We moved about 20 months ago. The housing market was terrible and we were able to buy low. However, it would have meant selling low. Instead, we decided to keep our house and rent it out until the market improved. In order to avoid paying capital gains we have to sell within three years of when we moved out.
Our plan was to rent it for close to two years and then put it on the market in the spring.
Which is now.
Our renter moved out three weeks ago and we’ve been getting the house ready since then. Paint. Carpet in the downstairs bedroom. Remodel bathroom in downstairs bedroom. New fridge. New dryer. Linoleum in the laundry room.
We are listing with the agent we’ve done tons of business with. We’ve bought houses using him. We’ve sold dozens using him. And we’ve sent friends and family to him along the way. We’ve done so much business with him that he lists our houses for a 1% commission, which should save us close to $10,000 in realtor fees when we sell our home.
We’re pretty sure our strategy of waiting to list our house will pay off even though it hasn’t cash flowed for the past 20 months (ie. rent hasn’t covered our payments). We will probably get between $50K and $75K more selling this spring than if we’d tried to sell in 2011. That’s how much better the market is these days, at least here in Denver. Inventory is at an all time low. Interest rates are at an all time low. Prices still aren’t where they were in ’05 and ’06, but the market is hot, hot, hot.
It’ll go on the market this Friday. If we aren’t overpriced, we should have it under contract in 1-3 weeks.