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Homeowners Become Renters And What A Difference

By
Real Estate Broker/Owner with Havelock-Adams, LLc BR520783000

The real estate market is no longer impacted just by those who bit off more than they could chew when they bought their home a couple of years ago. Now almost everyone who purchased a home between 2004 and 2008 probably owes more on the house than it is worth. Many have lost their jobs and can't carry their mortgage and need to downsize. An increasing number are being forced to sell short or in the worst case, walk away and the net result is that bad credit leads them to the rental market. The new market renter has not lived in an apartment or rental home since their young days when they first started out. Landlords and property managers have to understand that these people are different than the "fill a box" tenants of years past.

Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

I agree, Ward.  I have had so many sellers rent for a while and come back time and again to buy because they can't stand renting an apartment.

Nov 15, 2011 09:46 AM
Ross Therrien
Prudential Verani Realty, Londonderry,New Hampshire - Londonderry, NH
Realtor, Broker Associate

Goes along with the talk to landlords.  Need to explain to them that flexibility of credit must be considered. In addition this group of renters(former homeowners) generally makes very good tenants. 

Nov 15, 2011 09:51 AM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Agreed * many former homeowners need hand-holding and encouragement or their home they really want will be GONE!

Nov 15, 2011 10:00 AM
Ward Adams
Havelock-Adams, LLc - Surprise, AZ

Thanks Ross, exactly my point and Susanne you illustrate the point that a $300 commission may not seem worthwhile to a residential sales agent but if you help the buyer when they are in a pinch it will provide dividends in the future.

Ward

Nov 15, 2011 10:16 AM