I need your opinion!

[Kurt]

Mark,

Considering the rise in mortgage interest rates recently, I have done the analyisis based on a similiar home that I own that grosses $110k/year with actual expenses experienced. Assuming no rental agency, 100% finance at 6.85%, and a limited tax effect of rental losses of $25,000 per year; a break even cashflow situation for your potential buyer would equate to a purchase price around $1.25 million. At that price the new owner would have no yearly out of pocket after taxes and would have the upside of future appreciation.

Big home = great rentals

Sounds good but would that be your starting point at $1.25m? Sale prices around here have not had a break even point for awhile now.

 

[Mermaid]

Sounds good but would that be your starting point at $1.25m? Sale prices around here have not had a break even point for awhile now.

Break even? Those are heavenly words in this soft market. I'm beginning to think that many of us who have bought have bought for love of beach alone. Which in itself is hardly a bad bargain *considering our beaches * but hardly the stuff profit is made of. Asking prices these days must be very carefully considered, and I'd hardly venture forth without a competent real estate professional at my side.

 

[luv30A]

Sounds good but would that be your starting point at $1.25m? Sale prices around here have not had a break even point for awhile now.

Price it at what you want. There are a lot of houses on the market from $1m-$2m. It all depends on do you want to sell or do you want to fish. There are not many fish out there biting.

 

[Kurt]

Price it at what you want. There are a lot of houses on the market form $1m-$2m. It all depends on do you want to sell or do you want to fish. There are not many fish out there biting.

It is not my house so i will go fishing.

Mark - I hope i am not insulting by being flip. I hope that you get some help here. ;-)

 

[SHELLY]

Price it at what you want. There are a lot of houses on the market from $1m-$2m. It all depends on do you want to sell or do you want to fish. There are not many fish out there biting.

I agree with Luv30A.

You've got a unique property, and in today's softening RE market with very few buyers--only a tiny fraction of those very few buyers are looking for what you're selling.

If you "really" want to sell you need to weigh the pros and cons of having this property sit on the market while you chase prices down vs. pricing to get under the market so you have a chance of getting rid of this asset.

Are you willing to accept making a reasonable profit instead of a "killing in the RE market?"

In my opinion, determining a proper selling price for the house is secondary to your determination and desire to get this property out of your portfolio.