i own a home in Solvang which is now being rented. the renters are interested in purchasing it. The last

Asked by Elizabeth Morris, Solvang, CA Wed Feb 6, 2008

assessment a few months ago was less than I paid for the house in 2004. do you recommend I hang on to it or sell it when there is an interested buyer?

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3
Sharon Dal P…, Agent, Santa Barbara, CA
Fri Apr 13, 2012
There is not enough information here to give you an answer that might be the best fit for you. How much do you owe on the property? Are their rental payments covering your cash flow or are you in a negative cash flow each month? Do you have plans to invest in another property should you sell?
Do your renters need to get a loan? Would you be interested in doing financing for them, where you could make more more money from the interest payments than you are making now. Sometimes price can be reduced should you realize the return you could get by doing this and not have to pay property tax's and other costs of owning. Since this is not your principle residence you need to talk to someone who could help you run the numbers, if you sell to them you could be saving in real estate fee's, have an agent do the paper work help with escrow for a set cost less than what many attorney's charge around 10K. Sounds like you have interested buyers now, is their offer way to low? They could be just testing the water and why not counter back to them and work out some terms if you can get them to come up in price? Why would you wait it could be a long time for the market to change.
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Jason, , Santa Monica, CA
Wed Apr 9, 2008
There is no right answer, just personal opinion. If you believe that the market will continue to spiral downward and you need to get your money out, sell it. If you have a the opposite perspective, it may make since to hold it. Also, it is impossible for someone to come on and say you should do one thing or another since there are so many factors like sale price, rental price, debt level, interest payments, loan structure, risk preference, preferred hold period, etc. Trulia should offer you a good starting point in terms of researching your home's market value. If you don't want to do the research yourself, call someone who knows the markets, like a broker.
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Bob Jennings, Agent, Los Olivos, CA
Fri Apr 4, 2008
If you can hang on to the house and continue to rent it would be the best scenario. Locate a local agent who can keep you updated on the prices in your neighborhood and then decide when it is the best time to sell.
Web Reference:  http://www.losolivos.com
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