Hi Summer,

Have you made a decision yet? When priced well, Rio Del Mar homes are selling quickly with multiple offers right now. It's all about price and marketing. Call me to discuss and good luck!

Mindy Greenberg

Hi Summer,
If you need the money from the sale of your property here then I would sell. You definitely will be selling at a bottom of the market price but it's all relative as you will be buying at the bottom of the market as well. It only makes sense to rent out if the rents will pay for your mortgage, insurance, property taxes and you don't really need the money from the sale here to purchase in Southern California. I would then rent out and wait for the market to turn around before selling your home here. I live in Rio Del Mar and have been a realtor for over 13 years and also live in Rio Del Mar and have always found Rio Del Mar to be a very desirable and rentable area. Let me know if you if you need any real estate referrals in the Southern Cal area, I sold real estate there and lived there over 12 years and am very familiar with most of the Los Angeles area. I work with Bailey Properties and am happy to have our property management office give you a call fo further information.

I'm not a 'real estate pro', just a home owner who is a landlord now for a property where I used to live in.
Being a landlord is not so bad. I've been a landlord since 1996 by the way, and one of my rentals was overseas. Really long distance. Makes Southern California look close, hm?

I recently was in a similar position. Tenants of my Capitola property moved. Should I put it on the market? Nearly every real estate agent said 'give it a try'. Of course, that's their business. They don't earn money if we don't sell.
And there is some truth that the rate of return can be bad, especially if you could get a high price but rent would not be so high. This is more true for 'luxury' properties. The fact that your home is custom, maybe has a view.. will mean you get 30% more $ for a sale, but rent will not be 30% higher. Much boils down to what kind of financing you have in place. Do you have a HELOC in place? Get it while it is still your primary residence. US Bank offers prime -0.75% as of today. I have a HELOC at prime - 1.0%
A HELOC is a good way to use the equity without selling the property. (Use it wisely!)

I see your post is 3 months old. Maybe you already sold. Good luck with your decision.

-Peter
ptiemann_2000 at yahoo.com

Summer,

When you move down to Southern Cal, you need to look at your Rio Del Mar home as strickly an investment. And as an investment, what sort of rate of return can you get on it and what are the opportunity costs associated with owning or selling it? Could you plop the proceeds from its sale and make more money in a CD (probably not)? Would the proceeds be invested in other assets or used to reduce any debt on the home you purchase in Southern Cal? Would you overbuy in Southern Califronia because you have a lot of money?
Not knowing the upper RDM market, I would lean towards selling it and assuming that you have capital gains, taking the federal tax exemption on the gain. You definently need to pull in a tax/investment advisor to get a true handle on the benefits of selling or keeping. As agents we can only give you the current value of the property and the likely time to sell it.
FYI, we had a condo overlooking the ocean (on Rio Del Mar Blvd) and sold it because the high HOA dues didn't offset the vacation rents and the long term renters trashed the place. It made financial sense for us to sell. If we looked at it in pure emotional state, we would have kept it because I grew up going over the hill on weekends to play on the beach. By the way, we used Cheshire real estate as our property manager and I was the listing agent when we sold it. Good Luck, its a tough decision.

Hi Summer,
My sister-n-law's name is summer, nice name. I live here in Rio Del Mar along w/ you. So to answer your question with views of ocean, on a lot 8,000 + sq ft **over a million**and price adjustments depends on the ammenities and type views and location in upper rio del mar. I guess you probably didn't just enter the market, and you know a little bit about real estate, to have a home of this size in upper Rio Del Mar. Market is sft but still holding better than most parts of the world, see housing snapshot (I can email you) Lets get together and talk, I just sold a home on Martin Dr. in the $900's 4/3 a few blocks from Rio Del Mar Beach, and (in my opinion, prices are not looking to get better or regain their current value in less than 4-5 yrs. Looking forward... loans are not getting easier to obtain and the ones that are offered at a decent rate are the conforming loan amount (under $417,000) - the 'Bush' stimulous package did little for us here and in higher cost areas. This greatly reduces the demand. However, we are still seeing people with money wanting out of the 'stock market' and place their cash investments it into homes- (some are paying cash now...) So with out many more buyers out there and less money to compete as people dwindle away from the market and use their liquid assets to buy, a couple of years to recoup is optimistic, however, who has a crystal ball right? ...Don't forget what we have seen historically on interest rates, post war, and what happens during and after an election year. Summer, each individuals needs are different and you asked a very general question. In regards to your current position, like I said, lets get together and talk- no pressure. We also do preoperty management.
Sincerely,
(831) 688-3088
Dave Kaemmerling
Broker
Cypress Realty
Rio Del Mar- life resident- 7 yrs experience in mortgage market,
Real Estate is my sole profession.
(831) 688-3088

Timing is the critical issue and where you are in your life path. Are you still building wealth and being conservative about money to build your future, or are you in your future, contributing to children and grandchildren? If you have time to burn, then the next question is how good do you feel about waiting out
potentially five years and being a landlord? You could break even, or come out ahead with tax advantages, but you still may have capital tied up. That could be fine if you are building and want that nest egg tucked away. However, if you are scaling down and moving to be with family or friends, then
overall, the value of the money you pull out of the property now will have more value reinvested or liquid.

