Rent vs. Sell

By
Real Estate Agent with Frank Rubi Real Estate
I was reading my local newspaper today and found an interesting article.  Seems some sellers have resorted to leasing their homes instead of selling them.  Funny thing is I approached a seller yesterday of one of my listings.  I asked her about the exact same thing.  I have a person willing to lease it for a year, would you be interested?  I know this isn't what the sellers really want, but it will pay the note and actually generate some cash for them. 
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Comments (9)

Robert Dirienzo
HABITEC Home and Building Inspections, LLC - Franklin, TN
Home Inspections - Nashville TN

Seems like a reasonable approach in these difficult times.  Beats sitting on the market for months eating cash flow.

Richard

Mar 09, 2008 03:17 AM
Sharon Paxson
Compass - Newport Beach, CA
Newport Beach Real Estate
Many people in our area have opted to lease their home during this time.
Mar 09, 2008 03:20 AM
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen
When the market is soft, some sellers don't want to take the loss. A short sale is not always the only option. Just be sure the sellers really are mentally prepared to be landlords...and highly recommend that they use a property manager.
Mar 09, 2008 03:21 AM
Julie Heyer
Right Home Realty - Gilbert, AZ
Gilbert AZ Realtor

I did it myself. It wasn't ideal, but it bought us a year. The problem is that unless values come up or the inventory declines within the next year they could be worse off at the end of the lease. I leased my house last Feb for $600 less than my monthly mortgage. I was hoping the market would pick back up a bit sooner here. Well, a year later the house is down another $30K in value and the rents in the area have declined too from so much competition.

If they have a low enough mortgage payment and can qualify for their next house without selling that one it's a great idea. They need to be patient, but within a few years it will pay off.

Good luck!

Mar 09, 2008 03:22 AM
John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana
I wish I had that crystal ball and I would be sitting pretty.
Mar 09, 2008 03:24 AM
Paul Kaplan
The Paul Kaplan Group, Inc - Palm Springs, CA
Mid Century/Modern homes in Palm Springs - www.Pau

When I recommend leasing a property, I always tell the seller of the risk that their values may go down before they go up in this market.  They can sell now for a loss, or lease for a few years, and possible sell for a greater loss down the road.  If they are up for leasing it for 5 or so years, then that shoudl give them time for the market to rebound.

 

www.RepoCaravan.net

Mar 09, 2008 03:27 AM
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com
John, not only will they have positive cash flow in this case. Did you mention possible appreciation next year. If only 3% what type of wind fall is that for the seller. In addition, the paying down of the mortgage.
Mar 09, 2008 11:37 AM
Derek Bauer's, www.DoorToDreams.com Door to Dreams Home Selling Team
Real Estate One - South Lyon, MI
Leasing has become EXTREMELY popular, and many times out of necessity.  I have numerous listings that are both for sale, and for lease.  You are right ... anything to stop the bleeding ... are how many Sellers are looking at it.
Mar 09, 2008 02:28 PM
JL Boney, III
Coldwell Banker - Columbia, SC
Columbia, SC Real Estate
Not many sellers have resorted to this practice here in Columbia. But I have to say, that if it were my house and I had a lot of trouble selling it, I'd definitely consider leasing.
Mar 09, 2008 02:30 PM

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