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Texas is a hot hot real estate market right now. Most houses sell within a week. So I decided to sell 2 more of my rental properties because anything that is that hot today will be cold later. Time to take the chips off the table.
Because I’m in Panama and my daughter is in the middle of a move, I listed with a real estate agent. Finding a good real estate agent is not easy as you well know. A bad real estate agent can kill a sale. So, how do you find a good one?
Zillow has a great feature with real estate agent reviews. It shows how many properties they have sold and what customers have to say.
I contacted several of the agents with excellent reviews then picked one to do my listings. The one I picked only wanted a 90 day listing and has a written offer that I can cancel anytime with no cost. Translates to… they have confidence in their ability to sell a house.My listing started on Wednesday. It took a few days to take pics and measurements and get it on MLS on Friday. Yet, yesterday I got 3 written offers and two are for cash for MORE than my list price. One offer is for $12,000 more than I listed it for but they need financing. Today they have 8 more showings of one house and 6 showings of the other house.
The agent just called to suggest that we do showings only today and call for the highest and best offers for both properties by 5pm.
DOM — 4
Honestly, it makes me kind of sad to sell these houses. I’ve owned them for a long time. The cash flow is excellent.
But taxes are high. And I know that I can move the money offshore, build houses here or just put the money in the bank in Panama and still make more than I would owning the houses in the US. Plus, I think the US housing market is ready for another crash so the chances of getting these kinds of cash offers will not happen again for at least 7-8 years.
What’s your market like? Is it time to sell sell sell?
Hi Jackie!
Hope all is well with you?Texas IS a hot market …. right now…. Take advantage while you can!
So far what I’ve seen in Dallas is that the retail sector move in ready houses is ok, but it’s the buying season before kids go back to school.
The looming factor here that no none is addressing yet is the collapse in oil prices. In Midland/Odessa… Lots of unemployment ! Overnight! It hasn’t caught up to a visible factor just yet here…. but it will just like before. Texas is an energy state… don’t forget that! It benefits from high crude prices and busts with low prices.
But then again… I could be and am probably wrong…. jus sayin’!
On another note… when I sell retail, I use the flat fee MLS listing service AFTER I’ve exhausted all other avenues and usually pay around $250 for the service. Buyers agent gets 3%. If they bring a quick close buyer, I give them a $500 bonus…. they seem to like that!Angel G.
Hi Angel
Luckily oil is only one of many revenue sources for Texas. Some areas, like Midland, are hit harder by lower oil prices. Dallas has a lot of high tech and pharma which are hiring like crazy.
I considered the flat free MLS listing for selling my houses. But because I’m 3,000 miles away, I needed a real go-getter agent to get these houses sold before interest rates go up and before school starts. I needed to sell while the market is red hot. A delay of a month could easily cost me $5000.
As of 9am, I had 3 offers on one of the houses and 2 offers on the other house for sale. We decided that we would take offers through 5pm today and told everyone to present their highest and best offer. I will find out soon what the best offers are.
Already both of the houses have cash offers for more than my list price. So, the agent earned her commission with the aggressive marketing campaign she did for the 3 days before it hit MLS. Finding an agent like this is like finding a needle in a haystack. I lucked out.
Ok, I got 5 offers on one of my rentals and 3 offers on the other
The house with 5 offers was 3 offers for cash and 2 with FHA financing. Obviously, I’m going with the cash offers which are both about $10,000 more than my list price. They both want to close next week. The net sheet of each of them is about $500 difference. One asked me to pay for a Home Warranty. Even though the other offers are for even more, they require FHA financing which could drag on forever then fall apart at the last minute.
The house with 3 offers has 2 for cash and 1 with FHA financing. All offers are for more than my asking price.
There was a Highest Bidder Sale going on today but starting at a retail price then going up up up.
I love it!
Now, I just wish there was a way to sell them and not do a IRC351 but still avoid taxes and depreciation recapture. Capital gains taxes are at 20% plus I will qualify for the extra 3.8% obamacare tax on these houses. That totally sucks since I don’t even live in the USA.
Who came up with the stupid rule that you have to give your hard earned profits to the government so they can spread the wealth? I don’t like it!
I’ll just pay the extra $1500 per house to do a tax free exchange to move the money offshore.
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