An Alternative to Selling in A Slow Market

As an appraiser I estimate value.  My estimate is based on several different methods, however the approach that is usually given the most emphasis is the market approach.  This approach, which is also known as the sales comparison approach,  utilizes recent sales of similar homes within the subject property’s market area.  In today’s economic climate this has been a problem in certain areas because sales have been slow.  The properties that have sold have experienced declining values over past years.  For those wanting to sell their homes now, this has been a challenge.  Neighborhoods and communities are also experiencing overall declines in value.Rent instead of sell

One alternative to selling in this slow market is renting your home .  By renting you can generate income and put off selling the home until the market returns to more acceptable levels.  This may not work for everybody but it is something you may want to consider.  My friend Bryan Jenkins at AHI Corporate Housing handles rentals and can answer any questions you may have.  He can be reached at (205) 682-9106.  You may find this to be a great alternative for your situation.

Comments

  1. That could be a good alternative to selling, but hopefully the market wouldn’t go down in the mean time, huh? People can always hire you to get an appraisal on what their house is worth, and then make that decision.

    • That’s true Ryan. With the appraisal they can then make an educated decision. I see more people wanting to sell FSBO because they don’t want the realtor commission to cut into their shrinking equity. Leasing their home would be short term until the market bounces back. Some people may be upside down in their mortgage and this might help them get right side up again when things recover. Do you find many people going the FSBO route in your area?

  2. Real Estate Appraiser Tips says

    Good Points Made, Tom!

    As an appraiser, I just wish it were so much easier to actually locate rental comps in a market. I’ve gotten to where I turn down assignments when a rent schedule is accompanied with the order because finding and verifying rental comps is such as hassle. On the MLS Sheets, if the listing is tenant occupied, there should be a section to state the rental duration, lease date and lease amount. I’ve been recommending to my local MLS to add this to listing sheets for 4 years now with no follow through on their part.

    Hassle. We have to find all the MLS listings and recent solds that were tenant occupied and email and call the Agents hoping they will first return the contact, and then have the rental information, which most of the time they don’t. It’s a nightmare trying to dig for this data. We used to have a large local property management that would help us with this data, but they’ve since stopped giving this information out.

    So, I simply turn down these assignments because they can’t pay me enough for my time involved trying to dig for the data. And, when we can’t find the data, it threatens my normally good turn-times with my clients and future orders from them.

    There must be a better way to have this information available to appraisers. Yes, we have the rental listings info online, but not verified rentals.

    Appreciate You!
    Bill Cobb

    • Bill,
      I feel your pain!. We have to dig and dig here as well. The agents are pretty helpful here but one of our big problems too is that a lot of these properties that are rentals and that sell do not go through the MLS. We have to track down the owner, and as you well know, they will hardly give you any info. The fees on these probably need to be more than what they are. Thanks for the comments.

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