Home Selling in Buford>Question Details

Richard, Other/Just Looking in Buford, GA

I have a townhome that has been on the market for over a year with only 4 showings. I am considering renting

Asked by Richard, Buford, GA Tue Dec 2, 2008

the unit out and moving on. My HOA does not allow anymore rentals in the community.What is the worst case senario that can happen. The property value has droped below what I owe, so the only thing that makes any sense is to rent it out.

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There are some important factors you haven't mentioned. If you have to move due to some hardship, such as job relocation, can't make your payments or many others, and the house is worth less than what you owe, you should ask your Realtor about a short sale. In most cases, as long as you have a documentible hardship of some kind (and there are many kinds), lenders will allow you to sell the property and forgive the remaining debt. In some cases they even pay incentives and moving expenses to the seller to do a short sale.

I can't tell from your post whether your townhouse is still listed with a Realtor. If it is talk to him or her about a short sale as a potential option..
0 votes Thank Flag Link Sat Jan 19, 2013
I would like to rent it. I am single with a son in high school. I would take good care of your property and you can check me out. My cell number is 678-974-9485. Thank you.
0 votes Thank Flag Link Fri Jan 18, 2013
Richard,
Going the rental route is a direction that many people in your same situation are electing to do. It a matter of cutting your losses and waiting for the right time to sell.

On the other hand, if your HOA wdoes not allow rentals you find yourself amid another problem. We suggest being in touch with your HOA to outline your delima suggesting they reconsider their regulation.

We would also suggest consulting a real estate attorney for their perspective.

Best of luck
the Eckler Team
0 votes Thank Flag Link Sat Dec 6, 2008
There are a few steps you need to consider.
First, you need to do an honest appraisal of the area's rental prices. If your payment is $2000 and the area rentals are $1500, then you either need to be ready to lose money every month (of course it is less of a loss than you would be experiencing otherwise, but for a specific time frame), or you need to find an alternative (short sale, losing money on the sale, etc.).
Second, find out from your HOA if you are allowed to rent the property. If not, can you get a variance.
Third, start to look at how to market the property.

Now, if you need to sell the property, you need to look at why it hasn't gotten showings. Are the pictures ugly? Is it grossly overpriced compared to the comps? Are the restrictions (seller needs 24 your to show, appointment only, etc.)?

There are a lot of variables to everything. A good agent can talk over all of your options... and a good agent isn't going to be shy about options that don't profit them... they should look out for your best interests.
0 votes Thank Flag Link Sat Dec 6, 2008
The truth is that homes are selling, over 700 have sold. So the problem is not that homes are not selling, it's that YOUR home did not sell.

So what makes a buyer buy a home? It's a buyer's market, buyers want value. If you are unwilling or unable to price your home to sell, then renting it out is a great alternative. Check with a CPA on the tax implications during and most importantly, WHEN YOU DECIDE TO SELL. I became an accidental real estate investor and it was a rewarding experience.

Good luck!
0 votes Thank Flag Link Wed Dec 3, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Richard,

I too am a resident of Buford and I try to keep updated on the real estate activity in the area. I'm sorry to hear of the challenges you're facing with the sale of your home. I'm sure you've already had a discussion about renting the property with your listing agent. Really, that person should be your source of information on this matter.

One question though. Is there anything distinctive about your home? You know, most of the real estate agent community is claiming incorrectly that down payment assistance has gone away. It would be interesting to see if activity picked up because of a sign in your lawn advertising the availability of down payment assitance for the purchase of your home. Again, please check with your agent on this strategy and see if it works.

All my best.

Solomon Greene
REALTOR® / Consultant - Keller Williams Realty Atlanta Partners
(678) 775-2677
0 votes Thank Flag Link Wed Dec 3, 2008
Richard,

You've gotten advice on this before: http://www.trulia.com/voices/Home_Selling/HOA_covenants-64472--.

Your listing agreement was supposed to be up in November. What happened? It's worthwhile to consult with a professional on selling.

As far as renting goes. If I didn't have a real estate license, I'd tell you to rent it out but don't advertise it "publicly" - note: craigs list is not public.

If I'm here officially and I sort of am, I'll tell you to consult with your HOA. If you're under what you owe, ask them to consider what another short sale or foreclosure will do the neighborhood? Renting is better than that.
0 votes Thank Flag Link Wed Dec 3, 2008
Joshua Jarvis, Real Estate Pro in Duluth, GA
MVP'08
Contact
You see the ratio thing that Lynn mentioned in new construction and condos. The reason HOAs have it is to ensure that they don't have an "investor" community, since homeowners take better care of their places than renters do. Tell your HOA the other option is a vacant house - which won't be taken care of at all - and maybe, eventually foreclosure. Even if that's not the case, they won't like hearing it, and may agree to look the other way.
0 votes Thank Flag Link Wed Dec 3, 2008
I AM A RENTER AND YOUR STATEMENT ABOUT "since homeowners take better care of their places than renters do". THIS STATEMENT IS UNTRUE. I WILL NEVER BUY A HOME IN A SUBDIVISION. I DON'T SEE HOW PEOPLE BUY HOUSE AND BE TOLD HOW TO RUN THEIR HOUSE. I AM IN PROCESS OF BUILDING MY HOME. I BEEN A RENTER FOR OVER 10 YRS AND TOOK GREAT CARE OF MY HOME AND HAVE A WONDERFUL RELAITONSHIP WITH MY LANDLORD. SHE STATED THAT PEOPLE WITH HOMES HAVE THE MOST NASTY ATTUITIDES BECAUSE THEY ARE UPSET ABOUT BEING TOLD WHAT TO DO WITH THEIR HOME. YOU PAY FOR YOUR HOME AND DON'T NEED NO ONE TELLING YOU HOW TO UP KEEP IT. NO NOT SAYING PEOPLE SHOULD BE UNCLEAN WITH THEIR HOME BUT THEIR ARE DECENT RENTERS. STOP STEROTYPING. MOST RENTERS TAKE CARE OF OTHER HOMES AND SOME HOME OWNERS CAN NOT TAKE CARE OF THEIR OWN HOME DUE TO FINANCIAL PROBLEM. MY HOUSE IS BEING BUILT ON MY OWN LAND AND ALL. I DISLIKE PEOPLE LIKE YOU WHO JUGDE AND NEVER CHECK YOURSELF.
Flag Thu Mar 7, 2013
WOW, sorry to hear this HOWEVER if you HOA has restrictions I would determine if you can receive an exception to the rule. The reason why HOA have limited amounts for if another property wanted to sale their residence a lender MAY NOT approve the loan due to % of property ratio is more rental than owner occupied and HOA has to supply these ratios.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Dec 2, 2008
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