I live, write, and garden in the PNW with my husband of 27 years, disabled daughter, college-aged son, and my 84-year-old mother. We have paid off $250,000.00 worth of debt (if you include the interest) in the last fifteen years and as of 6/12/2020 are 100% DEBT FREE!!!!DS and I went out to do some work on the house last night. While we were there we talked to one of the neighbors. A house way down the street near the dead end sold for $30,000. Now I don't know what kind of shape it was in or anything like that and I strongly suspect it was a foreclosure or a short sale or something for them to just get out of it, but it was the same type and size as our house 1680 square feet, single story, 4 bedrooms, 2 baths. The lot was smaller though by about half and there was no garage or storage sheds and it isn't a fenced yard.
I just hope that doesn't mean that's how low property values have fallen out there. But there are a couple other houses for sale on the street and the selling prices are much higher than that. I just don't like seeing a house go for so little out there because then everyone will expect a bargain. Since I'm already going to be pricing it around $30,000 under it's assessed value, I don't want to have to go lower than that just because some bankruptcy people went under or walked away or something.
Another house two up from ours, the people in it went bankrupt and it was foreclosed on. They bought it as a foreclosure from people who went bankrupt and were foreclosed on. I'm starting to think that house has bad karma. Just so long as ours doesn't.
We do have the distinction of being one of the few cleared lots. A lot of lots are still heavily treed. We also have one of the few fences. There are strict rules at the HoA about fences and cutting down trees, but we moved into a place where the previous owners had gotten permission to fence the yard due to having a deaf child who might have wandered onto the highway without the fence and wouldn't have been able to hear the traffic and then took down a bunch of trees without permission and just paid the $500 fine for doing so.
I am starting to think about using it as a rental property. I am willing to offer a discounted rent if they are willing to fix things up. Like I'd pay for the paint if they were willing to paint. I'd pay for the wooden flooring if they were willing to install it. That sort of thing. Rents go for $800 to $1000 out there, so I was thinking $500 to $600. Enough to cover the mortgage, security system, HoA dues, and the insurance. They'd assume the water/sewer, electric, phone, and propane bills. It wouldn't be a profit making venture, but it would no longer be a drain on our finances and we'd have a fixed up house. Though it would be a hassle to have a rental 25 miles from home. I don't know. I am thinking about it, is all.
Some Not So Promising News
September 7th, 2011 at 01:40 pm
September 7th, 2011 at 02:49 pm 1315406995
I'd be hesitant on having renters to fix up a place. Just wondering their skill level and ability. The right person could make it work though!
September 7th, 2011 at 03:05 pm 1315407948
It might be worth it for you to pay a handy man/contractor to do the work, then you could rent it for the $1000K (increasing your rental income potential by $4K to $5K). I agree with creditcardfree. You should see the crappy paint job currently in the living room of my rental propery.
September 7th, 2011 at 03:41 pm 1315410095
That said, it certainly is a downer seeing other houses sell for so little. Buyers - smart ones - look at that. If they have a good agent, that agent will try to undercut your asking price by a significant amount if the difference (between the sold houses and yours) is large enough to allow that agent to do so. You certainly do not want to sell for less than what you feel comfortable with.
If I were in that situation, though, I would absolutely still try selling. However, it may be better for you to use as a rental, since it sounds like you have experience in that area.
September 7th, 2011 at 10:48 pm 1315435689
September 8th, 2011 at 02:39 am 1315449598