Colorado Springs Seller Tips - Are You Willing to Risk Losing a Buyer by Renting Your House?

Seller Tips - Are You Willing to Risk Losing a Buyer by Renting Your House?

Playing Roulette With The Sale of Your House

Sellers today who have to move and take on the burden of two house payments have a difficult decision to make. Should they rent the house or keep it on the market? Many times houses are on the market both For Sale and For Rent. Whichever happens first is what the Seller will do. If the house rents, it is a solution to cash flow in the short term, but in the long term it may not be in the Seller's best interest.

A better strategy is to look at the cost of carrying the house, including insurance, taxes, maintenance, and comparing that against the decline that is continuing and see if it is more cost effective to adjust the price to where the house will sell rather than endure the possibility of someone doing damage to the house and it not being worth in next year's market what it is worth now.

Marketing Is Still Out There after the House is Rented

Internet Marketing - Place the house on a number of sites and it is distributed to others, who in turn get it out there to other sites. Even if the house is off the MLS, Realtor.com and other major sites, it is STILL being marketed by the myriad of other sites who may not update from the site who sent the listing. The result? People can find a listing months after it is 'off the market' and want to see it.

Even though we do not want houses on the internet that are not on the market, the reality is that some of it is beyond our control.

Agents Remember What Was for Sale and Didn't Sell

Right now I am scouring the area looking for a house for a Buyer. There are three houses I thought of that are not on the market but ones she may like. Two are rented. Bummer. Tenants want private enjoyment, it's in their contract, so we can't see the houses. Too bad because this is a cash deal and one house in particular I think would be SOLD if we could get in. So in a market still declining, what could be the cost to the Seller ultimately for the short term 'gain' of renting the property?

Last Fall, a listing had JUST rented. The tenants had not even unpacked their boxes when an agent in the office frantically asked me if they could show the house. It was impossible. The tenants did not want to do it. The Buyer had to have a house, had a large family, was interested in this house, and her kids were going to school in the area. Another missed opportunity.

Sellers Must Look at the Numbers

Sellers need to look at average Days On Market (DOM) for the price range they are in. They also need to consider the Average Sales Price and especially look at the Last Sale to see where they need to position their house to sell.

Often Monthly Rentals do not cover the mortgage, taxes and insurance. They definitely do not cover maintenance costs and landscape deterioration. If Sellers are waiting to buy a new home until they sell, there is a risk that interest rates could be substantially higher, costing them even more.

In other words, when it's time to sell, just do it!

  

To reach us, call or text us at 904-673-2308 or e-mail - sharon@teamalters.com

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