Re: Ron Starr, or other experts?? … - Posted by Frank Chin
Posted by Frank Chin on March 04, 2002 at 07:16:33:
Dave gave you very good advice. My wife was a realtor and tells me that properties NOT SOLD in 90 days is “stale”, and oftentimes, people take it out of the market for a while and then sell it later.
If the word gets out that its been around since last June, folks would think there’s something wrong with it, and perhaps you’re now a motivated seller, which you are. I would’ve rented it out at a reduced rent as of last October at the latest. At least, you would’ve gotten some money in instead of nothing, even if its negative cash flow.
It appears the market may have changed a bit since last June. I placed a property on the market the first week of last August, but for the two weeks after 9/11, the agent advised me things were completey DEAD. So, I pulled the listing, and its been rented.
Also, the market is a lot slower in the winter than the summer. If you couldn’t sell in from June to September, you’ve have a harder time from December to February.
The big problem also is the property is technically VACANT, and you’ll lose the insurance if anyone checks. So renting it out would get someone in there right away, and some money instead of nothing.
I find pricing very important in renting. If area rents are $800 to $900, I place an ad for $795. I did this recently when I tried to rent a SFH on 01/19 for Feb 1. Brokers told me the normal price is $1,800 but moves a lot quickly at $1,750. But for $1,675, I got over a dozen applicant fighting over the place. Obviously, going below $1,700 did the trick. Yes, it was rented within four days for Feb 1.
Similar ads in the paper asking for $1,800 to $2,000 had been in there for several weeks.
The other option is to sell it for 135K or LOWER. But as you had it on the market since last June, BIG MISTAKE, it smells like DESPERATE SELLER, and you might have people low balling you.
If you rent it for a year, then give it another try, at least the market may turn, and you remove the “stale” label from the property.
Unfortunately, it looked like you overpaid for a property too far away from you, and there are not many options.