Stacey-Ann's Blog

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To rent or not to rent?

In my first blog Selling My Own Home I talked about what it was like to live with my home on the market.  So we've had the house on the market since February, done a couple price reductions, made sure that it showed well.  All that and we've had consistent showings, great feedback but no real action (we did have 1 offer for $65,000 below list price).

We were getting down to the wire so I decided to put it up for rent.  I listed it less than 2 weeks ago.  That night I had my first call from someone who had seen it as a buyer.  The next night we had a couple come see it.  Since then we have had a revolving door.  We've had as many as 4 different showings in one day (and that was a random Thursday), and 2 rental applications.  We accepted one really great application and can now begin the process of packing up to move.

Is it just me or are others of you finding the rental market to be quite hot?  I checked in my neighborhood and all the houses that have rented this spring did so in less than 2 weeks.  I just applied for a rental for one of my clients and they were competing with 9 other applications, WOW!

What do you think might be driving this rental frenzy?

If you or someone you know would like information about buying, selling, or renting a home in Prince George's, Montgomery,  Charles, Calvert, Anne Arundel, Howard, and/or Baltimore Counties please contact Dr. Stacey-Ann Baugh of Century 21 New Millennium.

 

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Dr. Stacey-Ann Baugh

Century 21 New Millennium

www.LiveinPGCounty.com

staceyannbaugh@gmail.com

240-481-3565 (C)

202-546-0055 (O)

 

FINALLY!  A DOCTOR WHO MAKES HOUSE-CALLS!

 

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Comment balloon 16 commentsDr. Stacey-Ann Baugh • June 23 2008 09:45PM

Comments

People are renting when they are not able to buy. We see people who are trying to grab a rental before they lose their home and foreclose... renting while they still have some credit. This likely is pushing up rental interest more than usual.

Posted by Bob & Carolin Benjamin, East Phoenix Arizona Homes (Benjamin Realty LLC) about 10 years ago

I agree. I am doing alot of home rentals this year, & it is very hot. However, this has not really driven up rental prices, since there is so much inventory, & alot of choices. Many motivated owners ( some desperate) are trying to get out from under a "time-bomb" loan. It is a great time to rent, and owners are less picky about perfect credit & small pets.

Posted by DEBORAH STONE (PACIFIC HOME BROKERS, San Diego, CA) about 10 years ago

Bob & Carolin - I guess you are right because once that foreclosure shows up its really hard to get anyone to accept your application.

Deborah - I am actually seeing the opposite of what you are seeing.  The rental inventory is quite low and people are being very choosy about credit here. 

Posted by Dr. Stacey-Ann Baugh, A doctor who makes house calls. (Century 21 New Millennium) about 10 years ago

A rental bidding war!  We are having them here too.  The last few leases I've written have been on a first come first serve basis to avoid bidding wars.

Posted by Lisa Friedman, Central New Jersey Real Estate (Alliance Realtors) about 10 years ago

Stacy-Ann

Wow, it is really fairly easy to make money in SD with rentals right now. Sadly, Loads of homes, lots of tenants.

Posted by DEBORAH STONE (PACIFIC HOME BROKERS, San Diego, CA) about 10 years ago

Buyers are afraid to buy............to get a mortgage is very hard even with good credit, not to mention people with boarderline credit........can we say down paymetn, closing clost and no 100% fiancing any more.........

Also in my area the military will ot buy, but just rent as they will have to hold a home 3 years ot break even........

so they all rent.........

Elaine

Posted by Elaine VonCannon (Coldwell Banker Traditions) about 10 years ago

Military are great tenants. Has anyone heard of the website AHRN? I use it all the time to attract military tenants.

Posted by DEBORAH STONE (PACIFIC HOME BROKERS, San Diego, CA) about 10 years ago

Hi Stacey-Ann,

I agree with Elaine I think some people are renting until the prices go down further.

All the best!

Posted by Kevin O'Shea, White Plains, NY Real Estate (Coldwell Banker) about 10 years ago

I sure wish I could rent my place for more than my mortgage. I'd love to get into a bigger place, but don't want to sell my condo and can't afford to take a monthly loss on it. Send some of those renters to bump up the rents in my area.

Good luck on getting the right renters. Hopefully they'll be with you a long time.

- Dennis

Posted by Dennis Beckner (Beckner Mobile Notary) about 10 years ago

Lisa - isn't that something.  The market is so cyclical

Deborah - it seems like a good way to supplement your income here too. 

Deborah & Elaine - I don't blame the military for being nervous about buying when they know they may have to sell in a few years.

Kevin - I think too, that people can't qualify for the houses they want (just out of their reach) so they rent for one year and hope that prices come down some more.

Dennis - We found what seems like a great tenant, military, good credit, no pets.  I know lots of people who are taking a monthly loss on the rental.  But you figure $100/month loss is better than having to come up with several thousands to close because you owe more than current selling prices.

Posted by Dr. Stacey-Ann Baugh, A doctor who makes house calls. (Century 21 New Millennium) about 10 years ago

Stacey, Honestly I think that people are afraid.  I believe the media has gotten scared the public into a real estate frenzy.  Every time the media talks about real estate it's always negative.  People have just soaked that right on up! 

The only alternative is to educate them and show them the still, many options available to them.  I feel like, if I just talk to every person that I know or come in contact with, I CAN convince them that now is a great time to purchase a home.  That's what all realtors should do.  WE MUST GET THE TRUE WORD OUT!!!

HAVE A GREAT ONE,

 

Posted by Yvette Smith, Realtor In Williamsburg VA, Homes for Sale (LONG & FOSTER) about 10 years ago

Yvette - I agree.  If I had extra money I would buy up whatever I could find.

Posted by Dr. Stacey-Ann Baugh, A doctor who makes house calls. (Century 21 New Millennium) about 10 years ago

Stacey-Ann:  As the rental queen of my office in Gainesville, I can tell you that rentals are always in demand in our area (subrburan DC).  We always have an influx of military and government personnel that are relocating here from other areas.  These are seasoned moving vets.  They want to do something temporary first, then buy a house after a one year, or short term lease...once they know the area.  I think the rental market's gotten a lot hotter because these people that are losing their homes in foreclosure need somewhere to go.   

Posted by Chris Ann Cleland, Associate Broker, Bristow, VA (Long and Foster REALTORS®, Gainesville, VA) about 10 years ago

Chris Ann

I couldn't agree with you more. Rentals are always needed but at certain times in the market, in more demand (as you mentioned foreclosures rising). But a R.E. license does not equip all agents to do rentals. I have owned property for 25+ years, so finding tenants is an "art" and a system I have developed over the years. Don't you think that the advertising is secondary to how you "field the calls" and "follow up"? I find many owners turning tenants away, unknowingly, by just not understanding the process and the pitfalls. And then they call me & I can rent the house in 1-2 weeks.

 

Posted by DEBORAH STONE (PACIFIC HOME BROKERS, San Diego, CA) about 10 years ago

Chris Ann - I'm the rental queen in my office too.  I work the other side of suburban DC.  I'll keep you in mind if I have clients interested in the VA side.

Deborah - I agree screening a client is really the most important part of rentals.

Posted by Dr. Stacey-Ann Baugh, A doctor who makes house calls. (Century 21 New Millennium) about 10 years ago

I have also seen a huge drive for rent to own options here in PA. the media has everyone in a frenzy.

Posted by Sharon Harris, Realtor (Keller Williams Keystone Realty) about 10 years ago

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