Friday, July 31, 2009

Wow, that was fast...

We made the offer on the condo on Wednesday morning at 10:00, the seller countered and by dinner time we had mutual acceptance! We'll be closing on September 1st. Now we need to figure out what to do about my condo. Do we try to sell it right now in this repressed market, or do we rent it out for 6 months to a year and then try to sell it? Tough decisions ahead. I'm going to meet with our real estate agents this next week and discuss putting mine on the market and see what they think I can get for it, if it's not reasonable, I will rent it out for awhile. I really don't want to be a landlord, but I also don't want to sell my condo for too little. So, even though I know I can't rent it out for quite enough to cover the mortgage and association dues, I think renting may be the way to go, at least for a little while. My fiance can afford the new place on his salary and I can certainly afford my place on mine, so we can swing it for now, which might be the best way to go and hope the market recovers quickly, so we can sell my condo. I don't want the hassle of being a landlord is what it really boils down to. Does anyone have any suggestions or advice on this? Is it really not as bad as I am thinking it will be?

4 comments:

paisley penguin said...

I know we live in the same town and a guy in my complex put his on the market a couple weeks ago. It sold in a week. He said he priced it competitively.

Good luck!

thriftylittleblog said...

Great news! Becoming a landlord could end up costing you-- needing to make repairs/ having the tenants take poor care of the unit. It sounds like it's a good idea to ask a real estate agent how much it would sell for. The nice thing is that you can afford to make either decision!

Chariot said...

First, decide how little you will take for your condo. Consider closing costs and realtor fees as well.

If that number doesn't seem realistic in this market than renting out is a good idea. The trick to renting is to find a good tenant. Condo renting is easy because you don't have to keep up with the landscaping or shoveling.

Price slightly below average for the rental. That gets a lot more people interested and fast.

Require a larger than normal deposit. Require a $60 fee so you can run a credit check--only bother with this when you have decided on a serious renter. And finally, ask for references and follow through on calling them.

Make sure to buy a book on becoming a landlord in IL (or whatever your state is). It will help you make sure you are following state laws, know what you are responsible for, and make sure you don't ask illegal questions of the possible tenants/references. For example: some cities and states require landlords to pay interest on the security deposit you hold.

Chariot said...

First, decide how little you will take for your condo. Consider closing costs and realtor fees as well.

If that number doesn't seem realistic in this market than renting out is a good idea. The trick to renting is to find a good tenant. Condo renting is easy because you don't have to keep up with the landscaping or shoveling.

Price slightly below average for the rental. That gets a lot more people interested and fast.

Require a larger than normal deposit. Require a $60 fee so you can run a credit check--only bother with this when you have decided on a serious renter. And finally, ask for references and follow through on calling them.

Make sure to buy a book on becoming a landlord in IL (or whatever your state is). It will help you make sure you are following state laws, know what you are responsible for, and make sure you don't ask illegal questions of the possible tenants/references. For example: some cities and states require landlords to pay interest on the security deposit you hold.