Sell now and rent or stay put?

[NotCranky]

I have noticed a trend. Many of us ,who have decided to keep at least one San Diego property, say “keep it”. Of course we have good arguments too:).
It’s is a tough one. All our opinions have some element of speculation.

You could list it to test the waters. I think you will find them to be quite cold, but who knows. There could be a renter in the area that has had enough and is just hoping your property would come up for sell . You could try to sell it yourself. Discount it,from comps, the price of commissions + another 3%-5%percent and pay someone to do the paper work for you.If that is not your thing, you could give a short listing period to an agent. Try it again in March if the market hasn’t collapsed.

[joebaduba]

Ex-SD, we are considering relocating in SD county and Tierrasanta was one of our thoughts. I noticed that you lumped Tierrasanta in with Chula Vista for comparable price declines. CV is going to be foreclosure city, I’m sure, just wondering what your take is on Tierrasanta that you put it in a category with CV and San Marcos. It seems like a nice neighborhood, closer in than the other two, albeit aging a little.

Anybody else have thoughts on Tierrasanta for family of three? (10 year old daughter)

[joebaduba]

Ex-SD, we are considering relocating in SD county and Tierrasanta was one of our thoughts. I noticed that you lumped Tierrasanta in with Chula Vista for comparable price declines. CV is going to be foreclosure city, I’m sure, just wondering what your take is on Tierrasanta that you put it in a category with CV and San Marcos. It seems like a nice neighborhood, closer in than the other two, albeit aging a little.

Anybody else have thoughts on Tierrasanta for family of three? (10 year old daughter)

[joebaduba]

Ex-SD, we are considering relocating in SD county and Tierrasanta was one of our thoughts. I noticed that you lumped Tierrasanta in with Chula Vista for comparable price declines. CV is going to be foreclosure city, I’m sure, just wondering what your take is on Tierrasanta that you put it in a category with CV and San Marcos. It seems like a nice neighborhood, closer in than the other two, albeit aging a little.

Anybody else have thoughts on Tierrasanta for family of three? (10 year old daughter)

[Anonymous]

sd_resident, I am glad you posted this, you saved me from having to start a new topic. We are almost in identical situations. I bought my 3 bedroom house in north county in the early 2000’s with 20% down before the bubble got completely out of control. And yes, I acknowledge the timing is all luck, believe me I’m no real estate genius. Anyway, like you I’m in a good spot assuming a nightmare scenario (for owners) where the market drops another 50% I still can still sell with my head above water. My mortgage is less than 20% of my take home income, so I can put alot of money away, which is nice. With the recent drops though I have felt “the itch” to get into a bigger house as my family grows. But as I’ve learned from these great brains on Piggington the market still has a lot left to give for buyers, so try to resist the urge. But like you I am thinking “What about my current house?”, should I keep it and rent it out eventually, sell it before the market drops even more and rent, or do the standard sell/make contigent offer on new house, or stay put? The choices are overwhelming.

[Anonymous]

sd_resident, I am glad you posted this, you saved me from having to start a new topic. We are almost in identical situations. I bought my 3 bedroom house in north county in the early 2000’s with 20% down before the bubble got completely out of control. And yes, I acknowledge the timing is all luck, believe me I’m no real estate genius. Anyway, like you I’m in a good spot assuming a nightmare scenario (for owners) where the market drops another 50% I still can still sell with my head above water. My mortgage is less than 20% of my take home income, so I can put alot of money away, which is nice. With the recent drops though I have felt “the itch” to get into a bigger house as my family grows. But as I’ve learned from these great brains on Piggington the market still has a lot left to give for buyers, so try to resist the urge. But like you I am thinking “What about my current house?”, should I keep it and rent it out eventually, sell it before the market drops even more and rent, or do the standard sell/make contigent offer on new house, or stay put? The choices are overwhelming.

[Anonymous]

sd_resident, I am glad you posted this, you saved me from having to start a new topic. We are almost in identical situations. I bought my 3 bedroom house in north county in the early 2000’s with 20% down before the bubble got completely out of control. And yes, I acknowledge the timing is all luck, believe me I’m no real estate genius. Anyway, like you I’m in a good spot assuming a nightmare scenario (for owners) where the market drops another 50% I still can still sell with my head above water. My mortgage is less than 20% of my take home income, so I can put alot of money away, which is nice. With the recent drops though I have felt “the itch” to get into a bigger house as my family grows. But as I’ve learned from these great brains on Piggington the market still has a lot left to give for buyers, so try to resist the urge. But like you I am thinking “What about my current house?”, should I keep it and rent it out eventually, sell it before the market drops even more and rent, or do the standard sell/make contigent offer on new house, or stay put? The choices are overwhelming.

