Tag: Hold

When The Right Time To Sell, And When Should You Rent or Hold It?

Brian: I’m Brian Spitz, president of BigState Home Buyers.

Thanks for joining us and today, as our guest, we have Amber Carrillo,with Carrington Real Estate Services.

And we’re going to talk about when is the righttime to sell your house, and whether or not you should rent or sell it.

Whether it’sin this current market or just in general.

So, thanks so much for coming today.

Amber: Absolutely.

Thanks for having me.

Rent home or sell it(0:00:53.

1) Brian: Absolutely.

So, tell us about renting your home or selling it.

Amber: Well, when it comes to renting your home or selling it, there are just so manydifferent factors.

A lot of it is going to depend on you, on personal finances.

And whatworks best for your situation.

Are you in a situation where you need to sell your housein order to buy another one? Or are you in a situation where you’re going to be a longdistance landlord.

There are so many factors that go into that.

Brian: Yeah, that’s true.

I mean, a lot of it, I guess, is whether or not you needthe down payment and the equity of your first house or whether your mortgage lender requiresthat you only have one loan.

Amber: Exactly.

Brian: When you see people rent houses out, in my experience, at Big State Home Buyers,we buy houses directly from sellers and one of our biggest client bases is actually, afunny word, is tired landlords, people that have been landlords and want out of the business.

So, what I tell people is it’s not as easy as it looks.

But what is your experience?Of course, it works out really well for some people, especially if you get the right tenants.

Amber: Right.

(0:01:54.

8) Getting a Property Manager ifRenting Brian: What do you see for the average personwho is thinking about renting their home, rather than selling?Amber: Well, if you do not have the experience, I would absolutely recommend that you contractthat out with someone to handle the property management, because there are just so manydifferent laws, you know, tenant rights and landlord rights, and you really need to bestudying up on those types of things.

If not, have a really good real estate attorneyin your corner that you can call whenever a question or situation arises.

When it comesto doing evictions and stuff like that, it can get really hairy, so it’s not somethingthat you would always want to handle hands on.

Brian: Oh, yeah, definitely not.

The biggest reason people try to take that on themselvesis basically to save the money you pay the property manager but my philosophy is youshould pay people to do what they do best so you can do what you do best.

Amber: That’s exactly right.

Brian: Property management is a tough deal.

(0:02:44.

4) Screening tenants Amber: It is a tough deal.

And it’s so important,if that’s something that you’ve chosen to do, is that you screen the applicants verywell and you’ve got a system in place to screen those.

Brian: Right.

Amber: So a lot of times, if you’re goingto list it with an agent to lease it out, we have those resources available to do backgroundchecks and credit screenings and stuff like that.

Brian: Right.

Amber: To be able to prevent putting felonsand stuff like that in the property.

Brian: Right.

And so a lot of times, peoplejust put a For Rent sign in front of their house and they kind of take whichever tenantlooks like they can pay the rent.

But the reality is if you just wait for the righttenant, you end up in a much better position.

Amber: That’s right.

Brian: So, definitely, you know, and the market right now for rentals, just like for sales,is really strong.

So you can hold out for the right tenant.

Amber: Right.

Absolutely.

There’s tons of investors in the market that are snappingup the houses and turning them, holding them for a period of five to ten and even twentyyears, in some cases.

And they’re renting those properties out.

And there’s a highdemand for rentals.

There are so many people moving to Houston on a weekly basis, so, yeah,there’s a need out there.

And at every turn that you make here in Houston, you see newapartment complexes going up.

Brian: Everywhere.

It’s crazy.

Amber: Yeah.

And occupancy rate is very high right now, so rentals, they are a great investment.

Brian: So you can hold out for a good tenant.

If you’re going to rent your house, holdit out for a good tenant.

Amber: You can, but again, that just dependson if you have note on that house that you need to pay.

Yeah, if you’re in a bind financially,then that’s going to effect on how long you hold out for a good tenant.

9:04:15.

5) When is right time to sell Brian: Right.

