PM is pushing me to make a decision.
When I put Mom into residential care I didn't have the time or energy to learn how to calculate rent vs sell because of the Trust, so rented. Now it looks best to "shut down" the B trust so after I inherit I will get a full step-up in basis. Otherwise lots of taxes "now."
PM says tenant looking to buy but I think they are boxed in. They qualified for the rental because 2 of the 3 people "almost" qualified on their own. But for a mortgage, can you do that? Wouldn't co-habitators have to qualify on one income? So they can't get as nice a place. Plus cost of moving is same as a rent increase. And stock down, prices up because the Amazon speculators already bought everything.
PM says people want "updated" to granite countertops, SS appliances, nice bathrooms, fresh paint (!) and especially better windows - we have 1958 wood sash with removable storm windows.
I think my AGENT should be doing these strategic calculations to get the most money possible for US.
And if tenant looks up rates, they should find:
https://www.rentcafe.com/average-rent-market-trends/us/va/alexandria/
"The average rent for an apartment in Alexandria is $1,709, a 3% increase compared to the previous year, when the average rent was $1,659."
BUT mine is a single family not apt, and on the high end for price. So does my type of property as a rule of thumb track the "average" or less? Otherwise it supports 2x3 = 6% for me to "catch up."
PM proferred only 2 comps. But my neighborhood is south of the waterway shown:
https://matrix.brightmls.com/Matrix/Public/Portal.aspx?ID=3600584720
1st was on market 130 days, seems excessive? Dropped from $3k to $2500.
2nd "agent related to owner" on market 18 days -- that sounds really short, so why?
SO seems my agent should focus on rent PRICE history. My price 3 years ago -- what did it change to after 2 years when the lease ran out?
Shouldn't PM find data on DOM in the _neighborhood_ and for similar _prices_ all around?
Anybody want to give a tutorial on how to analyze comps? Alexandria assesses the full market value of the property, so I can't compare value bacause i don't understand how Fairfax is taking only a fraction.
5816 Doris Dr
List Price $2,499.00
Price/SqFt $1.55
FAIRFAX Tax Assessed Value $35,600.00
Availability Date 07/02/18
Lease 12 mo
Listing Details
Original List Price $2,999
Previous List Price $2,699
DOM 130
Listing Term Begins 07/01/2018
Off Market Date 11/14/18
Agreement of Sale Date 11/02/18
Close Date 11/02/18
Close Price $2,499.00
3901 Wheat Ct
List Price $2,700.00
Price/SqFt $1.57
FAIRFAX
Availability Date 03/27/18
Lease Term 12 Months
Original List Price $2,700
DOM 18
Listing Term Begins 03/24/2018
Off Market Date 04/10/18
Agreement of Sale Date 04/10/18
Close Date 04/10/18
Close Price $2,700.00