hana Posted July 27, 2012 Share Posted July 27, 2012 Sell very cheap, rent, try to donate? Background: We paid $108,000 for our house 12 years ago, and put probably another $15,000 into it (new furnace, chimney work, hot tub, new appliances, etc.). For various reasons, including significant violence and other crime in our city, we decided to move, knowing that our house would not sell for much even though we are in one of the better areas of the city. The city's valuation of our house is about $59,000. We have moved, very far away, and the house is empty. We have neighbors watching the house, we left lights on, etc. We do not have an alarm system, because, frankly, our very limited police force do not generally have time to respond to residential alarms. We put the house on the market for $54,500. In the month the house has been for sale, there has only been one showing. There would have been a second, but when they arrived, they discovered the house had been broken into. The copper pipes were stolen, and there is a little other damage. The insurance adjuster is very clearly working to get away with as little as possible. In the wake of this, we lowered the price to $45,000. It's only been a couple days, but no interest. So, now: Theoretically, our insurance will cover 30 more days of the house being empty. After that, we can get vacant home insurance but it will cover ONLY wind, fire, smoke, and it costs about $3300/yr. (to only cover to the sale value, not the original value--that insurance was $8900/yr.). In all likelihood, our policy will actually be cancelled after this claim--they would still need to give us 30 days notice. We will get the pipes replaced, but we're not sure how soon to do it, as we'll likely be broken into again at this rate. Which of these options would you choose? 1. Keep the price at $40,000 or $45,000? 2. Lower the price to $30,000 or $35,000? 3. Lower the price even more? 4. Try to rent the house? The rental market here is so bad also, that beyond the regular risks of renting, we would likely would not make anything--maybe $50/month--above the cost of insurance and taxes (if we used a rental management service, as we would need to do), so there would be little money to repair damages or wear/tear. Our realtor would prefer that we not rent because it can be so hard to get tenants out. 5. Try to donate the house to a charitable organization and take the tax deduction? I don't know how realistic this is in our city (I've heard they accept only 10% or fewer of offered houses), but if it is possible, we would need to do it sooner rather than later (in case more theft/vandalism happens). It's a lovely house, and it served us well, and we hate to see it fall apart. We really hope another family who has good reason to stay in the city will be able to live in it. Quote Link to comment Share on other sites More sharing options...
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.