I received an email today from a customer through Active Rain about Myrtle Beach real estate, and was astounded at the question they asked. I won't include names, but below is the body of that email, and my response back to them.
I cannot imagine any ethical real estate agent advising a customer to sell a resort property or any other kind of real estate right now. Even Donald Trump is yelling "buy, buy, buy".
To: Me through Active Rain - Subject: Market Outlook
We have received a doom and gloom outlook from a N. Myrtle Beach real estate company recommending we sell our investment condo at a loss now because 2009 and 2010 will be no better.
We are willing to rent this unit long-term to wait until the market turns around, but would like another view on this issue.
I understand that $ 850 is all we can expect from renting this lovely, furnished 2/2 within walking distance to the beach, on a great resort and on a golf course.
Your thoughts are most welcome.
My answer...
Hi XXX,
While I'm not an agent, I work with about half of the ones here and talk to numerous ones everyday. And I certainly would NOT agree with that advice whatsoever. Now is the time to BUY, not to sell!
If you can afford to keep your condo, I would beg you to do so. Right now everything is at rock bottom, and there are way too many on the market. They are taking losses on all of them and the foreclosures are adding to the problem. While I don't know how long it will take for this situation to right itself, beach property here has ALWAYS bounced back, and in most cases it appreciates at a good rate. There is no reason to think that that won't happen again as soon as the mortgage crisis is over with and the country's economy goes back to normal.
I would say $850 a month is probably about right if you aren't right at the ocean. I live in a condo right over the bridge in Little River that is considered a "golf" condo (although the golf course is further down) and our annual rentals are about $700-750 for a one bedroom and maybe around $800 or so for a two bedroom. Some of that price would depend on whether you furnish the electricity and cable too. Ours do not.
While I don't know if things will improve as early as 2009, I'll bet it won't be much longer than next summer...just my personal opinion. The buyers and leads I bring in for real estate have already doubled in the past 2 months, so hopefully these foreclosures and low-ball prices will be purchased and get off the market so it can straighten out.
And if you can afford to keep your condo and keep it rented without too much out of pocket expense, I would absolutely tell you to do so...and in the meantime, if you can buy a couple more at these rock bottom prices, you ought to do that too! If I had the money, I'd buy as many as I possibly could. But sell now?? NO WAY.
I can't imagine any real estate agency that has your interests at heart telling you to sell right now. That is almost criminal in my book!
Jan
###
New websites I'm working with right now: Flower Mound Tx Real Estate - Frisco Texas Real Estate - Greenville SC Real Estate
Comments(0)