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SELL or RENT

By
Real Estate Agent with Marie Avery-Wwithers/Coldwell Banker Realty

Are you getting alot of people asking should I sell or rent?  I know I am. I hae even have the same dilema.  I had a renter recently move out of an investment home.  I probably could have sold the home for about $ 75,000 at the height of the market in 2005 then I could now.  But we need not think in those terms anymore.   Just call them "the good old days".  On th eother hand I don't want to look back a year from now and go, sheesh the price has dropped another $ 75,000, I should have sold it.

Anyone have a crystal ball? Any advice?  Clents are calling asking, "what should we do"?  They are getting a job transfer, heading for the hills to avoid taxes and insurance, or just thinking of making a move out of town, etc... I can only advice them as I advice myself. Rent and you take a chance that the prices might drop further, stay stable or may even go up.  Also you have a risk of the renters trashing your property and the repairs exceed any appreciation you might get.  Then again, if you rent it long enough you can take the loss against your taxes if it qualifies as investment property. On the other hand, if you try to sell, you are up against alot of inventory, you may have to lower your price just to stay ahead of the competition.

No, I am not a naysayer (even if it sounds like it so far).  I am a REALTOR. I am in the real estate industry and am here to stay. so I do believe there will be a light at the end of the tunnel.  The real estate industry has always seen it's ups and downs in history.  If you talk to the old timers they say all this is nothing new, it's happened before and probably will happen again. But real estate is still the safest investent in the long run.

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So the answer, rent or sell? The answer is look at all the options, look at your cash flow needs then make a decision. Hey, by the way, do you have any renters for an executive home in Bradenton, Florida??

Happy Selling!

Posted by

Marie Avery

WCR, CDPE, CIPS, CLHMS, CRS, GRI, e-Pro, PMN, TRC                                                                                                                                     

Avery-Ayers & Associates RE/MAX Alliance Group Bradenton / Sarasota, Florida  941-725-0911                                                                                             

Marie@AveryAndAyers.com  www.BradentonRealEstate.com   Blog: www.AveryAndAyers.com                                                                                                        

I appreciate your referrals! Servicing your Real Estate needs in Florida, in Manatee County, serving Bradenton, Palmetto, Ellenton, Parrish, Lakewood Ranch and north Sarasota.

Comments (4)

Carlos Arvizu
Carlos R. Arvizu Sr. with Prudential California Realy - Downey, CA
(R.V. Zoo)

Hi Marie,

The last time we were in a market like this was between, 1992 to 1996.  I did 20 + lease with the option to purchase.  It worked for me, Credit was not a problem.  I gave them 3 years to clean up their act, Financing was not a contingency.  I charged them above market rent, and gave them a credit of XXX if they exercised their option to buy.  If the failed to purchase, they lost all of their option money.  It worked for me.  I am in the process of doing it again to get out of this media induced slump that were in. 

We should see the market turn around after the refi boom is underway.  It should start shortly after the Feds lower the Fed Funds rate (approx. .25% to .50%.  When the Fannie and Freddie increase the  conforming Loan Limits, for high cost areas, such as California, will see some relief.  The market should rejuvinate and stabilize somewhat, 

This market of foreclosures and short sales will subside, so there will be a small window of opportunity to capture business from investors and  people looking for a deal.  Good luck, God Bless, and make it a Productive week.

Success is measured by the amount of effort you product.  Think out of the Box, and stay ahead of the game.

 Carlos R. Arvizu Sr.

562-755-3856

www.CarlosArvizu.com

TheDon1850@aol.com

Oct 25, 2007 01:22 AM
The All Pro Team
EXIT Realty Leaders - Crystal River, FL
Maria, I have been telling my clients if you can afford to hold on to and rent do it, if not sell!
Oct 25, 2007 01:09 PM
Mike Norvell Sr
Morris Williams Realty - Leesburg, FL
Norvell Consulting Group
Ditto on the lease option comment, keep your lisitng agreement in place, contingincy contract for purchase with set sales price, year one__?_price year 2_________different price________year 3 higher price...If nothing else, its a great proeprty management tool If you really are not sure, I can send you some current info on lease options
Oct 25, 2007 01:25 PM
Michael Davenport
Hot Properties - Concord, NC
Real Estate Broker, Charlotte
I really see a big swing for renting in our area. The only problem with the lease option is that a lot of people around here don't want to do it. I think it scares people because it is not a traditional buy or sell.
Oct 25, 2007 03:09 PM