Should a Property Be Listed For Sale AND For Rent Concurrently?
What a great question! Sadly, it is not a question that is asked enough by Bristow, Gainesville or Haymarket home owners who find themselves at a crossroads. Most home owners toying with the idea of listing for sale or rent are typically already landlords. Maybe they are what we call "accidental landlords" who were unable to sell their principal residence when first attempted, and now have a fear of failure when it comes to listing for sale only. Perhaps they have been a landlord for years and did so as a purposeful investor. No one who is a landlord likes a vacancy period. It can be costly.
For the purposes of tackling this question, the parameter of the answer is taking into account current market conditions in Bristow, Gainesville and Haymarket, VA in the latter half of 2018. If you are unfamiliar with what these market conditions are, let me fill you in. The Bristow-Gainesville-Haymarket real estate market is still favoring sellers. That means there is more buyer demand than there are listed homes. It's been this way for a couple years now. It means high prices for sellers. And while we see the stabilization of the market in the near future, now is still a great time to get a high price for your Bristow-Gainesville-Haymarket home with minimal marketing time.
If the resale market favors sellers, the Bristow-Gainesville-Haymarket rental market is more than just a tip in favor of landlords. Properties placed on the market for rent are swamped with inquiries and activity the moment they are put on the market. Because Northern Virginia is a transient area, and there are fewer rental properties on the market while home owners who have rented are cashing out while the market values are high, there isn't as much for tenants to choose from.
In the market conditions described above, a property owner who is toying with the idea of listing for sale AND for rent needs to understand that if the idea of doing this is to go with whatever happens first, you will continue to be a landlord. Your rental property may as well be a lifeboat floating alongside the wreckage of the Titanic. You are going to be overwhelmed by the tenant response. While still favoring sellers, the sale market doesn't work that fast. It may take a week or two to go under contract. Yet, the prices have reached their highest points since before the crash of 2008.
The question Bristow-Gainesvillle-Haymarket home owners need to ask themselves is whether they truly want to sell now, or if they prefer to be landlords indefinitely? If you really want to give selling a shot, DO NOT immediately list for sale AND rent simultaneously. List the property for sale, giving a reasonable time frame to get the job done. If the property is still available after however long you have allotted to market the sale, then bring the rental listing online. If you leave it to the market to decide whatever happens first, you will be a landlord again.
Consulting with a local expert, like myself in Bristow-Gainesville-Haymarket real estate, can help you figure out how long to give the property to sell, at the determined list price, before bringing on the rental listing. If you are unsure of what you should do, give me a call and let's talk over your specific circumstances vs. the market realities and come up with a plan that works for you.
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