Baby Boomers call when Mom and Dad has to move out of the long-held family home. The adult children are challenged with the decision of whether to sell or rent out the house. There are many things to consider and I suggest beginning with asking yourself the following questions…
- What condition is the home and property in?
- Does it need repairs or improvements before leasing? Before selling?
- Do you want to be a landlord? Willing to pay taxes, insurance, repairs, gardener, utilities, etc. out of mo rent payment? What cash on cash return do you need?
- Do you want to hire property management co to handle maintenance./ tenant complaints, vetting new tenants? (Typically charge approx. 10% of mo.lease payment)
- Do you need a monthly income stream?
- Are you ready to pay 2 mortgages when there is a vacancy?
- Do you need a lump sum that can pay for mom’s care and be investing in something that will bring a greater return to the trust?
I give market data and home value, discuss trends around the Greater Walnut Creek and Lamorinda areas, as well as and absorption rates. This year could be the perfect storm as far as selling at the peak. You can sell as-is and not do anything to the property or we can discuss what it would take to get top dollar. Your realtor is not licensed to offer tax nor legal advice, and I recommend seeking the guidance from a trusted attorney and/or CPA to understand all the legal and tax ramifications, as each situation is unique. Let me know how I can help?
Your Seniors Real Estate Specialist & Downsizing Diva!