Three Alternatives to Selling Your House.

January 18th, 2008 categories: Real Estate News, Real Estate Selling

”Rule No. 1: Never lose money. Rule No. 2: Never forget
rule No. 1.” Warren Buffett

Are you the frazzled seller -no buyers on the horizon- carrying two mortgages or transferred to a new city?

Recently John Matarese, host of the popular news segment “Don’t Waste Your Money”offered advice to frustrated home sellers to consider renting their unsold houses. I think for some sellers that is great advice assuming you have a good tenant and you are not moving out of town and can handle the “landlord/management” functions of a rental property. House for rent in Cincinnati Ohio

A list of things to think about if you are moving out-of-town:

- Who will keep an eye on the property and handle routine maintenance items?
- How much of a deposit can be secured in case the house needs major resotoration prior to
   selling?
- Will the rent cover your current mortgage, interest, insurance and property taxes?
   If it does not cover the expenses, how much can you afford to lose each month?
- Are there any tax implications to you when you become a landlord- make sure to consult
   your tax professional so you don’t have a problem at tax time.
- Where are you going to advertise for a tenant and what is your advertising budget?

After you add up the pros and cons (and expenses) of renting your home, think about dropping the sale price on the property in order to get the house sold. Run the numbers on the financial impact of selling for x amount of dollars and closing within 90 days. Compare the expenses for both options and make an informed decision about rent or sell.

There are alternatives to renting!

If selling at a reduced price won’t work, there are other options to renting such as “land contract” or ”lease with option to purchase” which usually require more commitment from the tenant and may set up a win/win for both the seller and the buyer. Your real estate agent or attorney can explain about a land contract or a lease options.

Consult with professionals to get all the facts and then make an informed decision about selling, renting, land contract or lease. If you have unanswered questions give me a call or send an email.