Lower the selling price or rent out the house for a few years? (appraisal, 3%)

[doctormike]

I bought my house in 2008 and refinanced in October, 2010. The appraisal said it had gone up in value by about 6%.

We'll be moving this summer for a new job. The house is listed at about 3% above the appraisal value - so far, no bites and no nibbles after four weeks. Not even a phone call.

My options seem to be:

• lower the listing price
• rent it out

I don't really want to be a landlord. On paper, it sounds like I could actually make some money by renting, but I won't have time for it and would need to use a property manager. One local agent familiar with the rental market thinks I could rent it for about $400 over my mortgage costs. Yes, that's before any allowances for vacancies or repairs.

Your thoughts? My gut says to sell, but the question is how low to go on the price.

[manderly6]

Are you going off the appraisal done in 2010?

[fallingwater]

I went the landlord route and it was a nightmare. I lived out of state and had to travel back often for issues. The renters finally tore up the place. It was pretty upsetting. I put a lot of love into the place when I lived there. IMO, I would sell and be done with it so I could move on.

[MaseMan]

Originally Posted by fallingwater

I went the landlord route and it was a nightmare. I lived out of state and had to travel back often for issues. The renters finally tore up the place. It was pretty upsetting. I put a lot of love into the place when I lived there. IMO, I would sell and be done with it so I could move on.

Yeah, being a long distance landlord is a bad idea, from what I've read. The exception would be if you know a qualified and trusted individual to be a property manager...but then you have to pay them and that may eat away any profit you would make, and maybe then some.

[Bideshi]

Lower the price and cut your losses. The chance of a recovery in prices is slim and the chance of getting good renters even slimmer.

[lawmom]

I also wonder if you are basing the price on the 2010 appraisal, which would be meaningless now in all likelihood. Do you have an agent or is this FSBO?

We own a home at a distance a rent it out but use a property management company who does everything for us. That is the only way I'd ever consider renting a home out.

[sjuraud]

I got a property manager and rented the place out last month. I'm going to try and wait it out. Of course my area has an average of 50% – 90% loss in prices. So I might as well give it away if I were going to try to sell now. I'm hoping to break even maybe in a few years if possible. Doubt I'll ever see the equity back out of it unless I wait 10 – 20 years.

[Squirl]

S-E-L-L (shouts a LL who is local but not loco; I'd never be a remote, involuntary Landlord)

[manderly6]

And if you haven't done so, take a look at the renting forum. That is probably enough to show you how much you don't want to be a LL.

[Broker Dave]

I disagree with being a landlord is a nightmare, with the right background & financial checks you can weed out the problems.

With banks focusing more on short sales there's a good rental pool of honest hardworking families capable of paying and maintaining a property, research a good hands on property manager.

Hope this helps,