Should I sell or rent out my house in Irvine? I moved to the Bay Area and tried to sell my house but prices

Asked by Thg, Oakland, CA Wed Mar 26, 2008

seem to be in free fall. My agent miscalculated the fair price for my house and adviced me not to take the first offer. Since then, the offers keep sliding down at 10% of the asking price every week. I can rent the house out with negative cash flow of ~$400 per month, but it will be offset by a tax deduction and repayment to the principal, so I would say it is a wash. Any thoughts on whether the market has bottomed out in Irvine? It looks like it is picking up in Bay Area.

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Luke Hagenba…, Agent, Newport Beach, CA
Thu Mar 27, 2008
I do not believe it has bottomed out in Irvine, but that is an opinion. We usually find out where the bottom is once we have left it. Depending on who you talk to, the general consensus is that this year should drop 4-9%. 2009 looks to be a wash. Many factors could change those opinions (like interest rates jumping up).

Whether you should sell or not is more complicated question. There are some tax-related questions that would need to be answered, like:
How much equity do you currently have in the home?
How long did you live in the home, and do you intend to purchase a property in the Bay Area?

If you would like me to keep you comprised of the value of your property on a regular basis, I would be happy to do so. My office is in Newport Beach and deal with a lot of property in Irvine. Just email me through my profile with the address and let me know what email address I should be sending the information to.
2 votes
Sylvia Jonat…, Agent, Irvine, CA
Wed Apr 9, 2008
As Luke mentioned, renting out your house in the Bay Area has tax consequences, so you need to consider your strategy for the next 5 years. If you know you will not return to Northern California, I would sell the house there at today's price and take whatever equity you have with you to Irvine. Unless you get a great renter, tenants tend not to take care of property that well and you could end up losing value just because your house is a "worn out" rental. It is a scenario most owners do not consider. Not knowing your home's current condition and potential renter I can't say it WILL happen, but it could.
I am an active agent in Irvine, where our office is located. There is a full price spectrum of available homes. I recommend you take a "fact finding" trip down here to determine what works best FOR YOU. Let me know if I can assist you in any way.
0 votes
Hi, , Virginia
Thu Mar 27, 2008
see video below


good luck
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