Last week I wrote a post called "If you can't sell it, I'm going to rent it (HUH?)" and this week I have to retract that statement...Well, ok, not completely, but in this situation I did.
You see this seller read this article and gave me a call because they wanted to know more about what I was saying. (Thank you Activerain) After meeting with them, I had to tell them that they should keep the property as a rental and enjoy retirement!
Why did I tell them this after writing that article? They were in a special situation, they were buying a new house with cash and the house they were considering selling has been paid in full for over 5 years now. They could have sold the house and taken the money and enjoyed it, but they didn't need it.
But, if they hired a property management company to manage the property, they could be renting this property for $1300 a month that they could use as retirement income. They could sell this house as is now for $300,000 or they could spend $50,000 updating it and sell it for $325,000.
There other option was to rent the property for $1300 a month for the next 30 years and make approximately $12,000 per year. Then inn 30 years they will still have a house to pass on to their kids and will have made $360,000 in rental income. (That is if they never increased the rent over the next 30 years.)
So, is there a situation that it is better to rent than sell? You bet! And this couple's situation was certainly it. I have to say the referral I got from them the day after I told them not to sell was a great one and I'm taking that listing on Sunday.
Just remember that there maybe many more options out there and your situation may be different than that of your neighbors. So always ask before you make any decisions, because the answer you think may be the best may actually not be.
Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739
Todd Clark and the Friendly Home Team
Knipe Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
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TODD - You clearly put the needs of others ahead of your own, and I'm sure that you will benefit from it greatly. Others could learn from your approach.
Most solutions are not one size fits all. Sometimes you can find one size fits most but then there is that one :)
Todd - You are a smart cookie. Good thinking and great customer service - giving them what is best for them. Kristin
Todd, Every situation is certainly different. It sounds like you gave these folks very good advice and it will come back to you 10 fold.
Hi Todd,
I think every situation needs to be analyzed and then given some options for the sellers to make their decisions. Todd, that was a good call, plus you received a referral, which every REALTOR wants to work with. Nice Call...
;>)
In my area, single family rentals are hard to find so I'm definitely going to start thinking of this more as an option for my clients. It won't make me rich in the short term but I'm sure my clients will appreciate the option.
Todd, I love that you give good advice to your sellers; not just the advice that makes you money! this was a great investment for them and they may as well keep it and do just what you said!
Adam - I'm pretty sure there are more like us out there, the problem is only the bad ones get the publicity.
Renee - That seems to apply to my pants from high school. They used to fit, but no longer do... How sad (LOL)
Kristin - I was just doing what was right for them, I saw no reason for them to sell it.
Bryant - I have a feeling like me you believe in the get by giving philosophy.
Ann-Marie - Exactly, I could have sold the home, but it wasn't what was right for them in this situation.
Jessica - It was perfect for them in this situation and why not rent it when it is nothing but profit for you and your family.
Cristal - I give the advice that I would want to have been given. Basically what was best for me and not the agent's pocket book.