Market Conditions in 55423>Question Details

Kathleen, Other/Just Looking in Richfield, MN

I am trying to figure out when the market took the dive in Richfield and just how much that might be.... I

Asked by Kathleen, Richfield, MN Mon Mar 31, 2008

live between Penn and 35W. I am also interested in opinions about renting out my house until market conditions improve and buying a house with money I had put aside to add on to my current home. We should be able to move up and still put down 20% without selling our current home. Thoughts????

Help the community by answering this question:

Answers

9
Kathleen, I reread your question and thought of this resource which could be helpful to you. I use it quite often. It's a great website! http://www.mplsrealtor.com/the100.aspx

Thanks, Todd Norsted
Web Reference: http://www.toddnorsted.com
0 votes Thank Flag Link Tue Apr 29, 2008
In general, the Twin Cities market topped out in August of 2005.
In Richfield specifically, the average home sale price went from :
2003 $195,271
2004 $211,395
2005 $221,212
2006 $224,389
2007 $215,985
and year to date through March 2008, the average sale figure sits at $177,109.

All of that being said, these are average prices in Richfield and your home may be better off or worse off than average. A careful market analysis by a competent and experienced professional will give you the best answer. As for your plan to rent and move up, that can be a great solution, however, renting can be fraught with difficulties including vacancy loss, tenants who don't pay their rent or damage your property, hassling calls for repairs, etc. If you plan to become a landlord, get some good training FIRST as it will help you avoid many of the perils of renting your property and help ensure it is a profitiable experience for you.
0 votes Thank Flag Link Tue Apr 29, 2008
Kathleen, It's a great time to be a landlord, if your economic situation allows it. Also, a great time for you to buy! I'd say if you can rent your current home with at least a break even situation and buy a new one besides, you're in a great spot! Hang on to your rental, build equity in it, and the future is rosey!

Thanks, Todd Norsted
Web Reference: http://www.toddnorsted.com
0 votes Thank Flag Link Sun Apr 27, 2008
Kathleen,
If you are comfortable with the holding costs of two homes (assuming vacancies over the next few years), I would say do it (so much of this will depend on your financials). I would team up with an agent that is also a landlord, as he/she may give a lot of free help (leases, finding the tenant, credit checks). The rental market in Richfield is very good, so you may want to take advantage of it. I am a landlord, and I do own Richfield properties, so if you would like to discuss further, shoot me an email.......smhutchinson@cbburnet.com .
0 votes Thank Flag Link Sun Apr 27, 2008
Kathleen,

I'm not a professional, just a home buyer and my husband and I are in the same situation. We're looking to move up while prices are good and can still afford to keep our townhome and hopefully rent it out, but if not then things will be tight, but still okay. I guess I don't think having two mortgages is a good situation, but I think if you budget properly that it is possible, especially if you have two incomes. A friend offered this website as a resource for renters and there are lots of people looking to rent: http://www.roommates.com

Good luck!
0 votes Thank Flag Link Tue Apr 22, 2008
Increasing leverage in a down market is the worst possible decision you can make.
0 votes Thank Flag Link Mon Mar 31, 2008
Kathleen,
If you want to be a landlord it's a good plan. It could be a few years before the current inventory is worked through so plan on at least three years of renting the house. On the up side you'll be able to buy a bigger home at todays prices. There is a risk that you'll end up owning two houses that are going down in value instead of one so you need to be in it for the long haul.
Michael Doyle Realtor
0 votes Thank Flag Link Mon Mar 31, 2008
enjoy what you already have
you are taking risks with 2 mortgages
what if it doesn't rent?

anyways

good luck

ps why do you need to "move up"
0 votes Thank Flag Link Mon Mar 31, 2008
I think your best bet would be to find a good local Realtor that can help you in assessing these questions. I think http://www.ActiveRain.com is a great place to start, as you can learn a lot about the agents in that area. Hope that helps!
0 votes Thank Flag Link Mon Mar 31, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer