Should I Rent or Sell? Let's review your Options!

By
Real Estate Broker/Owner with House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# ER40011786
https://activerain.com/droplet/5dZ

We get many questions from potential and current clients regarding their personal situations.     I got this email from a past client, and called her with her options -

I've been giving more thought to moving from downtown.  Can I have my place for sale and rent at the  same time? (Whichever comes first and/or whichever  one that I  can get the best price)

For Rent?

 

This was a great question, and when you are thinking of moving out of a primary home, and the home is not free and clear, it is good to have some options.

I had given this seller a few property management companies to contact when she has questions regarding the rental option.     They had come over and given her a list of repair items and the potential rental amount to expect.    She was happy, but now wants to compare the option to sell.   

 

In my listing agreement, I always enter - if the seller wants to For Sale?terminate prior to end of the listing period, the seller will pay me $XXX for advertising, and seller will be released immediately.     With this, I suggested she contact the management company to see what they would charge her, if anything.     In Denver, the rentals could be quicker, as this property is in the heart of Denver and in a desirable neighborhood.    After doing the CMA, I suggested she prepare the property, and offer it for rent for a month, then we could do both, and can review her options to make sure she chooses the option to benefit her.

I always refund this advertising fee collected once we eventually close, so a win-win for the seller!

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rental vs selling
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Rainmaker
1,157,866
Barbara Michaluk
Weichert Realtors | Silver Spring, MD Phone Direct 240-506-2434 - Silver Spring, MD
Leisure World Specialist / Full Service REALTOR

Sellers do not realize how much time and money goes into marketing their home.  Best to make them aware of this and ask for a committment for the duration of the listing agreement.

Jan 20, 2011 12:37 AM #1
Rainmaker
1,816,979
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

Joan, great post for consumers & yes advertising should be paid for by the homeowner if rental is the final undertaking....

Jan 20, 2011 01:11 AM #2
Rainmaker
4,315,023
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Barbara, after explaining the situation, she has decided to try the option for rent first, and then try to sell at a later date!

Jan 20, 2011 01:46 AM #3
Rainmaker
4,315,023
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ginny, luckily this potential seller is also a friend, and understands shelling out advertising money needs to have a purpose.      Some sellers may not feel the same way!

Jan 20, 2011 01:47 AM #4
Ambassador
2,303,883
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Joan that is so frustrating when clients don't know what they want to do.  I guess they think we do property mgmt in addition to selling.

Jan 20, 2011 02:43 AM #5
Rainmaker
4,315,023
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Belinda, some do, but I choose not to!    It is good to give a good explanation of how it works to sellers!

Jan 20, 2011 02:56 AM #6
Rainmaker
257,850
Joyce Godwin, Realtor, CRS
RE/MAX Elite Properties; Serving Cypress, Spring, Tomball, NW Houston - Houston, TX
RE/MAX Elite Properties

Joan, I don't do property management either.  Too much involved if a problem crops up.  I would rather do what I do, and let a property management company handle property management.

Jan 20, 2011 09:39 AM #7
Rainmaker
4,315,023
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Joyce, too much trouble is right, plus I like my sleep in the middle of the night!

Jan 20, 2011 09:43 AM #8
Rainmaker
1,069,700
Bob & Leilani Souza
Souza Realty 916.408.5500 - Roseville, CA
Greater Sacramento Area Homes, Land & Investments

Joan, that's a terrific idea that you're covering your advertising expenses in your client/friend's sell-or-rent scenario! We don't shouldn't work for free. :)

Leilani

Jan 20, 2011 10:04 AM #9
Rainmaker
2,558,163
Rebecca Gaujot, Realtor®
Vision Quest Realty - Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Joan. I agree with Leilani, agents shouldn't work for free.

Jan 20, 2011 11:41 AM #10
Rainmaker
3,330,925
Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400
The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Home and Condo Specialists

Joan, Giving them options is the best scenario and then decision is theirs!

Jan 20, 2011 11:51 PM #11
Rainmaker
4,315,023
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Leilani, it would be better if we DON'T work for free, as the mortgage and car payments still need to get paid!

Jan 21, 2011 01:38 AM #12
Rainmaker
4,315,023
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Rebecca, ditto!

Larry & Sheila, I think where her home is located, the rental option may be the best at this point, but it IS her decision!

Jan 21, 2011 01:39 AM #13
Ambassador
1,511,727
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Great guide for homeowner options in the Denver area!

Jan 21, 2011 04:51 AM #14
Rainer
366,052
Scott Hayes
(512) 786-8300 - Austin, TX
Realty Austin, Broker Associate

Joan

I enjoy property management, but I compare pursuing to having children. It's one of those things you should do, only if you are one hundred percent committed.

Jan 22, 2011 03:01 AM #15
Rainmaker
4,315,023
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Renee, thank you!

Scott, I still would rather JUST do residental sales, where I am totally comfortable!

Jan 23, 2011 12:28 AM #16
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Rainmaker
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Joan Cox

Denver Real Estate - Selling One Home at a Time
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