[SD Realtor]

I have a client who has an in law and they want to buy a home in Tierra Santa. We have been looking at places there for the past several weeks. IMO Tierra Santa is not comparable to CV at all. Will Tierra Santa go down? Absolutely. I don’t think it will have nearly the foreclosure rate of CV. Right now we have been focusing on the El Dorado Hills area which is at the edge of TS along the hillside and faces to the southwest. As far as schools and such for TS, I have not dug into that as these people are getting a place for mom.

Don’t get me wrong. TS will indeed depreciate. I don’t think it will get pounded as hard as CV or San Marcos but it will go down.

SD Realtor

[SD Realtor]

I have a client who has an in law and they want to buy a home in Tierra Santa. We have been looking at places there for the past several weeks. IMO Tierra Santa is not comparable to CV at all. Will Tierra Santa go down? Absolutely. I don’t think it will have nearly the foreclosure rate of CV. Right now we have been focusing on the El Dorado Hills area which is at the edge of TS along the hillside and faces to the southwest. As far as schools and such for TS, I have not dug into that as these people are getting a place for mom.

Don’t get me wrong. TS will indeed depreciate. I don’t think it will get pounded as hard as CV or San Marcos but it will go down.

SD Realtor

[SD Realtor]

I have a client who has an in law and they want to buy a home in Tierra Santa. We have been looking at places there for the past several weeks. IMO Tierra Santa is not comparable to CV at all. Will Tierra Santa go down? Absolutely. I don’t think it will have nearly the foreclosure rate of CV. Right now we have been focusing on the El Dorado Hills area which is at the edge of TS along the hillside and faces to the southwest. As far as schools and such for TS, I have not dug into that as these people are getting a place for mom.

Don’t get me wrong. TS will indeed depreciate. I don’t think it will get pounded as hard as CV or San Marcos but it will go down.

SD Realtor

[Bugs]

Your housing costs will not go down as a result of renting. The cost of financing probably will go up if the pricing structure declines enough to cause you to “lose” your current equity. “Moving up” may not turn out to be an option in the long run.

You’ve already held this property for 6 years, which puts you that much closer to paying it off.

It’s a tough call. A lot of it depends on how risk averse you are and how comfortable you are with your long term employment situation. The possibility of a job relocation between now and the time the market rebounds could easily justify a decision to get your equity out now while you have access to it.

[Bugs]

Your housing costs will not go down as a result of renting. The cost of financing probably will go up if the pricing structure declines enough to cause you to “lose” your current equity. “Moving up” may not turn out to be an option in the long run.

You’ve already held this property for 6 years, which puts you that much closer to paying it off.

It’s a tough call. A lot of it depends on how risk averse you are and how comfortable you are with your long term employment situation. The possibility of a job relocation between now and the time the market rebounds could easily justify a decision to get your equity out now while you have access to it.

[Bugs]

Your housing costs will not go down as a result of renting. The cost of financing probably will go up if the pricing structure declines enough to cause you to “lose” your current equity. “Moving up” may not turn out to be an option in the long run.

You’ve already held this property for 6 years, which puts you that much closer to paying it off.

It’s a tough call. A lot of it depends on how risk averse you are and how comfortable you are with your long term employment situation. The possibility of a job relocation between now and the time the market rebounds could easily justify a decision to get your equity out now while you have access to it.

[joebaduba]

Thanks SD Realtor,

As for the schools, we have heard about some racial tension at the high school due to busing, and it does seem like a neighborhood for “mom”.

Sorry to go off topic there. Since we know want to relocate, we are definitely going to try and get sold right now, rent for a year or two or more if necessary. I don’t see any way this market can stay even flat. Renting gives you too much flexibility in our circumstance. If you don’t sell now, be prepared to adjust expectations for the future.

[joebaduba]

Thanks SD Realtor,

As for the schools, we have heard about some racial tension at the high school due to busing, and it does seem like a neighborhood for “mom”.

Sorry to go off topic there. Since we know want to relocate, we are definitely going to try and get sold right now, rent for a year or two or more if necessary. I don’t see any way this market can stay even flat. Renting gives you too much flexibility in our circumstance. If you don’t sell now, be prepared to adjust expectations for the future.

[Author]

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