Profile picture for user0378212

Just Bought House

My wife and I just bought a house in Jan. 2013.  I may have a job offer that requires me to move us out of state.  

If I understand my research correctly, our options are:

1. Rent the house while we look for one in the other state.

2. Pay 2 mortgages for awhile.

3. Seek a short sale.

Do you have any advice for us as we try to be wise with our future here?

We paid $107,000 for the house.  It appraised for $110,000.  We have put some minor work into the house.

Thanks!
  • September 25 2013 - US
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Answers (12)

Profile picture for Westside Realtor
It really depends on where you are, to be able to weigh your options. The only reason to short-sale your property would be if you owe more then the house is worth. If you can sell for what you paid, you can break even on it, and use the money to purchase elsewhere.
Although I generally like investment property, in your case it would be better to sell and pay off your loan.
Good luck to you.
  • September 28 2013
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Profile picture for cnrtool1
Option 4- hire a management company to screen a tenant, collect the rent, evict the deadbeats, and keep up on the repairs, while taking full advantage of the generous tax benefits of owning a rental property.

One day, the property will be paid off and the rent will be supplemental income in your retirement.
  • September 28 2013
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I think this really depends on where you are moving for your job. I moved from Kansas to California 6 years ago and my jaw literally dropped going from relatively well off to moderate poverty. The costs of living where you are right now are probably way better than either coast if that's where they want to move you. If you are moving locally, get some comps and sell if necessary. Make the new sale of your home contingent on the sale of your old home. You have many options but a short sale seems pretty unnecessary being that you are trying to possibly buy a home right away in another city. You won't even be able to unless you're buying with cash. Hope this helps!

  • September 28 2013
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Profile picture for wetdawgs
There are other things to consider:  

*  selling, and if a bit short bringing cash to closing.   Qualifying for a short sale is not guaranteed.   

* carrying two mortgages for a while - will  your income be sufficient?   Do you have sufficient down payment and reserves so that you will be considered for a mortgage at destination?  

*  renting at the new location is sensible.  It allows you to get to know the community and allows you to get your finances in order (such as selling the old house and saving up a down payment).  
  • September 28 2013
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Prices have gone up in most areas, like others have said, and there is a possibility that you would break even on the sale of your home. The minor repairs that you have done on the home may have also added some value as well.  

Explore all the options to make sure you are making correct decision for yourself. 

Doing a short sale should really be last resort.

Good Luck!
  • September 28 2013
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Profile picture for Carole Tyne
Since Jan prices have gone up.   Contact your Real Estate agent for recent comps and options.   You maybe surprised to find out you will break even on a sale.    
  • September 28 2013
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Hard to say without knowing your financial situation. 

If you can break even on the home by selling it, or walk away within reason, I'd just sell it and move on with my life.

Renting the house and living far away can be a pain, and property management expenses can sometimes make renting it significantly less profitable than expected.  You'll need to do some homework here, however if you feel the property will appreciate, and renting the home is financially acceptable, go for it.

A short sale is a bad idea unless you absolutely need to rid yourself of the property and don't mind taking a loss.

Good luck!
  • September 26 2013
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If it was in my area, I would say sell, if you will lose money, than rent it.  Short sale should be the last resort.  Rentals are hard to find because so many people are looking at different times of the year.  Put an ad on craigslist for lease or through an agents leasing dept.  MAKE SURE you do a google search and background check on potential renters.  I have helped some clients lease their homes and the information I have found from just a google search disqualified them (arrest photos).  As far as being in another area from your home I suggest you include lawn maintenance in the rental price, so there is never an issue with the yard as well as asking an agent or leasing company to monitor the home (driving by to make sure it is still there once a month). 
  • September 25 2013
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Congrats on your new job. Keep in mind changing jobs will not qualify as a rational for a hardship and get you a short sale approval.

You may want to list your current home for sale, and lease in your new town until you get your current home sold.

Will your new employer provide you with any housing/relocating financial help? Will you need the proceeds from the sale of your home to close on a new home?

Also, if you short sale your current home, your credit will take a it and you will not be able to buy a replacement home in the near future.

Best Of luck to you!
Kawain Payne, Realtor
  • September 25 2013
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Profile picture for user0378212
Michael,

Thanks for the update.

We are located in the Kansas City, MO area.
  • September 25 2013
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Hi,

It depends on what your house would sell for now. I am not sure where you are located but many areas of the country have gone up in price since January. You should probably look for an agent in your area ( and if you happen to be in theTucson AZ area, I would be happy to help you) and ask what they think it would sell for. You may not need to do a short sale! Every situation is different, so it is very hard to give generalized answers. It may be wise to rent the house if you think you will want to move back there in a few years.
  • September 25 2013
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Or get your new job to relocate you at their cost and buy your house. Some companies do offer this as an incentive.

Or put up a FSBO sign and sell it yourself for enough to pay off the loan or bring enough money to cover the difference.

Good luck.
  • September 25 2013
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