In other words, three big questions? 1.Do I want to be a landlord at this time of my life and do I have the skills and temperament for it. 2. What could I do with the proceeds of the sale that would enhance my life right now? 3. What is really at risk if I just sell and move on?

Hi Summer! Sandi McGinnis-Garcia, Realtor, David Lyng Real Estate. If you want to know what rents are in the Rio del Mar area I would be happy to come by and take a look and see if we have a renter for you. We always have clients looking for rentals in the area. If you are not sure about renting vs. selling. You may want to speak to your CPA about it. If you turn your primary residence into a rental and sell in 5 years or less you may be able to defer your capital gain and 1031 exchange simultaneously. Planning for the future can pay off tremendously in tax benefits later. If you want more information you can contact me at http://www.SandiGarcia.com

Hi Summer,

Rain Jordan of Bailey Properties here. I specialize in beach vicinity homes, especially in Rio DelMar, Seascape, Seacliff, and I live in Rio Del Mar myself. I can tell you that I would not rent out my Rio house if I were you, especially custom/remodeled, as you are bound to lose value via renter-related damage and los money in the long run in carrying costs. It is better to sell it and move on, to avoid having to pay continued mortgage payments, property taxes, after-renter rehab, et cetera. You will probably not get enough rent to cover anywhere near your expenses, and your house will probably not be in as good a shape after it has been a rental.

I DISAGREE with the belief that prices in this neighborhood, at least for homes near the ocean, will continue to decline for years. I believe they will begin to recover this year. (See the Market News section of my website for more info on that.) No one has a crystal ball, of course, but that's how things look to me and others at the moment.

Better to price your home to sell than to try to 'time' the market, which is virtually impossible to do. Hire an agent who will pound the pavement daily, make the calls, spend the marketing time and dollars necessary to make it happen for you as quickly as possible at the best price possible. I, for one, work 7 days a week to ensure a fully-enhanced marketing program for my clients. I'd be happy to help you. Call or email me anytime for a chat.

Hi Summer-
Erica Pittman-Gaynor here, of Keller Williams. The predictions nationwide are that home prices could drop 10% this year and another 10% next year before they start going back up. We are typically about 3 years behind the East Coast and they are just starting to go up from the bottom. It could be that your home will be worth quite a bit less in two years and take another two or so just to get back to the value it is at now. If you don't want to hold on to the house for 5 years it is best to sell it now. It is hard to say what fair market value is without getting inside and seeing the location and condition of the house. I can tell you 4/3's in Rio Del Mar are listed at anywhere from 800,000 to 5,000,000. Keep in mind list price tells us nothing only what thins have sold at.
I would be happy to get you a more accurate analysis of your property and share with you my Strategic Marketing Plan that gets houses into a multiple offer situation. Please don't hesitate to call or email me with any further questions. Hope this helps-
Have a great day:)

Hi Summer, Michele gave some good advice on whether or not to sell. Every individual case is different, and your tolerance level for being a landlord has a good deal to do with it.

Whatever your decision, please let me know if you are thinking of purchasing in the San Diego area. I have lived and worked here for over 27 years and know the area well. I'd love to help you find the right home.

Sincerely,
Patti Phillips
800-680-9133

Hi Summer!
I don't profess to know your particular Market in Rio Del Mar, but as a general rule of thumb I have the following advice.
If you have owned your property for quite some time and have some good equity in it and you don't want the "headaches" of renting it out or holding on to it, I would suggest selling it before you purchase in Southern Callifornia.
If you have recently purchased it and would be selling at close to a loss and you CAN hang on to it and still purchase in Southern Cal, then I would suggest that you do hang on to it. Prices WILL be going up again, but not for a few years (in my opinion). So if you are comfortable keeping your property then by all means do that. One comment that I hear over and over in my business is "if I just wouldn't have sold my house 5 years ago, look what I could have sold it for now!!!!"
If you fall somewhere in the middle, one thing I tell my Clients is this. Even if you have to sell your property at a "break even" price just remember that in all likelihood you will be purchasing a property at a good price when you purchase in Southern Cal, so that will even out your position.
Anyway you look at it, the most important advise I can give you is to set yourself up with a GOOD Realtor as your Listing Agent in Rio Del Mar and a GOOD Agent as your purchasing Agent in Southern Cal.
If you are going to be looking in The Desert (Palm Springs, Rancho Mirage, Palm Desert, Indian Wells, La Quinta, etc) or even the San Diego areas I would love to help you.
If you are going to be purchasing elsewhere in Southern Cal just contact me and let me set you up with one of the Agents I know in that area. I have quite an extensive list of people I work with. Also if you need some help finding a GOOD Realtor in Rio Del Mar, let me know and I can help!
Hope this was helpful!
Michele M Mayer
760-835-5391
mmayer@windermere.com http://www.MicheleMayer.mywindermere.com

Whether to rent or sell depends on your long term plans. Although prices have been flat to down in the area, there is still high demand for nice homes, especially in the RDM Elementary district. We've seen some surprisingly fast sales, even multiple offers, when homes are priced right. At the same time, prices in SoCal are way down, so this might be your best opportunity to buy up or retain some cash from your sale here.

Rental ranges can vary so much depending on amenities, views, location, etc. No one can give you a realistic estimate of rental or sale value without seeing the home. If you'd like me to view the home and offer my input, please contact me via my website, below. Good luck with your move!