We are looking to relocate about 20 miles away. Close enough we could be a landlord, far enough away it would be a hassle to go out to the potential rental property on short notice if we decide to rent instead of sell. I am not sure we are ready to take on the task of being landlords though. We are young and have a child and are looking to maybe have another in the future and I'm not sure how being a landlord would fit into our busy lives.
I know the Oxford school district is a huge plus for our house. But these other houses are in the Oxford school district as well, which makes me nervous about not being able to sell again.
The reason I really want to sell would be so we can afford a higher payment on the potential house we buy. The amount of house we could purchase would increase greatly if we did not have to make sure there was still room in our budget for the current house payment too. I refuse to over buy and not be able to afford all of our monthly bills (including the mortage payment on our current home) if the potential rental house sits empty for a few months.
The amount the houses around the area are renting for are close to our monthly payment (maybe one or two hundred above depending on the condition of the house). We will have to refinance if we decide to keep the house and rent it. Which adds more bills and outgoing money for a few months as we save closing costs for that loan.
I know that I will be getting an amazing deal on the potential house we buy in this market. The houses we are looking at are way more than we would have ever dreamed of before the housing market fell.
What would we do if we sold for less than what we owe? Could we roll that into the mortage for the new home? Would we be left making payments on a personal loan?
It sounds as though you already have an idea of what your current home will bring once it is sold and you want to hold on to your 10K. Many home owners are in a similar situation and would like to relocate but are waiting until they sock away more funds. The great news is that the housing market will probably remain in its current pattern for years to come. Regardless of how your property is marketed, fair market value will be a prime factor---I think you've already answered your own question. Good luck!
Unfortunately it is a buyer's market. If they can get a loan, of course. Unless you have a good amount of equity, it makes sense to wait it out right now. Even talking a loss of $500 a month on a rental may be preferable to selling and taking a large loss. Buyers are being picky now.
If you are staying in the community and looking to buy a larger home for your family,in this market you will also be buying at a great price, so the $10,000 loss you feel on one side is a $10,000 or better gain on the other. If you weigh them out it makes it not hurt so bad, If you can buy a house that 2 years ago was worth $100,000 but now you can buy it for $80,000, you have actually gained $10,000 as an investment.
Like I stated earlier, every situation is different and I would be happy to sit down with you and go over these scenerials with you to see what works best for you.
If you are having to sell because of financial issues, there is always that option to do a short sale, which means the Lender would agree to accept what you sell the house for to satisfy the loan and forgive the difference.
If you have any other questions, just let me know, I would be happy to help you., Julie
A big part of reaching that decision on whether to sale or not is gathering the information. Get your Realtor to do a CMA of homes that have sold within the last 6 months, and those that you would be competing against.
Being familiar with the Calhoun County Market, I can tell you that Oxford is a very desirable location due to their good schools.
Smart Way to Market your home - You will have to get your home exposed to as many people as possible. Dont get a Realtor that will only put a sign up in the yard. The best way for this is the Internet. 87% of buyers start their search on the internet. Get a company that is Technological savy and has high internet exposure.
Bottom Line: You need information to make a informed decision. Find out what the market value of your home is, compared to what you owe and then make an informed decision.
It sounds like you should be able to have positive cash flow, or close to it.
The Banks would look at it as an asset as long as you didn't have a big negative.
It is an asset and you want to accumulate assets.
Good luck and may Giod bless