Been trying to sell a rental we've had since 1985. A good tenant moved out back at the end of October, just in time for the rainy dreary cold stretch here in Oregon. Didn't feel like putting another renter in, though i could have filled it in a week for $850/month. Instead we just put the gas, power, and water in our names, left lights on & heat cranked up, and stuck an ad on Craigslist. Also sprang for some color cartridges and a flyer holder for the front yard. Utilities have been running $200/month + the lost rent. Showed it now & again, but have been showing it 4-5 times/ week the last few weeks - weather is getting nicer. Haven't closed a deal yet.
A real estate agent called - told her we would pay her 3% for a full price offer (asking $130k). She submitted an offer for $130k, but with us paying 3% towards buyer's closing costs. She also sent a copy of the buyer's USAA loan pre-approval letter showing approval for a $135k loan, 5% down. Inspection required, any required repairs & home warranty to be negotiated. We have rejected the offer, countering with a $135k price, with us paying 3% toward buyer's closing costs and $2500 toward required repairs and/or closing costs and/or home warranty.
Result is that we would end up with $124,400 ($135 - $4050 - $4050 - $2500) vs. $126,100 for full price minus 3% commission. Agent would make $150 more. Buyer would be looking at $5000 larger purchase price & $100 more down payment, but with the possibility of lower closing costs or less expensive home warranty & no need to haggle on repair costs. We build in $2500 toward any lender required repairs with no need to haggle or stress. Curious to see the buyer's response. Feel pretty peaceful about the whole deal - whether it works or not.
We've been considering a 1031 exchange, but decided against it even though we are thinking of buying more rental property near a huge Marine base out in the desert in a bankrupt state. Cash would give us more freedom to do deals fast and on our time frame rather than according to a time schedule.
3 bdrm, 1929 home