Oh, I guess, that’s true,too.

How do you know when it’s the right time to sell? You know, there are a lot ofthings about the time of year or the market.

Obviously, the market, the perception is themarket is very strong in Houston, which it is, but what do you tell people when theyask you, what is the right time to sell my house?Amber: Well, you know, many people are looking to sell during the summertime.

That summertimefrenzy starts right in May and goes until about the end of August, beginning of September.

And that’s when you run into situations where you have multiple offers and there’sjust, you know, it’s not uncommon to have your house shown ten times a day.

So, butthat’s a time where people are moving.

You know, teachers are out of school for the summer.

Their kids are out of school for the summer.

And so it’s just more convenient to moveduring that time.

Generally, though, when people are lookingfor a house, if they’re going to be looking for a really good deal, they know the seasonsand they know to hold off.

Only people who really need to sell their house are goingto put their house on the market during Christmas time or during the holiday season.

Brian: Right.

Amber: So, if that’s something that you’refaced with, if it’s possible to put your house on the market during the frenzy, thebuying frenzy, I would definitely recommend it.

If not, you may take a hit in the priceby putting it on the market during the holiday season.

Brian: What’s the cut-off point? Like, if I have a house ready, can I put it on themarket November 1st? Is that too close to Thanksgiving? What is your opinion?Amber: There are people, sometimes, there are so many people moving into Houston, alot of relo’s are happening.

So there will be people, those people come any time of theyear.

Brian: Right.

Amber: And they still need to buy, just like everyone else.

And because we have such adeficit of homes and listings on the market available, right now, you’re not seeingthat impact as greatly as we did several years ago.

Brian: Right.

So really, any time right now in Houston is a good time to sell a house.

Amber: Absolutely.

(0:06:14.

3) Homestead ExemptionBrian: One of the other things that I see is, in our business, because we’re alwaysbuying, selling, buying, selling.

So we’re always closing houses and the fourth quarterof the year that, you know, November, December, October, those months can be some of our busiestmonths.

And one of the reasons I see in the past couple of years is the Homestead Exemption.

Doesn’t the Homestead Exemption cut off at the end of the year? You have to file forit by December 31st, don’t you, for the following year?Amber: You have to live in that house by December 31st.

Brian: Live in it.

Amber: Yes, of that year, in order to fileit for January.

Brian: So, there’s often a push to get closingsdone in the last weeks of the year so that you can get that Homestead Exemption.

Amber: There is.

And if you work with investors, like a lot of us do, then you’ll find abig push, you know, people are needing to make wise investments before the end of theyear for tax purposes.

So we usually, November, December, are some of our busiest months.

Brian: Yeah, they are.

Well, what else can you tell us about when to sell your house?Amber: Well, let’s see.

Brian: Or when you need to sell it.

Amber: Or sell it when you need to sell it.

Exactly right.

As far as seasons go, gosh(laughter).

I’m drawing a blank.

Brian: Well, that’s a really good start.

So if you want to rent your house, you can contact a good real estate agent, like yourself,and how can we reach you at? Amber: CarringtonRealEstateServices.

Com.

Brian: Okay, so CarringtonRealEstateServices.

Com.

If you want to sell your house fast and youdon’t want to list it and you don’t want to fix it, or if you’re a landlord that’stired of being a landlord, you can contact us at BigStateHomeBuyers.

Com.

But for theperson that wants to rent their house out, and I agree, get yourself a good agent.

Makesure you screen the tenants.

Hold out, if you can, for the good tenant that’s stablewith a job they’ve had for a while and good rent history.

And if you want to sell it,even though the seasons, the old thing is sell in the summer, hold in winter.

If you’rein Houston and you want to sell your house, it looks like any time is the time to do it.

Amber: Any time is a good time.

Brian: Great.

So again, I’m Brian Spitzwith Big State Home Buyers and we are here with Amber Carrillo with Carrington Real EstateServices and thank you very much for joining us.

Amber: You got it.

Brian: Great.

Thank you.

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