Should I sell or should I rent my home in Georgetown, Texas?

FREAK – Frequent Real Estate Asked Kuestions

D-and-T-Bargain-Center-Sign.jpg“Back in the day” when we were just starting the accumulation of toys for our children we used to go after some real bargains on Craigslist. Sometimes we would get a toy for such a great deal that when the kids got tired of playing with it, we would sell it on Craigslist again…for a profit!

Well, unfortunately, selling a home in Georgetown, Texas is not the same as selling a toy. I just received this letter today from a lady in my neighborhood:

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San-Diego-Letter.jpgHi Edward.

I believe we may have met once or twice in the village and it seems you do quite a bit of work out here.

I own a home in Georgetown Village and have just accepted an offer for a job with my company out of state. Because I’m only planning to be gone for about 2 years I am considering whether to try to rent my home rather than sell. My husband and I built this home and really like the floorplan, etc. so I’d like to hold on to it if it makes sense financially since we anticipate being back in this area in the future.

To help me make the decision of whether to rent or possibly sell I’d like to get an idea of what rentals in the village go for and how cumbersome the rental process really is – from observing the activity it seems many homes have been up for rent and appear to have people in them now. Is this something you can help me with?

Thanks,
Sarah

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freak_show.jpgWow, that’s a great question Sarah and you’re certainly not the first to ask it. That’s why I’m posting this in my new Frequent Real Estate Asked Kuestions Category. Ok, I know that’s not grammatically correct and there is maybe just one spelling error, big deal. How else could I make the acronym spell FREAK?

The thing with selling a home is…it’s EXPENSIVE! The costs you have to pay as a seller, although negotiable, are typically around 8% of your sales price! And if you plan on buying a home here in 2 years Sarah, you’ll also have to pay title fees and lender fees…adding up to an additional 2% (minimum) of fees. That means, if you decide to sell a $200,000 home and then buy it again in two years (assuming zero appreciation), you’ve already spent $20,000 just to make the two transactions happen! Good thing selling toys on Craigslist doesn’t cost this much!

Even if that $200,000 home sat vacant for 1 year and the mortgage was $1500/month, you would only be out $18,000! By the way Sarah, rents in the Village average $1200/mo. – $1600/mo.

If you make this decision for purely financial reasons, then it just seems as though keeping a home that you already love is the way to go. Two years goes by quickly. However, like Master Card says, “There are some things that money just can’t buy.” For $20,000, how would you like to:

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  1. Not having to ever worry about making two payments.
  2. Be able to pull out the equity in your home (tax free) for investments or other uses.
  3. Get out of the property management and/or landlord business
  4. Have the option of buying another home/neighborhood when you come back to Georgetown, Texas
  5. Having the freedom to stay longer and maybe never come back to Georgetown, Texas
  6. Have the best real estate agent in Georgetown, Texas help you buy and sell a home!

Wow, I really like #6! Sarah, I hope that helps. Feel free to comment on this blog or call me anytime.

Georgetown, Texas Real Estate Blog


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