Home Selling in Hillsboro>Question Details

Dg, Home Seller in Oregon

Should I continue to list my home or rent it?

Asked by Dg, Oregon Sat Jun 7, 2008

I own a townhome in the Orenco area of Hillsboro. The home is like new and vacant. Another similarly priced townhome in the development , listed several days before mine, recently sold in just 26 days. My home is located on a greenbelt lot, and is very nice. I have been told only one Realtor has visited/showed the home though there have been over twelve hundred hits on one of the six websites the home is listed on alone. No personal contact or interest in viewing the home despite website interest. I signed a short term open ended contract, as the market is not the greatest right now from what I am told. Should I just go ahead and rent the home rather than continue to list in this market?

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Hi - I did some checking and was able to figure out which listing is yours (I think) and then pulled some similar comps. There's currently 47 attached homes between 1,200 - 1,500 square feet with 3 bd/2 1/2 baths for sale in Hillsboro with a price range of $194,000 - $230,000....11 of those are new construction. Using the same criteria and searching for similar properties that have sold in the area in the past 6 months - there have only been 10 closed sales and 3 were new construction. The price range for the sales cosed between $187000 - $219,400. At a list price of $215,000 - you're right in the middle. It's hard to tell alot from photos, but the only things that caught my eye in looking at your home vs. the competition - your home had a number of steps to get to the front door, most had none. It also looks like many of the other homes may have some upgraded features like tile counters in the kitchen, nicer exterior finishes, etc. Really though - they are all very similar so hard to tell. The only factor I can see is that there are alot to choose from, but very few selling. There were several that noted they were being rented for around $900/m. If you have the ability to rent the property and at least break even - I would consider doing that. I read an article recently talking about the fact that so many homes are being foreclosed on and folks that are losing them are used to living in a home rather than an apartment and they are out there looking for decent homes to rent now and there's not enough good rental homes available at affordable prices for them all to move into. It seems to make sense to me that if you are in the market for a good investment - nice rental homes would be a good way to go. Hope that helps!

Kelly Gebler
Real Estate Broker/Loan Officer
Commonwealth Real Estate/DeMark Financial Services
415 17th Street, Stes 5-7
Oregon City, OR 97045
email: LetUsGuideYouHome@comcast.net
2 votes Thank Flag Link Sun Jun 8, 2008
You didn't say where your townhouse is in Orenco? Try and get the agent to find out any details on the sale? Out of town buyer or was the seller offering a buy down of the rates or appliances all of these things matter to a buyer.There are many units available in the area and I have sold and help rent for my investors many places in Orenco Gardens. My investor just rented a town house for $1200 per month and he rented a single family house for $1250 last fall. It really depends what you bought your house for and what the market says it is worh not what you want? If you don't sell it, can you rent it to cover your payments? Do you want to be a land lord? You will have to pay a property manager to handle the place for you. If you sold where you are moving to, would you buy a home there? You have low interest rates today so don't miss the oportunity to buy when rates are down. I would reduce the price to get it sold and move on and buy something since just about anywhere you are moving to should of have a drop in home values and your dollar will go farther. You didn't say if you will lose money if you reduced the price? Sometimes you just have to move forward and not look back. If you would have sold last spring and bought with rates at 7% your payments would have been higher than thery are today so in a way you are better off to be in this position today. Good Luck

Tom Inglesby, Broker
ABR,CRS, CLHMS
RE/MAX Equity Group Inc
503-495-5416
1 vote Thank Flag Link Wed Jun 18, 2008
Dg, needs to up date his question since it is over 1 1/2 years old. If there is any litigation on any building the lender of the building is probably the only one who would lend on it but Dg does not really say where his unit is? But this was so long ago it probably doesn't matter now?

Tom Inglesby, Broker
RE/MAX Equity Group
503-319-9035
0 votes Thank Flag Link Mon Feb 22, 2010
Mr. David Waite What about the litigation going on with the HOA and the builders? Would there be a problem getting a loan from a bank with litigation going on in Orenco? Since you are a Real Estate professional in Hillsboro,would you care to comment about the necessity of home owners to make buyers aware of this litigation? You did not respond to that in your answer to this question as a buyer I'd like to know the answer regarding this. Thanks very much, H.
0 votes Thank Flag Link Mon Feb 22, 2010
Dg,

At this time, I would advise selling it. You could of course do both and rent it month to month. Six websites? thats not very many....my listings are on a couple of dozen sites at least. I would recommend stepping up the internet presence and lowering the price if you want to sell quicker. Good luck to you!

