Weekly I receive calls from homeowners who need to make tough decisions about listing their home for sale. In today’s market this may mean selling below the amount of their mortgage. If the market value of the home is less than the mortgage on the home, another choice may be leasing their home.
For some, leasing their home instead of selling is not a good option but may be the better of the choices they have. I’ve had sellers who tried the leasing route. They come with many stories. Renters who move in and do not pay rent. Renters move out leaving the home trashed. This is certainly not an indictment of the rental market but only a word of caution.
These homeowners may have been best served by hiring a leasing management company. Of course, you can get an great tenant who takes excellent care of your home. Taking your time and doing the necessary checks before the tenant moves in can save you heartache and dollars in the future.
The problem facing many sellers is that they cannot charge a high enough monthly lease to cover their mortgage payment. Each month they face a deficiency. The question I ask is, ”If you sold your home, and had to bring a certain amount of money to the closing table, how much would that be?” Compare the cash needed to close with the cash needed to supplement your monthly payment. At the least which will have cost you the most?
If the seller cannot afford to supplement the monthly mortgage, is not in a position to lease their home or does not have the cash to bring to closing, the seller may be at a point of considering a short sale.
This will be possible only if the seller meets certain criteria. Contacting an agent with expertise in short sales might be your best course of action. Look for an agent with a designation representing a commitment to handling distressed properties, such as the Certified Distressed Property Expert (CDPE). Discuss your options with this agent and develop a plan of action.
If none of the above circumstances apply to you and you are ready to make a move, then as a seller you are in the best position you have been in for the past four years. Inventory is down and demand is increasing. Buyers are aware that the day of the deal may quickly become history.
Open House Sunday, August 12th 2 p.m to 4 p.m. 4164 Ancient Amber Way Peachtree Corners in the Amberfield Subdivision
New on the Market 4979 Young Arthur Terrace, Peachtree Corners in the Wellington Lake Subdivision.