Have you considered Leasing you Home?

Home For Rent

Home For Rent

Your housing market may be heating up, tempting you to sell your home. But you may not be quite ready to let it go, or, when you run the numbers, you may not be able to sell it for as much of a profit as you may want.

Have you considered leasing your home instead? You still retain ownership, giving you the opportunity to buy another home. And thanks to some generous tax rules, you can own your home for five years, occupy the home for two years, rent it up to three years and then sell it without paying capital gains taxes.

With luck, you’ll gain equity on two properties. That’s how many people build wealth – with real estate rounding out their investment portfolios.

When markets improve, often there aren’t enough homes available for purchase in the areas where families want to live. Relocating families may have a home to sell in another area or they may simply want to try out your neighborhood before buying. They want to spend a year settling in and learning about the area.

The market may be good but is it a good time for you financially? The ideal time to lease your home is if you can rent it for more than you’re paying in mortgage, taxes and insurance. You also need some savings that will cover months when the home isn’t rented, as well as repairs that may come up.

If you want to buy another home, the debt on the home you already own won’t count against you as much as you may think, and especially if you already have the home leased. The lender may add a couple months of mortgage debt to your overall debt picture to be on the safe side because many properties don’t rent right away or there may be lag-time between renters. With good to great credit, you can get a low down-payment loan that doesn’t require all your cash.

To help you decide if leasing is a good idea, talk with a real estate professional who enjoys working with the rental market such as an agent who is also a property manager. He or she will have comparables for other rentals in the area, so you’ll know how good the market is for homes like yours and how much you can expect to get for your home.

You’ll have to get your home ready to rent, just as you would to show it to a buyer. The better the condition, finishes and amenities your home has to offer, the more rent you can ask, within reason.

A property management professional can handle the whole transaction for you, including showing your home and qualifying the renter with credit and criminal checks. Typically, this will cost you one month’s rent. If you think you won’t be in a position to handle problems that may come up yourself, you can also hire the professional to manage your property.

As the owner, you can decide whether or not to allow pets, but you can’t refuse to rent to someone because of race, color, national origin, religion, sex, familial status or handicap. You can decline a renter who does not have the credit rating, earnings, deposit money, or references that you require for a good renter.

Your real estate broker can perform a number of background checks for you on potential renters including credit scores, rental and eviction history, criminal and sex offender checks, motor vehicle checks, and employment verification. If you decide to rent your home yourself, there are companies online that specialize in background checks for landlords.

Your rental agreement should include penalties for late payments, as well as outline clear terms — length of the lease, possession date for move-in; terms for extending the lease, fees for late payments, pets or no pets and so on. You need to be very clear about what the renter is responsible for doing and what you will do as the owner. This will prevent disputes over who pays utilities, who mows the lawn and who calls the plumber.

Make sure the renter also pays one month’s deposit so you can cover the costs of cleaning, repainting and other make-ready steps. Last, make sure your renter has renter’s insurance.

Written by Blanche Evans on Wednesday, 04 March 2015 2:34 pm

Southern Region Market Snapshot for November 2014

The Mid-Atlantic: Southern Region Market Snapshot for November 2014 for Spotsylvania County, VA

This area includes the following zip codes:

22407 & 22408 in Fredericksburg, VA
22508 in Locust Grove, VA
22553 & 22551 in Spotsylvania County, VA
22567 for Unionville in Orange County, VA
22580 for Woodford in Caroline County, VA
22960 for Orange, VA
22534 for Partlow in Spotsylvania County, VA

The Southern Region market snapshot for Spotsylvania County, Virginia for November 2014 is as follows:

For the month of November 2014, the Units Sold rose slightly at 4.39% over 2013’s November units of 119, to 114.  The Average Sold Price for homes reported in this Southern Region for November 2014 was $268,599, which increased slightly over the preceding month of October and  increased 3.36% over November’s LY (last year) of $259,880. The Average Days on the Market for the month of November 2014 saw a substantial increase over November 2013’s 75 days to November 2014’s reported 95 days.  The ratio of Average Sold Price to Average Original List Price dropper almost 2% with November 2014 at 92.9%. The Average Sold Price for Detached homes sold in Virginia’s Southern Region in November 2014 was $275,992 versus $266,710 from November 2013, another area that saw a measurable increase of 3.48% in sold prices over the previous year.

 

Active Listing housing inventory for Spotsylvania County in this Southern Region of Virginia fell again slightly for another consecutive month for November 2014 to 648, 162 of them New Listings.

