Sell vs. Rent/Lease (San Rafael: foreclosures, loans, home)

[G Grasshopper]

My husband and I are newly retired and thinking about moving out of the area in a few months (to Austin, Texas, where our families live). We are considering renting our 4 bedroom home in northern San Rafael, rather than selling, as the market is rather soft. Any thoughts about renting vs. selling?

[bellalunatic]

Renting and managing from a airplane style distance can be a HUGE problem...We rent out a place in Florida and we're here in the Bay Area.
Unless you have someone you really really trust who can handle the day to day landlord business for you I'd strongly suggest selling, plus there is always the wear and tear that comes with renting, that can be a bit hard to bear when you are trying to then get it sold...
It's a tough one, I wonder what other folks here will have to say about it.

[bayarea-girl]

Unless you really have to sell or have a lot of equity that hasn't been affected by the latest housing/economic meltdown at this time I wouldn't sell right now. Texas is really affordable and you should be able to get a lot for your money if you decide to rent or buy.

[alohakat]

Unless you want to hold on to the property for quite a time to come, you will not see more equity in the next 5 years, but you will probably see a bit less equity in the next year or two. There is a huge number of loans that will reset in 2009 and in 2010, and this will keep foreclosures high for the next couple of years, and this will affect your property value.

Either sell now, or plan on renting it out for over (perhaps well over) 5 years, to realize more equity than now. (you are not upside down right? Perhaps free and clear?). If you do sell now, price right for a quick sale, as high pricing will only get you a lower price in the long run as the property grows stale and isn't shown. Price reductions will not be the better route, a fresh great price from day one that gets showings and looks better than it's competition at like pricing will get it sold.