Home Selling in Santa Clara>Question Details

Winston,  in San Jose, CA

My town home is in market for 60 days. Should I wait or lease it?

Asked by Winston, San Jose, CA Tue Nov 6, 2007

People like it, but having problems with loan qualification. I reduced the price a week ago and increased the buyer's agent's sales commission from 2.5 to 3%. Still no serious buyers.
I need plan B and want to explore the possibility of leasing to companies. How do I go about making my home available to companies? Are there agents who deal with this or web resource available? Thanks in advance for your comments.

Help the community by answering this question:


If your reason for wanting to lease or rent your home is because you cannot continue to make the payments, you should do something immediately so you won't lose your home. There are many property management companies who could find a renter for you, or your own realtor may be able to list it on the MLS to find you a renter. Good luck.
1 vote Thank Flag Link Fri Dec 28, 2007
Winston, Why the panic afer 60 days on the market? We used to regularly hit 6 months on the market years back when the market was "normal". Too many folks are used to multiple offers in 2 weeks! Get OVER IT! Problem we have with most folks nowadays is they all want to "Try" and get top dollar with the lest amount of brokerage fee offered and then wonder why they languish on the market.
When the home first hits the market you have all those "A" buyers out there waiting for the next great home to come along that they wish to eliminate from their search. Many Sellers make this real easy by listign too high ("can't we just try it at that price for a month?") and then DE-MOTIVATE the selling agent community at the same time! You offer an "A" buyer a "C" buying experience and wonder "what happened!"
Weak agents allow this to happen more times than not. Instead of fighting this off (yes, I'm guilty at times too!) we meekly say, "O.K.--I'll be Mr. wimp and let you dictate how to foul up the marketing of our house!" Now that you NEED to sell your competition has used your high price and low co-op fee as a means for selling THEIR house.
1 vote Thank Flag Link Thu Nov 15, 2007
I applaud your resourcefullness. The buyer that sees your home will be brought by another Realtor 90% of the time, so increasing the commission is a great idea. What feedback have you had from buyers or their agents?
How many homes ,.like yours, have sold over the past 60 days? Buyers always buy the properties offering the most perceived value. What can your Realtor suggest to make your home appear more valuable? Offer a buy down program? That would be great! And INSTANTLY make your home more affordable.

So far as renting goes, my wife and I became "accidental investors" in the same situation. Your are welcome to email me off list for specifrics, however I STRONGLY suggest that you discuss your options with a CPA. This could be an opportunity cleverly disguised as a problem.

Been there, done that!
1 vote Thank Flag Link Tue Nov 6, 2007
Keith Sorem, Real Estate Pro in Glendale, CA
Winston, Please ignore Michael Roberts math mistake. the fact that you increased the amount you the seller are offering to a buyers agent will have no impact on the buyers costs.
Although the buyer and his lender bring the money to the table at the close. It is still the seller who pays the fee according to the HUD-1 settlement statement.

There have been numerous Trulia threads and posts about who pays the fee. - Its the seller.

Michael has a pointless point that the buyer doesn't care whether you pay the buyers agent 2.5 or 3.
But he is wrong again when he claims it will not sell a home faster in any market. Agents do care

There have been numerous posts in Trulia about why a standard fee to buyers agent such as 3% will generate more showings than a substandard buyer agent fee. I will be creating a new thread soon on that topic with statistics to ponder.
1 vote Thank Flag Link Tue Nov 6, 2007
Jim Walker, Real Estate Pro in Carmichael, CA
What does your agent say? Let's review your question.
1) It's been on the market for 60 days. You wrote your question in November so you listed at the beginning of the slow selling season.
2) You reduced your price a week ago and increased the commission. No Serious Buyers. It's only been a week.
3) You need a plan B. Why? Is it financial? You found another home? Job Transfer?
4) I would recommend looking on Craigslist.org to see what similiar condos rent for. Keep in mind there are California laws on tenant rights and once you put a tenant in there and you decide to sell it will be difficult. Also talk with a property manager.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Thu Jan 10, 2008

Although rents are going up, leasing your home to corporate investors (or anybody for that fact) only delays the inevitable. You want to sell your home and move on. You need to price it correctly (less than last sale and better than anything on the market that it compares to...all things being equal). It needs to have appropriate exposure (mls, savvy web exposure, and through networking w/local agents). A minimum of 3% buyer commission is required. You need to have the house show like a model with all work done prior to putting IT on the market (ie. fresh paint, new carpet, no smells and staged). If there is section one work in any of the bathrooms, it might make sense to do a minor redo to make them look better and to get rid of the section 1 work. I would also look into possibly buying down a buyer's loan to make it easier for them to get into it. Your house is bordering on becoming stale for the market, you must get more agressive and look at it from a buyer's view. If you were a buyer and wanted to buy your home, what is it that is stopping you from doing it? Good luck.
0 votes Thank Flag Link Thu Nov 15, 2007
I always ask my clients who are considering leasing a property that they purchased for their own use. Is this the best real estate investment you can make for the value of the property. They typically answer immediately with a NO. That answers the questions about leasing. Investment properties are rarely something purchased for their own use inititally. I agree with the earlier answer about consulting a CPA - your individual situation could make keeping your town home a wise idea. Your REALTOR should be able to put you in touch with one who can answer the question.

Your REALTOR can have a mortgage lender help you with qualifying potential buyers. Many buyers simply don't take the time to explore the many options out there for home ownership.

Good luck!
0 votes Thank Flag Link Wed Nov 7, 2007
Winston, take a hard look at your home. How does it show to the buyer? The condition of a house is very important to a buyer and the first impression counts the most. You might need to re-arrange your furniture, paint a room or two.

The other factor might be the price. Is it priced right? What were the most recent sales in your area? How did these properties compare to yours? If you are not sure as to the price, have the property appraised (since it has to be done anyway) and list it at the appraised price.

The third factor is location. If it's not in a good location or in a stable neighborhood, price accordingly so that you could sell and get on with your life.
Web Reference: http://suzekelly.com
0 votes Thank Flag Link Wed Nov 7, 2007
Hey Winston, If you want to make your TH a Corporate Rental you need to call HR depts and ask them if they have interest. Through my experience, you will find they only pay below market rates. There are contract apartments that rent blocks of units so, you will have a bit of homework. No good deed goes unnoticed. though. You may hit an HR with the need for a JR Exec unit. ???? Increasing your Broker Coop to 3% will not sell your home faster in any market because the buyer doesn't care what you are paying their agent. If your TH was listed at $500K you only increased the price the Buyer has to pay because now, you have to pay the Coop increase. No boon there. There are different strategies. Amir poses a good question Days on Market(DOM). If you have not reached that number yet..Well, there may still be time if your price is right.
San Jose Town home average is around 77 days right now. I wonder what rents are in comparison to you mortgage. Do you know? If you need anything ..Let me know. Good Luck to you!

0 votes Thank Flag Link Tue Nov 6, 2007
Where about is your town home at? How long is the average time that it takes to sell a town home in your area?

0 votes Thank Flag Link Tue Nov 6, 2007
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