Sell or Rent Out?

**wookong** · 11-25-2011, 07:22 PM

We live in a first ring suburb of Twin Cities where the vast majority of houses were built in 1950 to 1960's. Our house was built in early 1990. A national builder recently bought the land next to our house and is building about two dozens houses literally at our front yard. My wife and I are very interested in buying a new home because of family needs. Our dilemma is what to do with current house. Shall we "compete" with those new houses and sell our house at a lower price or rent it out for a few years until the developer sells all the new houses.
Thanks for all the advice.

**Greg** · 11-26-2011, 05:23 AM

First you should talk to some LOCAL lenders to see if you CAN keep the your house and purchase another one. Sometimes they don't like the idea of someone buying a second home so close to their first home.

**maui** · 11-26-2011, 11:18 AM

First, find out if buying a new home while keeping your current one is a possibility, otherwise the dilemma is a moot point. Second, are you in a position where you could compete with the new construction?

**CC Lifestyle Realty** · 12-05-2011, 08:08 AM

There is some information we all are not aware that could impact your decision. First, what size and styleof residences are being built? Second, are you both in the same school district and if not who has the better schools? Third, it is easier to discover any issues with older homes. Newer homes will eventually have problems like most homes. Sadly many buyers aren't aware of that however. For example new homes must settle and eventually get cracks. New builders generally only offer a one year warranty on issues. You have the ability to purchase home warranties to compete including one that lasts more than a year for a potential buyer. Fourth, are you easier to access? Fifth, what is the housing market like in your neighborhood already? Is it strong or weak compared to the rest of the area?

There are many things that allow you to compete against a new builder. The key is research and find out how.

**rpollard86** · 12-08-2011, 06:40 AM

This happened to me in the Atlanta area. We ended up selling our house and property to the investors that were doing all the building. How big is your lot? I would ask the investors building the houses if they would be interested in buying your land as well.