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To Sell or to Rent?

We bought our house in 2009 and remodeled... now we have different needs and are not sure if we should sell and cut our losses or rent it out and hope that the market comes back. We might make a little on the sale considering our upgrades, if we rent  it out we probably  won't make any money off the rental... I wish there was a forecast specifically for our area but CA itself is forecasting even lower housing prices statewide in 2012.
  • March 09 2012 - Salida
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Answers (6)

It it important to define " the different needs" before you can make the best choice. Do you have to move for a job? Or family or health issues? It seems like the fact it is not worth what it was worth is a concern. Why else would you rent it if you HAD to move? You have a concern of trying to recoup the money and rent it until that time. Every seller in this situation feels like they are leaving a piece of themselves behind. It is not only the money. That is the obvious. It is the regret, the sadness, the loss of confidence in the choices they made ,and they really second guess their new choices even more when this happens.For some of my families there is more strain on the family and that also creates more issues. MUST you move? WHAT is the goal? Is it a need or a want to move? Where the different needs a result of the loss of income, the loss of value of this home? For some they just need to get out of a depressing environment. Ask yourself IF the home was worth 50,000 more would your needs still have changed and you need to move? Then do not focus on the loss of money, if you need to sell. Sit with your Realtor and an accountant to work out projections. Define your true motivations., needs ,wants objectives of selling,or keeping the home. That is where it starts. Once you sell..it is done,renting is not always fun and especiallly when you CAN sell. I certainly would rent over a short sale. You DO have choices and options, Best wishes and good luck Suzie
  • June 13 2012
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With the current demand in the market, prices are starting to trend upward. Renting may be the thing to do if you haven't made the decision. Data is available specific to Salida and the County.

I hope this helps and let us know if you have any other questions. 

Rocky
  • May 09 2012
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You may not make money on the home as a rental, but would you be preserving hard-earned CASH that you've invested in the home, like down payment money or renovation money? If so, hang onto the home. It's too hard to make up for lost cash in these hard times.
  • April 18 2012
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One thing is true about the housing market, it never stays the same. I will list a few great reasons why us Realtors see Spring as a turn around point for the housing industry:
1) FHA government-guaranteed loans were restored to higher temporary borrowing limits, already resulting in more sales volume in high-cost areas such as Southern California.
2) National unemployment rates dropped to 8.4%
3)Mortgage interest rates reached new record lows
4)The inventory is remarkably low compared to the past year. In San Diego County we are at 2.4 month supply.
Detached homes under $300k are selling as fast as they can close!According to the California Association of REALTORS, the median price of an existing, single-family detached home rose 1.8% in December 2011. Sales volume has risen for three months in a row to the highest level in a year.
If all this information doesn't put a smile on your face, call me, have more! So, to answer your question, if you can afford your mortgage, stay as long as long as you can, otherwise, try renting it out, if rent covers all your expenses ( mortgage, tax and HOA). There is a huge demand for rental properties, call me if you live in the San Diego County, I can give you a good idea of how much your home could sell for or rent for.Hope this helps!
  • March 11 2012
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One thing is true about the housing market, it never stays the same. I will list a few great reasons why us Realtors see Spring as a turn around point for the housing industry:
1) FHA government-guaranteed loans were restored to higher temporary borrowing limits, already resulting in more sales volume in high-cost areas such as Southern California.
2) National unemployment rates dropped to 8.4%
3)Mortage interest rates reached new record lows
4)The inventory is remacbly low compared to the past year. In San Deigo County we are at 2.4 month supply. Detached homes under $300k are selling as fast as they can close!
According to the California Association of REALTORS, the median price of an exissting, single-family detached home rose 1.8% in December 2011. Sales volume has risen for three months in a row to the highest levle in a year.
If all this information doesn't put a smile on your face, call me, have more! So, to answer your question, if you can afford your mortage, stay as long as long as you can, otherwise, try renting it out, if rent covers all your expenses ( mortage, tax and HOA). There is a huge demand for rental properties, call me if you live in the San Diego County, I can give you a good idea of how much your home could sell for or rent for.
Hope this helps!
  • March 11 2012
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How much is your payment and how much rent could you charge? Even a monthly loss of $200 will be a $2400 loss for the year. If it takes a long time for the prices to bounce back then might not be worth it. Most homeowners that are doing a short sale have looked at that and decided that it's not worth it to rent the home and take a loss every month. You won't be able to buy for 2 years after a short sale. I think that prices will go down a little for 2-3 years, then go up a little for a few years, follwed by another period of better than average gains.
  • March 09 2012
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