Home Selling in Scranton>Question Details

Acs, Home Seller in Scranton, PA

To Sell or Lease or Lease Option?

Asked by Acs, Scranton, PA Fri Sep 5, 2008

I currently own a new (1 1/2 year old) townhome in W. Scranton on the Taylor line (in front of McDade Park). I had the home on the market for 6 months with no bites (we were asking $199,900). My family is now getting ready to relocate to Pittsburgh, PA. I would like advice on whether or not I should try to sell if FSBO ($187,900), Lease it out, or try a lease to own option. What seems to be working for the rest of Scranton?

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12
You are in a less than desireable position. I would never suggest a homeowner rent or rent with the option to buy unless they are looking to take on the difficult task of being a landlord. The market was only expected to show a 4% increase the first half of the year which rang true. Second half will show a noticable improvement with a 7% increase which should reflect an increased interest in your home. Knowing the average sale price is higher for a property sold through a Realtor as opposed to a FSBO, I would encourage you to seek an aggressive, experienced agent to sell your home. Renting will have to many potential hazards, especially if you are out of town.
2 votes Thank Flag Link Fri Sep 5, 2008
Acs,

You already received a lot of good, solid information from the other responses. No matter what you read in the national "headlines" homes are selling all around you in our area. Most owners can tell me why they think their house didn't sell. I bet you are no different. I'm sure you have thoughts on why your house didn't sell, while others have. Get yourself a good Realtor, who will provide you with documented pricing recommendations, (follow their advice) and who is willing to truly market your home to get it SOLD!
Thanks!

Paul B.
1 vote Thank Flag Link Fri Sep 19, 2008
Post note...ended up listing this and it just closed. They were the nicest clients I had in awhile.
0 votes Thank Flag Link Fri Jul 24, 2009
Lease it out, and if you need to sweeten the deal to get a high quality tenant quickly, offer a lease with an option purchase. It's a terrible market to sell, so you might as well sign a lease agreement and at least cover your mortgage every month, if not make a little extra.
0 votes Thank Flag Link Sun Mar 1, 2009
I agree with Scott, my advise is to handle it through a reputable local realtor who can get you the best price for your property.-
0 votes Thank Flag Link Wed Jan 14, 2009
I believe you have two options. Either decide to reduce the price and sell it at market value, or lease it and hold onto the property.

I'm not a big fan of lease options because the only one who really benefits is the buyer/tenant. If the home goes up in value, of course the tenant is going to buy it, and if the value goes down, there are going to simply walk away.

Good luck,

Dave Tapper
Burlingame
Web Reference: http://Teamtapper.com
0 votes Thank Flag Link Fri Sep 19, 2008
your best bet is always to sell through a trusted local realtor who can get you the best price for your unit, if you lease it the newness can soon be ruined by people who dont care and dont treat it like an owner would. if you are going to lease option make sure you do the papaerwork right to protecte you and outline what happens if they buy, if they dont buy, how much credit you will gove them if the buy, when they have to be out if they dont buy and what kind of deposit will you take for the purchase part. good luck with what ever you decide.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Sep 11, 2008
ACS
Given just what you mention in your post you have three options:
1. Rent it out
2. Sell it at a price that will sell (that means how much you owe, how much you need to net, or how much you paid do not matter)
3. Don't move.

If you'd like a top Realtor whom you can interview and determine your options and the pros and cons of each, let me know and i can arrange it.
0 votes Thank Flag Link Fri Sep 5, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
I can tell you that a typical home in the city of scranton usually takes 4-6 months of marketing. You should speak with your realtor and have them pull you current comparables (within last 6 months) of townhomes in your development and see days on market, asking price, sold price. Also, if any have sold during the timeyour homes was on the market, why did it sell before yours did?
0 votes Thank Flag Link Fri Sep 5, 2008
Do the LO (lease option) and don't worry to much about long distance ownership. Just have a LSC (loan servicing co.) collect your payments and send you the profit. Some title/closing companys will do this, look for one with a good reputation.Herb
0 votes Thank Flag Link Fri Sep 5, 2008
Acs
in addition to the info that is given below, consider whether you want the bother and responsibility of long distance ownership. If you reduce it or offer seller assistance, does it bring it into the range that is selling?

What if the prospective purchaser defaults (it CAN and DOES happen):are you prepared to return and re-market the property? Can you carry both your new home mortgage and this existing one, and any utility bills if that happens?
If you have equity in the property, it may be a better option to sell now and move on.
Something to think about, in any case.
Best wishes as you make a tough decision.

Mim Heisey
Service with Excellence
0 votes Thank Flag Link Fri Sep 5, 2008
I'm not sure about the market in Scranton, but a lease-option might be a good scenario for you. Ask the buyer for about a $5,000 option deposit, charge them market rent + $200 more, which will go towards downpayment and sell the property to them for your asking price in a year or two. It might be a win-win option.

Even if you find a buyer who will want to buy your house by owner, it doesn't mean that they'll get a mortgage for the house. I would suggest reading and learning more on how lease-options work.

Hope this helps.
0 votes Thank Flag Link Fri Sep 5, 2008
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