I got on my Gmail account in the early afternoon yesterday, and I found not one, but two feedback emails on House #1. My RE agent set up an accont on Homefeedback.com that allows showing agents to give feedback on a property after they've seen it. Before yesterday, I had a total 5 showings. Of those 5, only 3 responded - and they were all neutral (one actually said it was priced too high). Well, lo-and-behold I get a renter to commit on Sunda, and then what happens? I get THREE positive feedbacks (two yesterday afternoon and one this morning), who thought the price was "At market value", and could submit an offer. I called my agent last night to go over a few things with this bit of good news as the main item, and she asked if I wanted to sell the property more than I wanted to lease it out, which I said 'yes'. She said if things align right, I could still sell it to one of these three interested parties, but it would require the renters to back out for some reason. She said she'll talk to the renters again, but the chances are slim-to-none that they'll back out now. That's just great. :-/ Two months with no interested parties, and then BAM! right when I get a renter in FOR LESS THAN I WANTED. I could possibly have this thing sold for about a $13k profit, but I decided to pull the trigger too soon.
Where were these people 2-3 weeks ago?!?! :-P
[Edit - Has anyone heard from Joe or Mike? Last I saw, Joe had a big deal on the horizon, but I tried going to his blog this morning, and it no longer exists. Mike hasn't had an entry since early April, either.]
6 comments:
Good points. I'm so in a rush to get $$$ to pay off a lot of these costs I've endured, I sometimes forget about the 'patience is a virtue' side of the coin. My RE agent said the renters want to sign a 6-month contract and then go month-to-month after that AND will gladly let me put it on the retail market after the 6-month lease period is up. In essence, having someone paying my bills while the place is on the market. Even then, though, I will need to rethink if selling is the best avenue to follow.
It just keeps getting better ... I just got yet another feedback from an agent saying they have an interested client. The good news, though, is that this tells me the area isn't dead and that my estimates were inline. However, I'm getting the feeling that these interested parties are people looking for houses before school starts in mid-Aug, and we'll be going through another dry spell in the fall. I just wish had several other houses on the market. :-(
I used to work for a major real estate agent in town. I learned many interesting and little-known facts. For instance, did you know that you can sell a house far more easily, and for more money, when you have furniture for the potential buyers to see in the house? It's true. My grandparents tried to sell their very large house for over a year--after they'd moved out. I recommended they talk to one of those places that will furnish a place for you (I think Shaun mentioned this) to help you sell. Well, instead, they had an antiques dealer come and do the same thing, with the understanding that the furniture items would be listed "for sale", too. They sold the house within a couple weeks after furnishing it.
My point here is that you shouldn't worry too much about renting the place. Nikki is right. And, you will most likely make more on the sale with the tenant's furniture in the house. I know you're eager to pay yourself back, but have you considered the capital gains? It might be better for you to wait a year (after the purchase date) before selling.
That's what I like about blogs - people are able to enlighten you about things you've either forgotten or never even knew. I totally forgot about the capital gains hit when selling less than a year. I keep thinking depreciation and debt paydown, but forgot all about the tax side of it. Thanks Trisha and thanks Nikki. I also heard that a nicely furnished home will sell a place faster. I ewill definately check into this when I plan to sell it. I think for now, though, I'll just hang on to this little (very little) gold mine of a property. :-)
Richard - Hah! I am the worlds worst typer, so you're not alone there. I make a post and then have to re-edit several times to get all the spelling and grammer errors out. Most of the time, I just let it go as-is as most people can (hopefully) decipher it. :-P
Isn't it funny how things usually happen all at once? At least you got some good feedback that should ease your worries about listing price, etc.
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