What about renting instead of selling? (Phoenix, Surprise: real estate market, foreclosures, renters)

[jco]

My hubby is finishing school in March, and we plan to move when he receives a good job offer. It could take a month or a year, we don't know. We were, at first, very worried that we won't be able to sell our house and have to turn down the job offer, but if people aren't buying, does that mean the rental market is doing well? Can we just rent it out for a few years until the market picks up? We have family in the same neighborhood who can check up and the mortgage payment is about what houses rent for in our neighborhood. We did put 20% down and never took a second mortgage, so we could sell quickly if we were willing to lose 10-15k of what we put into the house. What would you do? BTW, we're in Surprise (if that changes things).

[PhoenixRT]

yup i would rent.....as a buyer i have seen the amazing amount of houses on the market....so many it makes it hard to choose what houses to even go see let alone put offers in on. For our criteria there are hundreds of houses we could potentially view....what are the chances in this crazy market your one house would be the ONE....unless you can sell super cheap and get lower than the tons of foreclosures out there i would say just rent it.
We saw 30 homes in one weekend recently...only 3 were occupied...90% of the homes we saw were vacant foreclosures priced well below what the currently lived in homes were going for.
Lots of buyers are talking about renting for a year or more until we see what is going to happen in the valley area in the next year or two.

[Ponderosa]

Originally Posted by PhoenixRT

yup i would rent.....as a buyer i have seen the amazing amount of houses on the market....so many it makes it hard to choose what houses to even go see let alone put offers in on. For our criteria there are hundreds of houses we could potentially view....what are the chances in this crazy market your one house would be the ONE....unless you can sell super cheap and get lower than the tons of foreclosures out there i would say just rent it.
We saw 30 homes in one weekend recently...only 3 were occupied...90% of the homes we saw were vacant foreclosures priced well below what the currently lived in homes were going for.
Lots of buyers are talking about renting for a year or more until we see what is going to happen in the valley area in the next year or two.

Doesn't that mean that there are a zillion rentals out there too as competition? I think a lot of sellers are saying "I'll just rent it till things improve." But when many do that the rental market gets saturated too.

[Magnum Mike]

If I were in your situation, I'd probably rent the house out, but you also have to keep in mind that you'll be the landlord and you'll be responsible for whatever happens in the house like repairs, and in some cases upkeep of landscape. Remember also that tenants in your house will be like the typical people who rent cars, if it's not theirs, they may abuse it. That's why it's important to make sure the tenants are the decent and the responsible type, who can be trusted with your house.

[sablebaby]

Originally Posted by Ponderosa

Doesn't that mean that there are a zillion rentals out there too as competition? I think a lot of sellers are saying "I'll just rent it till things improve." But when many do that the rental market gets saturated too.

When the market was hot, the rental market was saturated (especially Surprise). I can only imagine what it's like now.

[Bummer]

Sorry, jco, I'm gonna disagree with the others on this one.

I have been a landlord a couple of times mainly due to a similar situation you describe . . . NEVER AGAIN.

Being a landlord, especially a long distance landlord, can be a NIGHTMARE.

Hope and pray for the market to improve before you need to relocate or postpone your move.

Good Luck!

[Valley Native]

Originally Posted by Magnum Mike

If I were in your situation, I'd probably rent the house out, but you also have to keep in mind that you'll be the landlord and you'll be responsible for whatever happens in the house like repairs, and in some cases upkeep of landscape. Remember also that tenants in your house will be like the typical people who rent cars, if it's not theirs, they may abuse it. That's why it's important to make sure the tenants are the decent and the responsible type, who can be trusted with your house.

Absolutely right! Property owners need to make sure no questionable tenants occupy the residence ... and they also need to make sure the appearance & upkeep of their own proprety is well maintained as a consideration to the rest of the neighborhood.

Granted, there are some horrible homeowners, just as there are some good, respectful renters. However, the majority of the time when houses are occupied by renters, the neighborhood goes into decline. Why in the world would anybody have a desire to rent, when owning property is part of the American dream? Renting usually attracts the lower class types which most decent neighborhoods want to keep out.

[jco]

Valley Native - Our neighborhood sold only to individuals living in the house, so we have few renters. I don't want to be party to ruining the neighborhood, especially since it's such a good one. I just don't know if it's better to lose money in the deal and get out or rent out until we can sell faster. Thanks everyone for your input! I'd love to hear more...

[country pride]

First of all, with the real estate market in the sad position its in now, many owners are resorting to renting, just to keep up with the payments. And you can specify in your rental agreement, who is responsible for what. The lawn, who pays water and trash, who pays basic cable, etc.
I could suggest going through a rental agency and let them handle the footwork, screening people, etc. and they know the legalities of renters laws, owners laws, and so on. They might ask for a small percentage for doing the job, but, its worth it, to make sure the right people get into your place.

[sablebaby]

Originally Posted by Bummer

Sorry, jco, I'm gonna disagree with the others on this one.

I have been a landlord a couple of times mainly due to a similar situation you describe . . . NEVER AGAIN.

Being a landlord, especially a long distance landlord, can be a NIGHTMARE.

Hope and pray for the market to improve before you need to relocate or postpone your move.

Good Luck!

I agree with you Bummer! I wouldn't want that headache. Just think if you can't get it rented for months on end? Thousands of rentals just sit empty. And if you do rent it you have to worry about what they are doing to your house and if they will pay rent. Eviction is not pretty and takes a long time. I don't think you ever get your money back if they walk away.