Having attended at least one listing appointment per week for the last several months, we have had to share our fair share of bad news. In fact, we talk more people out of selling than into selling. That’s the truth. As we have said before, we are in the market of selling homes, not listing homes. If we take a listing it is because we think we can sell it. This is not the market to get what you want for your house, and it’s really not, in some cases, the market to get what you need. If I can paint with a broad brush here, I don’t think I’m going out on a limb by saying that inventories remain high and homeowners remain frustrated.
There is some positive though. This strange market we are in has created a counter culture for the rental market for the landlord and the tenant. It has become harder and harder to secure financing thanks to the tightening credit market so more and more renters are looking to take advantage of the market not by buying, but by renting. What does that mean?
Many homeowners find themselves upside down on their mortgage or simply refusing to take a large loss by selling their home. So, what’s a homeowner to do? Rent it baby! As in the resale market, a well priced rental home rents fast. It’s really a great time for the tenant too because they are, in many cases, able to rent a home/townhome/condo at a discount versus the traditional apartment complex. It’s a win-win for everybody because these new opportunities for tenants allow the landlord homeowner to move on and accomplish goals as well, such as moving up, down, or out of town.
We have been fortunate to work with some smart couples recently that did not let the market scare them. In fact, they are rolling with the punches and maximizing their opportunity. Two couples in particular have already bought or are under contract to buy their “move up” home while renting their current condo/townhome. This window of opportunity to buy in a perfect storm of high inventory, depressed home values, and historically low interest rates will not last forever. The smart buyer understands the economics of this decision beyond the initial sticker shock of two mortgages. A break even on a rental, or even a slight negative cash flow, can pay massive dividends when coupled with a purchase in these times. As said before, money can be made in an “up” market, but a whole heck of a lot more can be made in a “down” market.
If you want to move, but you feel stuck or out of options, let’s talk. We have some great ideas, and we will be happy to discuss the options available to you with no obligation to buy whatsoever. We aren’t here to talk you in to anything. We don’t operate like that. In fact, I think our clients would agree that we are fairly conservative on the risk front. Regardless, we have relevant statistics and ideas to share with you, and we want all of our clients to make the decisions that are best for them and consistent with their long term goals.