Sublet or sell?

Asked by Wintersucks, Fairfield, CT Wed Aug 4, 2010

My mother and I are moving to Arizona to be near my older son and pregnant wife, and to put some distance between us and the weather in the N.E. From what I see in the near future, economically, with a bad decade upon us and little sign of a rebound in home values anytime soon, I am leaning now more to selling her condo off Old Country Road in Plainview and running with the best we can get for it (a Villas unit) as opposed to spending $4000-6000 to make it ready for sublet, milking it for a few years until it increases in value. Zillow has it listed a $359,000. (I know we won't get that - if we're lucky, maybe$310,000 - $325,000). That's about the highest I've seen in a long time. Sell it? Lease it and wait until 2016 or later to sell it?

Thank you!

Russ Gropman
russg101@optonline.net

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5
Anna M Brocco, Agent, Williston Park, NY
Fri Aug 6, 2010
Unfortunately a decision only you can make, based on your wants, needs, lifestyle, finances, etc., as for subletting--much will depend as to you wanting to return to the area down the road, do have someone locally who can keep an eye out while renting, etc.--as for selling--do you need the finances, do you prefer to be worry free from tenants, etc. Keep in mind that if a property is priced on target for today's market and at the same time, if the marketing maximizes your exposure, the unit will sell. For additional information on available and sold properties in the area check out http://www.mlsli.com.
0 votes
Century 21 P…, Agent, Massapequa, NY
Fri Aug 6, 2010
Dear Russ - You need to ask yourself a number of questions. Do you want to be a long distance landlord? After all monthly rental income and expenses - do you have positive or negative cash flow? If negative - can you afford to do it for years to come? Do you have any equity in the house or do you owe more then the property is worth? If no equity - can you afford the hit on your credit rating or do you have the cash to bring to closing? And many more! You need to speak to a real estate professional to help you decide what is best for you. Good Luck
0 votes
Jerry and Ze…, Agent, Woodbury, NY
Fri Aug 6, 2010
Hi Russ,
I have been an active real estate broker in Plainview for the last 29 years and over the years have sold many units in the villas. I agree with your opinion, According to our experts prices will continue to drift lower till late 2011 and will only see the 2006 price in 2018. In addition my personal experience is that it is hard to manage a rental property from a distance.
I am currently marketing a unit in the Villas and I am having an Open House this Sunday at (203 palo Alto Dr). As you are probably aware there are 3 models in the villas The Dorset (ranch model), The Bentley (townhouse) and the splanch model. There are no ranch models on the market that I am aware off and there is a demand for this model. The last 2 units sold for $345K and $350K (good condition). I believe if priced correctly and marketed right you should have no problem selling the unit.
I will be glad to help. You can reach me at 516-355-1132 or E-mail Jerrysilber@hotmail.com.
0 votes
James Ryan, Mortgage Broker Or Lender, Leesburg, VA
Thu Aug 5, 2010
hi Russ, first, I too am helping my elderly Mom, and I appreciate the special dedication and hard work that entails. She also fled the NE winters, from New Hampshire!
You have asked a good question, and there is no right or wrong answer, certainly. You have not really given much data to give a complete answer...So here is what I would answer based on the info you have given.
If you can rent it for positive cash flow (Say a rental payment 20% or more above your mortgage payment), and you have a 3 to 5 year window or more...I might lean toward renting the property and waiting for values to come back.
If you need the net proceeds from the sale for your move, or those proceeds would ease your budget for the move, then by all means, this uptick in the market combined with the low interest rates make selling quite attractive, to my mind.
Best wishes whatever you decide, and if you would like to discuss the vagaries of the market, feel free to call upon me! Jim Ryan, Home Savings of America. 703 591 5626 ext 419.
0 votes
Elizabeth He…, Agent, Agawam, MA
Wed Aug 4, 2010
Hello!

As a Realtor licensed in CT I would advise my clients in your situation that from what I've noticed properties are selling, so it wouldn't be a bad thing if you were to try listing it, especially with the fall market approaching. If it doesn't sell then I'd think about leasing it.

If I can be of any further assistance, please contact me at elizabeth@elizabethherbert.com
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