Home Selling in Stafford>Question Details

Ray Loycano, Both Buyer and Seller in 22556

Should I remove the listing for sale and post for rent as I initially intended on doing?

Asked by Ray Loycano, 22556 Sun May 11, 2008

I listed a house in Stafford based on an agents confidence of selling the home for the amount I believed it would sell for in this market that is way below the initial investment with improvement costs. My initial thought was to rent the home but the agent felt the improvements in the home were too extensive to rent it because it looked new and renting it may reduce the value for a future sale. I've had very little traffic in the house and the agent feels open houses aren't worth the effort because prior open houses they had produced very little turnout. My thought is to remove it for sale and list it for rent as I initially intended. There is one potential prospect that has visited the house three times now but hasn't submitted an offer and its been a few days since they last looked at the house. Any advice on what I should do would be greatly appreciated.

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Hi Ray,

What feedback has your 3x out prospect given? If none, can you ask your agent to solicit some? What is your traffic like vs. the other homes in the area? Is it comparable? If not, why not?

In your area with appropriate marketing they had less turnout on the open house? Or, in other areas? Was the marketing in advance?

Could you list it for sale or for rent at the same time? Could you change the sign in the front yard and the marketing on the MLS?

Does this help?

Thanks,
Terri Hayley
1 vote Thank Flag Link Sun May 11, 2008
Is there a chance that you and your wife may want to live in the home later on?

I also recommend listing the property as both for sale or for lease, but I would recommend that your agent contact the potential buyer beforehand to let them know that the house is going to be listed for lease and to gauge their level of interest. Contacting the prospect seems a wise move rather than just waiting for them to find out themselves that the house has been put up for rent.
1 vote Thank Flag Link Sun May 11, 2008
Why don't you do both? It doesn't have to be one or the other. Then take who comes first. If you are thinking about renting you may get a better tenant when they also see it is for sale. Sometimes they think they want to buy it later. I rarely see it happen, but they dream. In the meantime perhaps they take better care of the place if they think it will be theirs later on in life.
Web Reference: http://www.teamlynn.com
1 vote Thank Flag Link Sun May 11, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
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Ray
I reread you question and see you have really asked for more than my initial answer.
You say your agent said that if you did improvements to the home and rented the home it would reduce the value. But you said you have it listed for less than what you have invested in it. I don't do your taxes but most of my landlords understand some redo after each lease can be deducted. A home standing vacant for a year before a sale gives you no deduction.
When doing the improvements don't do things that constantly have to be redone. Put in Tile or another hard surface floor rather than carpet. Have some left over for repair and store in attic.
Now if you are talking about major improvements such as roofing, siding and so on this needs to be done anyway renting or selling.
As for your interested party, if you place the home on the MLS as for sale and for rent, if their agent is on their toes and sees it they will tell them it is time to make a decision or the home will be rented.
If you do rent it, you can leave it for sale. You list it as for investor only, that the purchaser must live up to the lease. You do not have to show a home that is listed this way. YOu state that showing will only be scheduled after an accepted contract and the buyer have an auto option for viewing written into the contract.
Many of our Califorina investors that are looking for rentals in this area search for the ones that are already leased.

I hope this helps

Margaret
1 vote Thank Flag Link Sun May 11, 2008
I would keep it for sale or lease the families are looking to move see which offer comes in first drives in more agents that my have a tenant however could have a buyer
Web Reference: http://www.lynn911.com
1 vote Thank Flag Link Sun May 11, 2008
YOu can list it for sale and rent at the same time. I don;t know why your agent did not tell you this when you listed, it may have helped with bringing an interested party that did not have their financing completely in place yet. Are you on the MLS?
1 vote Thank Flag Link Sun May 11, 2008
Thank you all for your feedback, you all have valid points and have been very helpful. The agent sent me an email me today stating she is having a difficult time reaching the prospects agent. I’m not surprised considering the lack of information they failed to share with the potential buyer or other agent on the house. The only thing they could tell me was that the individuals looking at the house were unsure how to use the heating system and because they were unfamiliar they were hesitant about putting an offer on it. I can understand this to a point because the heating system has the ability to switch totally between electric and oil and can seem overwhelming but it’s not that difficult. I installed the system to work with the domestic hot water and hydro heating system as well as the house having a heat pump. The heating system should have been a key selling point due to its design but the agents failed to listen to me when I explained it to them and couldn’t convey the options of the system to the prospect. The house has been upgraded to the fullest extent to be as energy efficient as possible with new construction windows, polar wall plus siding, new highest efficiency boiler, completely upgraded Kenmore elite appliances throughout, all remodeled bathrooms with efficient toilets… I could go on but it’s senseless, the house was remodeled for my wife and family but as always she has the right to change her mind on where to live… I think my biggest complaint is the agent’s inability to market the house and get more traffic into it. There is a house listed around the corner as a foreclosure and has had numerous prospects looking at it but as with most foreclosures they are easily disappointed at the interior condition. I believe the only option I have at this point is to tell the agent to list it for sale and rent. I believe she will be upset but I don’t feel confident in her ability to market the property.

Again, thank you all for your feedback, I appreciate your comments and suggestions.
0 votes Thank Flag Link Mon May 12, 2008
Margaret, thank you for the response. To give you a little history of the property; I invested a great deal of money and time over the past few years fixing it up because my wife loved the house and wanted to live their. Just last year she told me she wanted to move closer to her parents in FL. I completed the rest of the work on the home but knew I would never recoup the amount I invested into to it but I really don't want to maintain it but there's a limit to the loss. I already moved my family and refinanced the house as an investment loan to be in compliance with the law and mortgage contracts in case I needed to rent it. I had an invesment loan appraisal done for the mortgage and it was a little more then what I anticipated asking for the house but still felt it would be tough to sell due to the foreclosures and market conditions. All the recent work included repainting the interior, new carpet in all the living space, new lighting and electrical fixtures, and new doors and hardware. This doesn't include many of the other improvements but it has top of the line appliances, new heating system, windows, siding, ect... The house primarily looks new inside and out but I still felt it to be difficult to sell so I suggested renting it. Again, they talked me into listing it for sale being very positive about selling it. My main concern is missing the window on renters during the summer months and don't want it sitting idle. I think agent will be upset at the dicission and won't put the effort into selling or renting but I also feel they haven't put much into it up to this point.
0 votes Thank Flag Link Sun May 11, 2008
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