My condo had been converting from apartments to condos, and is now going rental. Units are still for sale,

Asked by Denise, Issaquah, WA Fri Feb 27, 2009

but sales are slow, and renters are moving in with long-term leases (and very low rent payments). Will this lower my home value even more than the economy has already taken it's toll?

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Norma Foss, Agent, Poulsbo, WA
Sat Feb 28, 2009
Good morning.! I know which complex you are talking about and the short answer is 'Yes', but only temporarily. When the market shifts and the leases expire, the developer will want to sell them. Developers are not in the landlord business. The best advice is to hang in there for a couple years as this phase in the market will pass and home prices will begin to increase again.
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Mark Despain, Agent, Seattle, WA
Fri Feb 27, 2009
In the short term, yes. It depends also on the percentage of rentals. But if you are planning to stay put for awhile the situation will change. The lender or investors did not want to be in the landlord business. As soon as the market turns they will be looking to sell when leases come up.
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SeattleHome.…, Agent, Seattle, WA
Fri Feb 27, 2009
Unfortunately, the answer is probably yes. This doesn't mean that you won't still have a valuable home, though. It's just going to have a unique building situation that will limit potential buyers somewhat.
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Larry & Kathy…, Agent, Issaquah, WA
Fri Feb 27, 2009
I think, in this, economy the situation you describe will temporarily lower the value of your condo. the real concern to me would be the ability to finance if there are a large percentage of renters. The lenders like to see no more than 25% renters. This number will change some depending on the lender. It is time to read your Public Offering Statement and see what it says about number of alowable rentals.

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Kellie Batali, Agent, Maple Valley, WA
Fri Feb 27, 2009
While it's hard to say a definite answer without knowing more details, location, price range, etc... condo developments where the percent of occupants who are renters is high, will typically be less desireable than a condo development that has a low amount of units in the rental pool. In your case, the developer is probably starting to rent out his last units that aren't selling rather than trying to continue to sell them. That means the developer is now the landlord for a lot of units. He will certainly have a vested interest in trying to keep the value of his buildings as high as possible since he continues to own a lot!
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