August 14, 2011 1 Comment
As long as I have been a REALTOR® there always seems to be the sentiment that one side or another just “doesn’t get it”. It teetered between the buyer, the seller and the agent who had no clue what realistic expectations of what ever the current market conditions may be. Who doesn’t get it now: The Renters.
It Really Is Not A Good Time To Be A Renter
Inventory is low driving rental prices up. The typical renters are competing for a smaller amount of inventory with people who would have been home owners but cannot or choose not to buy right now. Many of those that used to be strong buyers such as first timers, relocation clients and down sizers are just a few examples where many are choosing rental options for the present time.
A Renter Is Not A Distressed Property Owner’s Savior
More and more I am receiving inquiries about renting properties listed for sale, especially the short sales. With a few exceptions renting does not resolve anything for the typically home seller. There are many reasons why including:
- A seller cannot move on and purchase a new home without getting rid of their current mortgage and the equity out if there is any.
- Many owners are not in the financial position to rent. Unless there is equity in the property, market rate rents are not going to cover mortgage, insurance and taxes.
- If an owner is attempting to do a short sale that means that for what ever their situation is(i.e relocation, heath, divorce, job loss) they are not in the position to hold the property and the property is not worth what they owe on it.
Look For What Is Listed For Rent Not What Is Not
If a seller has the desire to be a landlord as well as the financial wherewithal they would have listed it for both sale and rent.