The real estate market statistics for Virginia’s Southern Region for the month of November 2014 confirm that Sellers are still receiving fair market offers on their homes. Buyer closing cost assistance continues to average around 3-5% of an offer’s sales price.  Buyer activity continues to emerge upward in November of 2014 as well.  New Listing inventory fell back slightly for the for the second month in November 2014 as well.  Total inventory is still up for the eighteenth month in a row, the highest total in years.  The increased inventory is giving Buyers many choices out there in the Mid-Atlantic Region and will hopefully continue to entice Buyers in these slower, colder months to come.

Sign up for monthly real estate updates at HomesInFredericksburgVA.com and check back for Spotsylvania County, VA’s December 2014 Real Estate Market Snapshot coming in mid-November 2014. Source www.rbintel.com, www.getsmartcharts.com

Virginia’s Southern Region Market Snapshot for May 2014

The real estate market snapshot is in for Spotsylvania County, VA the month of May 2014 for this Southern Region in Virginia. This area includes the following zip codes: 22407 & 22408 for Fredericksburg, VA; 22508 in Locust Grove, VA; 22553 & 22551 for Spotsylvania County, VA; 22567 for Unionville in Orange County, VA; 22580 for Woodford in Caroline County, VA; 22960 for Orange, VA; and 22534 for Partlow in Spotsylvania County, VA.  The market snapshot for Spotsylvania County, Virginia for May 2014 is as follows:

May 2014

 

For the month of May 2014, the Units Sold crept up every so slightly .59% from 2013’s May units of 170, to 171.  The Average Sold Price for homes reported in this Southern Region for May 2014 was $255,645 which increased ever so slightly 3.55%  from May 2013’s $246,869. The Average Days on the Market for the month of May 2014 saw an increase for a fifth month in a row at 5.26% from May 2013’s 57 days to May 2014’s reported 60 days.  The ratio of Average Sold Price to Average Original List Price maintained consistent with month’s past at 95.7%. The Average Sold Price for Detached homes sold in Virginia’s Southern Region in May 2014 was $262,476 versus $256,662 from May 2013, another area that saw a slight increase of 2.27% in sold prices over last year.

Housing inventory for this Southern Region in Virginia continues to grow at 686 Active Listings for May 2014, 313 of them new listings.

The real estate market statistics for Virginia’s Southern Region for the month of May 2014 confirm that Sellers are still receiving justifiable market offers on their homes. Seller concessions are still averaging around $5300. Multiple offers are making a come back and are already seeing a slight rise again as we enter Summer in Virginia’s Southern Region due to a relatively tight inventory for Buyers. Expect to see the use of escalation clauses within contracts to be on the rise again as well.

Sign up for monthly real estate updates at HomesInFredericksburgVA.com and stay tuned for Spotsylvania County, VA’s Southern Region’s June 2014 Real Estate Market Snapshot to come out mid-July 2014. Sources: rbintel.com, nvar.com

Virginia’s Southern Region Market Snapshot for April 2014

The real estate market snapshot is in for Spotsylvania County, VA the month of April 2014 for this Southern Region in Virginia. This area includes the following zip codes: 22407 & 22408 for Fredericksburg, VA; 22508 in Locust Grove, VA; 22553 & 22551 for Spotsylvania County, VA; 22567 for Unionville in Orange County, VA; 22580 for Woodford in Caroline County, VA; 22960 for Orange, VA; and 22534 for Partlow in Spotsylvania County, VA.  The market snapshot for Spotsylvania County, Virginia for April 2014 is as follows:

April 2014

For the month of April 2014, the Units Sold crept up every so slightly 1.54% from 2013’s April units of 130, to 132.  The Average Sold Price for homes reported in this Southern Region for April 2014 was $245,119 which decreased ever so slightly -1.26%  from April 2013’s $248,237. The Average Days on the Market for the month of April 2014 saw a  large increase for a fourth month in a row at 22.73% from April 2013’s 66 days to April 2014’s reported 81 days.  This prolonged pattern of days on the market still had much to do with……  The ratio of Average Sold Price to Average Original List Price maintained consistent with month’s past at 95.1%. The Average Sold Price for Detached homes sold in Virginia’s Southern Region in April 2014 was $249,444 versus $254,948 from April 2013, marking another area that saw a slight decrease of -2.16% in sold prices over last year.

Housing inventory for this Southern Region in Virginia continues to grow at 635 Active Listings for April 2014, 329 of them new listings.

The real estate market statistics for Virginia’s Southern Region for the month of April 2014 confirm that Sellers are receiving justifiable market offers on their homes. Multiple offers are making a come back and are already seeing a slight rise again as we enter Summer in Virginia’s Southern Region due to a relatively tight inventory for Buyers.  Expect to see the use of escalation clauses within contracts to be on the rise again as well.

