In your situation I would also, as many others have mentioned, suggest you talk to more than one realtor because you'll get different ideas from each.
I would gain insight into how to work with the tenant during the sale ( if you decide now is the time to sell) including communicating your intentions, gaining their cooperation, possible considerations of termination of their tenancy or continuation even after the sale, as well showing activities, etc.
I would gain insight into your exit strategy. I would expect that looking at a 1031 exchange would be in your best interest to consider, and learn about.
I would gain insight into how a realtor might market your property: how to advertise to the correct market segments, maximize its exposure and negotiate the highest possible price and terms.
That would be time well spent to educate you and see if now is the right time for you to sell, and who you would feel most comfortable to work with. You have a lot of experienced realtors here that could help you.
And personally? I expect the market is going towards a high and will readjust again when the interest rates start to rise so you have a window to take advantage of... you're at a good time to educate yourself and figure out your best strategy. Good luck!
Rick Otto & Associates
Rea Estate Sales and Property Management Services
Masters Club Member
Better Homes & Gardens RE
1819 K Street #100
Sacramento CA 95811
If you are still on the fence about selling or renting it again, you could try a dual track strategy.
Agents will advise against it, because we hate the idea of getting a tiny leasing fee, when we are really hoping for a sales commission. The thing is, when that real estate sign is out there, we'll wind up getting both kind of calls.
It would probably rent quickly, within a few days of putting it on the market. A sale at market value could take longer, maybe a full week!
Just kidding, It won't take a full week.
"Ask the Realtors you talk to how many home sales they have closed in the last 12 months and last 24 months."
Who would you rather list with: The agent that sold 50 out of 100 listings: 50% success ratio
or the agent that sold 18 out of 20 listings: a 90% success ratio?
Sheer bulk of numbers of sold has always been promoted by mega listers since they thrive on volume.
The agent that will do the best job individually for you might not be a mega lister, might be a small office, hands on, Realtor instead.
In a normal market, the seller who thinks he wants to sell, does not.
Only sellers who know that they must sell, do.
This spring of 2013 is NOT a normal market.
In today strong sellers market, properties attract offers whether the seller is highly motivated or not,
That is why 16 agents hopped on your inquiry within a few short days.
In ordinary times,agents want to work with "motivated" sellers, because unmotivated sellers find ways to avoid getting their property sold.
In today's market, this is much less important. A "market price" listing might produce ten bids, a higher priced listing might only get a couple of offers. -
The point is, even listings that are priced over the competition are getting some action, so there is no need to probe the fullness of your motivation to sell. The buyers have enough motivation for both sides.
Still, I miss the old days a little bit, I would want to ask you to consider the possibility that continuing to hold the rental property for income, tax advantages, and appreciation might be more advantageous to you than disposing it, at this time.
Of course that is not advantageous to me, because I would not be getting a commission out of you.. - this time.
But if you liked the advise to hold the property through to gain more value through appreciation, you might decide to list with me at the point when you really need to sell a few years later.
It looks like you have a lot of great answers here. You can always conduct some phone interviews and ask the questions that are most important to you. Based on the address of your rental home, comparables can be pulled and an estimate of value can be given. The tenants do not have to be disturbed for this part of the process. If the number is close to what you want, and you want to move forward, I can help you proceed from there.
Feel free to contact me if you have any questions.
Lyon Real Estate
Let me know if you need assistance, I live in the area.
If you'd like to know more about myself and how I help lots of home owners like you, I can be reached directly at 916-241-8788 or http://www.morganlarson.com.
I have been in the business for more than 30 years, and this is the trickiest market I've seen in the three complete cycles of ups and downs I've worked through, and survived.
Someone that has dealt with rentals themselves, so they know how to work with your tenants.
Rick Otto and Associates
Real Estate Sales and Property Management
Over 30 years Experience
I thought I'd chime in here with my 2 cents.
When you got your opinion of value from the property manager I'm sure like many agents they used the "closed sales" to arrive at a value. Those sales were escrows that were initiated probably 30-120 days prior to that close date.
I just did a comparable sale analysis for a property that we manage in the same zip code on Atlanta and those comparable sales were all over the place when it comes to sales prices.
I know many of those closed sales were short sales. They had been Pending Sales subject to the short sale approval and in escrow working for a long time and that just closed.
I bet the same situation exist in your case were recent closed sale that give a lot of weight to the value you got.
Since we are in a rising market now, I also look at the Pending Sales and "Days on Market" to help give me an idea of value.
Regarding your tenants. Any sale will be subject to the tenants rights of course and if they have been there for longer than a year, they get a minimum 60 days notice. If you do decide to sell, chances are you might sell to an investor anyway that would want to keep them renting.
Like Mr. Bruce Slaton, we have the "market snapshot" function on our website as well. You can also search for homes in that same zip code yourself on our site and see what other homes are being priced at.
Don't forget... about the capital gains treatment you'll have to face and the nice fact that you might have to pay 3.3% tax with holding to the nice folks at the State of California.
How long have you owned this property by the way...? I was just curious.
And one more thing... you can always get a 2nd or 3rd opinion of value from another agent or broker.
Let us know what you decide to do.
In the mean time...?
Make it a great day...!
But, few quick answers:
Someone that knows the area and is quick to respond to you.
Understands the market and how to get you top top dollar. This market is moving fast, you need someone who knows how to negotiate for you.
You will want an agent that understands lending as well. This way they can speak directly to the Lender regarding how well qualified a prospective buyer really is. The worst thing you can do is to get into contract with a buyer that their loan does not go through after being off the market for 2-3 weeks.
I would love to set up an appointment to speak to you on the phone and help you with this.
Connect Realty Inc.
Over 23 years of experience
in Real Estate Services
Sales / Insurance / Mortgage Training
Dept. of Insurance # 0H71400
Dept. Real Estate # 0104820
Currently in 95841, there are only 10 listings!! That is not very many--good for you and values! But only a real valuation report will give you a value. And 95841 can be the more popular zip code in Foothill Farms.
I've lived and sold in the area, so let me know if you'd like my help!
We have a free system called Market Snapshot that we offer on our site at http://www.eCurbRealty.com (its on the right side bar), you place your address and info there and within 30 minutes you'll get an email with a map feature showing exactly what is selling and what has sold close to your home. This is a no obligation system that we offer to consumers and our clients love them.
A couple of things you should get information on while you are considering selling:
1. Is the tenant on a lease or a month to month? If on a lease and if you expect the new buyer to keep the tenant, you limit your buyer pool and remove owner occupied buyers from the buyer interest pool and it will limit your chances at the highest sales price possible. If the lease is coming to an end, that is a good option or convert them to a month to month while you are thinking of selling.
2. What will you do with the proceeds? If you are in an equity position you should consider a 1031 exchange which could limit your tax liability and you would use the proceeds to purchase an investment property elsewhere or closer to you. For more information about a 1031 exchange, I recommend http://www.IPX1031.com
3. What is the condition and upgrades the home? This could be a reason for the difference in price as well. The better the condition the better buyer options like FHA, VA or Conventional buyers.
4. If you would ever want a more solid 2nd opinion of the value of the home, feel free to email me at bruce@eCurbRealty.com. I have been doing values for banks for many years and am familiar with adjustments and some of the red flags that may come up which could save you money long term.
Do your research and feel free to email me any questions
Bruce Slaton CRS ABR ePro
Realty World eCurb REALTORS
BRE # 01305148
I am a top producer at Lyon Real Estate and own three rentals including one in Foothill Farms and two others in Sacramento Rosemont. I would love the opportunity to sell your home.
Michelle Thompson, Realtor, SFR
EDCAR Top Producer