When the market slows down, we see many home and condo sellers in the Edmonton area, particularly those that have been trying to sell for a while, think about renting the home instead.
On the surface, this make lots of sense. You get to opt out of the market for a while and you receive rental income. However, for many home and condo owners this is a BIG mistake.
First, let’s consider why the home is not selling?
Fact is a well-positioned and correctly marketed home or condo, should sell in less than 60 days in ANY market. If you are not meeting with success, it’s likely because:
- You may need more information about the market, (see our annaul Market Reports here)
- You may need to do preparation, (see this link on preparation)
- Perhaps you need a change of approach, (see this link on REALTOR® selection)
Have you considered the vacancy rates?
At the time of writing, (June 2017) there is an abundance of inventory in the rental market place and rates are way DOWN. You might be surprised how long it takes to find a tenant and how little a tenant will be prepared to pay you in the current market.
And then there is wear and tear
Unfortunately, nothing wears real estate out faster than putting a tenant inside it. I’ve heard too many horror stories of when the home owner finally gets the tenant out, that they discover the house is just a shadow of its former self, with holes in walls, torn up carpet, scratched hardwood flooring and sometimes a peculiar odor that will just not go away.
And finally, who is to say the market will get better? As we have witnessed in recent years, prices could actually be worse in 6 to 12 months’ time than they are today. We just don’t know for sure.
What about rent collection and management?
If you are living far away how will to enforce rent collection if your tenant stops paying? How will you monitor that your tenant is not trashing the place? How will you advertise it? Show it? And arrange for move in and move out?
Our best advice?
If you want to sell now. Sell now! But be realistic with your expectations. At this time of the year, as inventory goes up, you might want to listen closely to the advice of your REALTOR® or face disappointment.
Want more information about our discount and flat fee home selling programs? Please feel free to call our broker owner Stuart Neal at: 780-760-2014 or visit www.FlatFeeRealtyAdvisors.ca
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