Sign up for monthly real estate updates at HomesInFredericksburgVA.com and stay tuned for Spotsylvania County, VA’s Southern Region’s 2014 real estate snapshot to come out mid-June 2014. Sources: rbintel.com, nvar.com

Virginia’s Southern Region Market Snapshot for March 2014

The real estate market snapshot is in for the month of March 2014 for the Southern Region in Virginia. This area includes the following zip codes: 22407 & 22408 for Fredericksburg, VA; 22508 in Locust Grove, VA; 22553 & 22551 for Spotsylvania County, VA; 22567 for Unionville in Orange County, VA; 22580 for Woodford in Caroline County, VA; 22960 for Orange, VA; and 22534 for Partlow in Spotsylvania County, VA.  The market snapshot for Spotsylvania County, Virginia for March 2014 is as follows:

April 2014

For the month of March 2014, the Units Sold crept up every so slightly to 2.27% from 2013’s March units of 132, to 135,  still consistent my the harsh winter this area has sustained for a third month in a row starting off 2014. The Average Sold Price for homes reported in this Southern Region for March 2014 was $257,069 which increased a substantial 14.32%  from March 2013’s $224.863. The Average Days on the Market for the month of March 2014 saw a  large increase for a third month in a row at 63.64% from March 2013’s 55 days to March 2014’s reported 90 days.  This prolonged pattern of days on the market still had much to do with the cold temperatures that this region continued to sustain over the last three months and inability for people to show and view homes and/or move, while snowed in place.  The ratio of Average Sold Price to Average Original List Price maintained consistent with month’s past at 93.5%. The Average Sold Price for Detached homes sold in March 2014 was $264,407 versus $231,821 from March 2013, marking another area that saw a nice increase of 14.06% in sold prices over last year.

Housing inventory for this Southern Region in Virginia continues to grow at 568 Active Listings for March 2014, 479 of them new listings.

The real estate market statistics for the month of March 2014 confirm that Sellers are receiving justifiable market offers on their homes. Multiple offers have settled down, with the exception to specifically coveted areas, but are already seeing a slight rise again as we enter Spring in the Southern Region due to the low inventory for Buyers.  I expect to see the use of the escalation clauses within contracts to rise again as well.

Sign up for monthly real estate updates at HomesInFredericksburgVA.com and stay tuned for the Southern Region’s 2014 real estate snapshot to come out mid-May 2014. Sources: rbintel.com, nvar.com

Spotsylvania County Market Snapshot for February 2014

The real estate market snapshot is in for the month of February 2014 for Spotsylvania County, Virginia. This area includes the following zip codes: 22407 & 22408 for Fredericksburg, VA; 22508 in Locust Grove, VA; 22553 & 22551 for Spotsylvania County, VA; 22567 for Unionville in Orange County, VA; 22580 for Woodford in Caroline County, VA; 22960 for Orange, VA; and 22534 for Partlow in Spotsylvania County, VA.  The market snapshot for Spotsylvania County, Virginia for February 2014 is as follows:

February 2014

For the month of February 2014, the Units Sold went down 7.27% from 2013’s February units of 110, falling to 102,  justified by the “polar vortex” temperatures that this Central Virginia area has sustained for a second month in a row starting off 2014. The Average Sold Price for homes reported in Spotsylvania County for February 2014 was $220,872 which decreased 2.14% from the gain we saw in January 2014  and a decrease over 2013’s February’s Average Sold Price of $225,705. The Average Days on the Market for the month of February 2014 saw another fairly large increase for a second month in a row at 35.19% from February 2013’s 54 days to February 2014’s reported 73 days.  The increase in days on the market also had a lot to do with the deep freeze that this area has sustained over the last two months and inability for people to tour homes or move, while frozen in place.  The ratio of Average Sold Price to Average Original List Price maintained consistent with month’s past at 93.6%. The Average Sold Price for Detached homes sold in February 2014 was $232,927 versus $238,796 from February 2013, marking another area that saw a slight decrease of 2.46% in sold prices over last year.

Housing inventory for this Southern Region in Virginia continues to grow at 520 Active Listings for February 2014, 207 of them new listings.

The real estate market statistics for the month of February 2014 confirm that Sellers are receiving justifiable market offers on their homes. Multiple offers have settled down, with the exception to specifically coveted areas, but are suspected to rise again come Spring as well as the use of the escalation clauses within contracts.

Sign up for monthly real estate updates at HomesInFredericksburgVA.com and stay tuned for Spotsylvania County’s March 2014 real estate snapshot to come out mid-March 2014. Sources: rbintel.com, nvar.com