renting out your house gone for ya'll? Are you satisfied with the arrangement?  

     

    im happy with it. although we knew the person long before she lived in our house, and we know we can trust her. We still had her sign a lease and all that, and so far everything has been awesome!  

  • How much do you currently owe?

    We are in a very similar situation. DH has taken a job in another state and I can't afford to quit my job and move with him with our mortgage and now extra rent. Our house has been on the market since January :( DH and I decided that if we haven't had any real interest in it by June 1, we're going to rent it out. It sucks but that's just how it is right now.

    I would imagine you would rather sell just for peace of mind. If so, I would price it as low as you possibly can and feel out the market.

    I would also talk to a CPA and look into the homebuyer's credit. If you take more than an 8k loss on the house then you don't have to pay it back. Our CPA went through all of our info and said we would not have to pay it back.

    [IMG]http://i56.tinypic.com/33vlx6a.jpg[/IMG]
  • image anotheramy:

    image Maybride2:
    If you can't afford to take a huge hit on the house or short sale, I'd consider renting it out. Our house sat on the market for nearly 7 months, and we had to move and didn't want to short sale. We signed with a property management company, who took care of all the advertising, application processing, and interviewing. They are doing all of the landlord stuff for us (for a fee, but the peace of mind is worth it). I never wanted to be a landlord and I would have preferred to just sell our house, but we didn't have many options.

     We are going to look into this. Thank you. Do you end up getting your mortgage payment from the management company? I'm just wondering how much they take out of the monthly rent from the tenants. 

    Our company charges 10% of the rent. For the last few months, we were losing around $30/month due the difference in rent + fee and our mortgage payment. But our lender just recalculated our mortgage payments for the next year, and now we'll actually be making a small amount of money each month.
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