Home Selling in 80525>Question Details

Jesse, Home Seller in Fort Collins, CO

Should I keep renting or start trying to sell?

Asked by Jesse, Fort Collins, CO Fri Feb 8, 2008

I have two and a half years left before my ARM starts to adjust for my 4 bed / 2bath house in Fort Collins. Should I start trying to sell now or keep renting it out for another year or two and hope the market gets better and the house appreciates?

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I believe the housing market has almost run its course in Northern Colorado. Jobs are increasing, commercial is hot, so usually the housing market follows. There haven't been very many new homes built in the last 2 years so the inventory is shrinking. I would refinance while we are in an election year and rates are at their lowest in decades. The housing market will get better and start appreciating again within the next 12-18 months. Wealth in this country is primarily gained through real estate. If you sell, where would you put your money? The stock market is bad and risky, commodities are down, bonds are down. I would stay put as I am seeing the rents are beginning to rise again. I would love to sell your property and I think I could, however if you can refinance and stay put.
1 vote Thank Flag Link Tue Apr 22, 2008
I say let's put that thing on the market. I have seen a lot more showings on my listings, and they are going under contract. Who know what the future holds. I have some concerns about the availability of water in our state, and even with our soft market, I can advertise aggressively to sell your home before things get worse.
Web Reference: http://www.CyrusGreen.com
1 vote Thank Flag Link Thu Feb 21, 2008
With rates so low you might try to refinance the home. I know a ton of great lenders. Contact me if i can help you in anyways. i would love to give you some good lender contacts.
1 vote Thank Flag Link Fri Feb 15, 2008
Jesse,

If you are on the upside with positive cash flow each month, I can't imagine why you would want to sell at this point. If you are in a negative cash flow situation, that's different. You might also want to check into a Re-Fi at this point if your credit score is good. That might help with cash flow.

My recommendation would be to have a Realtor/ Property Manager run both sales and rental comps for you. The results of these comps should give you the answer that you are searching for.
1 vote Thank Flag Link Sat Feb 9, 2008
Do you have nice tenants? Would your tenants cooperate with showings? Would the house show nicely with the tenants in place? When does the current lease expire? Spring is on the way and we notice the activity on our listings is picking up. If the circumstance are right, maybe consider putting your home on the market this spring. If your home sells, great. If you home doesn't sell, you could continue to rent your home out. Best wishes.
Dynamic Real Estate
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1 vote Thank Flag Link Fri Feb 8, 2008
I would talk to a financial advisor and see what would work best for your certain situation. You could do either one because the prices have gone up but it depends on how much you want to net out of your investment property. Rental market is great so I know you proably wouldn't have a problem in keeping it rented and still growing more equity.
0 votes Thank Flag Link Tue Jul 16, 2013
The timing is great to sell...the inventory is low so houses are selling more quickly. Interest rates continue to stay low which is helping our market. If interest rates go up, home sales will decrease. If you are selling a rental you can always increase the cost basis and deduct a depreciation when you sell. Contact your CPA for more details. Bottom line, don't wait. We can provide info on the value if you need! Good luck!
0 votes Thank Flag Link Mon Jan 21, 2013
Whether to sell or not is based on so many personal reasons, it is hard to say. From a monetary standpoint, getting the absolute most money for your property, I would say hold off, at the very least until your current lease runs out. Then get the property into the best shape possible, price it right, and choose a realtor who will market the home aggresively using every available advertising avenue. It is usually much easier to show and sell a clean, vacant property. If you really need your money out now, or cannot take another month of being a landlord, than it really isn't a bad time to sell at all. Buyers are actively looking(and buying), and home values have remained strong in Fort Collins. Give me a call, if you would like to know what your home might sell for if you listed it today, then you could decide if thats enough money or if it is better to wait.
0 votes Thank Flag Link Thu Oct 28, 2010
Jesse, the housing market is as stable as it's going to get for a while. If you are able, I would suggest refinancing your mortgage with the lower interest rates, then reconsider your options.
0 votes Thank Flag Link Wed Oct 27, 2010
Jesse - Great question and there is no right or wrong answer. I own several investment properties in Fort Collins as well so I understand your concerns. Before making any decision, try to estimate how much your ARM will adjust as a worst case scenario. Would you still be able to remain solvent on your investment or will you be losing money? Do you enjoy the tax advantages that go along with owning an investment property? I know I enjoy reducing my taxable income each year. Have you kept up with maintenance on the property? What about upgrades? If you put your home on the market then you will want to give buyers a reason to buy your home and not one of the many other homes you will be competing against. Imagine yourself as a buyer looking at your home. What would you want and expect? Today's buyers expect a lot for their money so you need to distinguish your home from the competition. This could be fresh paint, new carpet or hardwood, or superior curb appeal. Also, you need to determine your target market but your realtor should do this. Is it an investor, first time home buyer, relocation, etc. Knowing your target audience is the only way to understand how to properly market a home. There are 7 keys to home selling success, in my opinion, and you can view them at my blog: http://www.FrontRangeRealEstateBlog.com.

Do your homework before making any decision on the future of your investment!
0 votes Thank Flag Link Fri May 9, 2008
Historically market drops and then swings back up. I would say wait it out, I am in California so I don't know your market specifically, but what I am seeing here, investors are jumping into the homes and once the resident buyers jump in, we all know emotions is what fuels the buying frenzies.
And at the turn when property values increase you can rethink selling or refinancing.
Hope this helps.
0 votes Thank Flag Link Thu May 8, 2008
The answer depends on a number of things. First of all, is your home in an appreciating neighborhood? Does the neighborhood have highly rated schools? Are there more owners than renters? You should obtain a market analysis from a professional Realtor in order to make the best decision possible. Depending on the home's condition, location, price point, etc., it may be in your best interest to sell or to wait. There is no standard answer without having your home evaluated.
0 votes Thank Flag Link Thu May 8, 2008
Vacancy rates are pushing down in Ft Collins, so you may be able to rent it for a liitle more depending on location. How much are you currently renting it for each month? We are in the same situation with our rental property...2.5 years before it adjusts. We'll wait for the market to improve before selling.
0 votes Thank Flag Link Thu May 8, 2008
Get that renter out of there and sell the house!
0 votes Thank Flag Link Tue Apr 22, 2008
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