Should I Sell keep or rent

Question

Hi everyone,

I was able to buy a home last year in Charlotte nc for around 223k off the statesville rd area. The home is in a great location about 7 minutes from uptown and NODA. I’m looking to sell ASAP and hoping to get 400k. I plan to list for 375k I’ve done some upgrades which includes new flooring, recessed lighting, upgraded chandeliers and pendant lights updated light switches and I painted. My realtor does not believe I will get 400 and wants me to drop price to 350. I lived in the house a year so I would be excluded from the 2 out of 5 year law. My question is should I sell now or rent? My realtor says the market is going back to normal and it’s unrealistic to think I can sell for 400k. The house is 1584 square feet 3 beds 2 bath it’s in GREAT condition..advise?

Christopher Lennon · Answer

I should’ve hired you ha. A buddy of mine just sold his house for 400k same area as mine and he paid 200k for it. His house was about 8 years older than mine. I spoke with my realtor again today and she is confident I will be able to get at least 380k out of the house. She says inventory is low. If I can’t sell for at least 375-380 I’ll rent it out though. I’m raising a family and I would prefer if we were out in the country with a big yard big house etc. I would prefer to sell to not deal with the headache of having tenants I tried that before and I lost all my hair

Andy Sabisch · Answer

So you bought a property a year ago for $225K and are looking to sell it for $400K . . . . and it sounds like you did limited upgrades in that time. Did you find a property that was extremely undervalued at the time you bought it? The market has been hot but in many areas, as the interest rates go up a 0.5 point, the pool of buyers is reduced. Has your agent run a comparable analysis for your property? Have you looked at Redfin to get an estimate (not ZIllow as they are typically off in one direction or another)? These will tell you what the market is looking like at the present time. You are expecting the property to get into a bidding war and drive the price up $25K. Not sure about your neighborhood but I have friends that invest in the Charlotte area and they have seen a down turn in the frenzy that was 2021 and early 2022. Be aware that your definition of GREAT CONDITION may not match what people that are looking in that price range would consider GREAT CONDITION.Redfin will give you a value . . . see how it compares to your agents estimate (https://www.redfin.com/)Take a look at the comp report from your agent, see how long properties in the immediate area are staying on the market and at what price. Just because you feel you should be able to get $400K today does not mean it will fetch that on the market. You do not want to be the most expensive property on the market nor priced above what the properties in your immediate area are selling for . . . it will not generate activity and when you start dropping price, buyers wonder why. A few of recent buys have been properties that we saw have been on the market for 75+ days and had a few price reductions. We were able to come in even lower and get a great deal number wise because the seller had tainted the well water so to speak with the initial pricing.

Eliott Elias · Answer

Sell on the rise and buy on the dip. If you feel your market is strong enough to unlock 375k on a sale I’d sell it and stay cash heavy.

Christopher Lennon · Answer

Got lots of interest house is under contract for over 150k more than what I paid for it

Andy Sabisch · Answer

Wanted to ask how you made / are making out on the property? Did you list it at the price you wanted to? Was there interest and did you get it under contract? We all are curious if the market is changing there and if so, how quickly . . .

Christopher Lennon · Answer

Family is already Prioritized wife wants to move kids are babies and I have a online business so I can work from anywhere. This seems like prime opportunity to sell. I’ve already looked into the taxes. They won’t have much of effect I’ll pay 20-30k depending on how much I sell for which is pocket change IMO

Jane S. · Answer

You want it all. How about prioritizing. Family first then business. If you can get rid of it for $350K you will still have to pay Cap gains. Just my 2 cents. Tenants are a nightmare.

Maranda Tucker · Answer

Andy made some great points in his response!I will say as an agent in CLT, across the board (with a few exceptions), the number of showings we saw on listings were significantly low this past weekend, even with the holiday in mind. We have been seeing this trend more and more the last month. So, if you are going to sell, sell NOW. However, ask your agent to see an actual comp report. Review the data yourself first. I say this because often agents will not run a true report, they will only conduct a quick CMA- which can be helpful but not as accurate. We have a free comprehensive rental analysis on our website if you need additional info to help you decide.

Christopher Lennon · Answer

There’s a home going in my neighborhood for 375 about the same size as mine and a bit older. My realtor found out today that it’s a flip it’s been on the market for 11 days. She says it’s because FHA buyers can’t buy because it was recently purchased. She told me she advises I list for 375 and I’ll probably get 380 and I’m happy with that. Once I sell or rent Im moving my family to the country of NC where I can get get a 400k house by charlottes standard for 300 then I’ll take my profit and put 70k down