David Waite
John L. Scott Market Center
503-887-5323 or waite-david@,msn.com
0 votes Thank Flag Link Mon Feb 22, 2010
You haven't mentioned this in your question DG, but Orenco has some pending legal problems that are still being worked out by the HOA lawyers. I feel sure that the HOA has sent you information on this problem. My understanding is that banks may not loan money on homes in areas where there are pending HOA legal matters to adjudicate. Perhaps some of the Real Estate professionals can talk about that as a possible on going problem in Orenco?
0 votes Thank Flag Link Wed Feb 17, 2010
You need to look at a few different things. First, if you rent it, will you have positive cash flow or will you still be negative? Having a vacant property that is not selling is certainly a drain for anyone.

If it doesn't cashflow at rental value or if you simply want to sell it, you need to look at the items which sell a property, particularly those over which you and/or your agent have control. Once you've bought the home you no longer have control over location, and obviously, you have no control over the current market. You do have control over the condition, the price, and the marketing/exposure of your property. Talk with you agent and discuss what marketing has been done, look at the current comparables ("comps") and talk with him about the options and his recommendations.

See the link below for more thoughts on selling properties;.
0 votes Thank Flag Link Sat Jun 7, 2008
DG, It's about marketing, price, location, condition, and presentation. Period. If you home is not getting showings one or more of the five is out of wack. Correct that and your home will sell. If your realtor can't tell you why your not getting the showings switch realtors. If renting produces a positive cash flow consider it. You could lease option or sell with owner terms to generate more interest.
Web Reference: http://www.jamesjwhite.com
0 votes Thank Flag Link Sat Jun 7, 2008
Who cares about hits on the internet. I would only be concerned about people coming to look at the house. Why is it not selling? Does it need to be staged? Is it overpriced?
Web Reference: http://getprequalified.com
0 votes Thank Flag Link Sat Jun 7, 2008
You know Dg, this really comes down to finances. You can keep it on the market as long as you can afford the carrying costs. If you don't want to be out of pocket, turn it over to a property manager and rent it out. As a principal broker and a property manager, I help my clients make that decision based on several factors: rentability, potential income, long term goals, costs vs. income, etc. The Orenco area is very rentable - also saleable. Weigh your options!

Julie Fugate
The Fugate Group, Inc.
Principal Broker
Keller Williams Realty Southwest Portland
(503)522-1900
0 votes Thank Flag Link Sat Jun 7, 2008
As a developer/seller of realestate I would look at the problem in real estate to find your answer. The problem is not home values or the bubble we hear about it is the financing that has done the damage. As a developer I have an increased inventory and my competition is slashing prices trying to get their bank notes paid. The feeder market is scared (first time home buyers, young peops) and thinking that the longer they wait, the better the price. But again the hard part in the market is the loan process not finding the real property. So to answer your question...
I would entertain the land contract or lease option to attract a buyer. There are a lot of buyers out there that would possibly be attracted to this nonconventional financing.
I know it is not what you want to hear, but you may make more money this way. Two other tools you may use.
1. Pay payments for buyer till 09, this will come out as a credit to buyer at escrow.
2. Track your realtors success on other properties compared to the average of other realtors...

Good luck in this market, but I do feel that it will self correct again, sooner than we expect.
0 votes Thank Flag Link Sat Jun 7, 2008
I would recommend repositioning the house for the market. If you are getting that much activity on the web without any actual showings than your house is being rejected for price. If your market is depreciating at this time, then you need to price your house below what the last one sold for in order to get some activity. I would lower the price now and make your house irresistable to all those buyers who have been peaking at it through the internet. You want those buyers to feel a fear of loss. If i don't go and buy that house at that price, someone else will. You want to get your house priced to a point where you will have a feeding frenzy and a bidding war that buyers can't afford not to make an offer. Bidding wars happen in every market and you can make your house sell, you just need to be realistic about the market. Good Luck.
0 votes Thank Flag Link Sat Jun 7, 2008
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