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Sunday, November 02, 2008

Sellers turning to rent as way to beat the market!

I was reading this morning's Florida Today newspaper. The real estate section had as its main story how sellers are looking at renting homes out during a slow market. This is probably not a bad idea if a seller does not need to sell at this time.

What are the benefits of such an arrangement? Does it work for all sellers?

First of all, the Viera, Suntree, Rockledge (all of Brevard County Florida) has more properties for sale than buyers. The competition is keen. Sellers are competing with short sales and foreclosures. Prices still seem to be dropping although not as quickly as they once were!

Sellers are not seeing these huge windfalls as they once did! And, sellers are for the most part still required to pay that monthly mortgage! Carrying a home while it is on the market can be devastating to some sellers. I have been there myself and it is not fun! At least a little income to offset the cost can be a little relief.

There are challenges to be faced if you intend to continue attempting to sell with a tenant in place.

Will the tenant be on a month to month rental basis with the ability (or desire) to move out if you get a contract? Will the tenant accommodate prospects seeing viewing the property? My personal experience has been it is a challenge to sell tenant occupied property unless your buyer prospect is another investor looking to keep it rented.

Do you just take the home off the market and rent it out for a couple or three years? The general consensus is that prices may rebound a little eventually but not to anywhere near the boom market. Do you just accept the market for what it is and sell at the current market price?

There is no easy answer.

Interested in buying or selling real estate in the Viera, Rockledge and Suntree area (including Cocoa Florida)? Please give me a call. I would welcome a chance to discuss how I may assist you in your efforts. Gary Waters licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida.

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