Buying or Selling a Home/To buy or not to buy?

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Expert: - 8/9/2010


Question
Hi! I have been renting the same house for ten years in Dallas, Texas.  The rent is very cheap ($600/mo.)- I get a lot for the money (kind of cruddy house but lots of land and privacy.)  During that time, I have fixed my credit, and inherited some money to use toward a down payment and repairs or improvements on a house of my own.  I live in Dallas, Texas, and there is a strong, though not definite, chance that I will move to the Kansas City, Missouri area (my hometown- ended up in Texas due to husband.)  This could happen as soon as next summer, or the year after, maybe longer; whenever the job market for English teachers improves up there.  My questions are:  Is it wise to buy, then possibly have to turn around and sell it again in a year?  Would I be able to recoup the money I put into it, so I can buy one in Kansas City so soon after purchase?  Would it be wiser to continue renting for another year, so I can keep my money safely in the bank, so I can be sure to have it if and when I can find a teaching job in K. C.?  I have always planned on buying a fixer-upper and love older homes (hate new builds/ cookie cutter neighborhoods.)  Also, a realtor I spoke to suggested I should plan on having it for 10-15 years before selling for profit and that he would be happy to manage the property for me and keep renters in it for a fee if I had to move. ???

Answer
Hey, Renee.

My own personal philosophy is that I should plan on living in a house at least five years before selling it in order to be able to sell and make money, so if I were in your shoes, I would continue renting until my location was definite. The exception in your case is if you can buy now and still have money to buy another home in a year in Kansas City, should you move there, without having to sell. You always make more money in real estate if you sell on YOUR terms rather than HAVING to sell.

Hope that helps.

Russel

Buying or Selling a Home

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Russel Ray

Expertise

Through home inspections, I provide an education about real estate. I'm one of those rare home inspectors who has been involved in real estate in many different capacities: as a Realtor (in Texas), as a property investor/flipper, as a teacher, and as a marketing expert (for Realtors and home inspectors). I believe that my experience as a Realtor and property investor provides me with a different viewpoint about home inspections in that I work for my Clients, but when there are other people involved in helping my Clients, then I firmly believe in helping them, too. That includes Realtors (both the seller's and the buyer's), repair professionals (e.g., plumbers, electricians, etc.). If I can get all the players (seller, seller's Realtor, buyer, buyer's Realtor, and repair professionals) playing in the same sandbox together to accomplish goals as a TEAM (Together Everyone Accomplishes More), then I believe I have succeeded in my job as a home inspector. My profession is, in my opinion, much more than simply documenting the condition of a property and then take the money and run. I am also a rare breed in that I don't believe that one inspection fits the needs of all Clients, and I have led the industry in understanding that fact. For example, the goals of a property investor are far different than the goals of someone buying a property to live in. The goals of a seller (a pre-listing inspection) are far different than the goals of a buyer (a pre-purchase inspection). To that end, I offer 14 different types of inspections, e.g., STANDARD, LIST, RENTER, BASIC, MAINTENANCE, SPOT, and more. I believe in giving the benefit of the doubt to all professionals in whatever industry they represent until they prove me wrong.

Experience

Over 42 years in all aspects of real estate--building homes, renovating homes, inspecting homes, Realtor.

Organizations
National Association of Certified Home Inspector, Better Business Bureau of San Diego

Education/Credentials
Graduate of Texas A&M University; College Station, Texas

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