Renting a house that's for sale

[WhoseHouse]

So I'm looking for a place to rent (in Austin), starting in May. I've been looking at Craigslist and statesman online and everything just to get an idea of the area and the prices I can expect. I came across an awesome looking house in a good area for a very reasonable rent price. Well I called to inquire and it turns out, the house is for sale, but because of the current state of the market, they are renting it out through this agency. Basically, you get to live in a nice house for a great rent price, but at any point if the house sells you have to move out in 30 days. If you like another one of the houses the agency is renting, they'll move you to it for free. The guy was saying that right now houses are usually on the market for about ten months, which is a pretty ideal term for us. But obviously, you never know and we could have to move out in two months. What are your thoughts on this? Any experience with this type of agency?

 

[Ramathorn]

Honestly, doesn't sound so bad to me. Just get it in typing.

 

[Napoleon]

After a friend of mine's parents got divorced in early college, his mom did this. She would furnish the house with her stuff and if it sold, she had to move.

The problem was that her stuff looked nice in the houses (even though some houses didn't look that great) and therefore the houses seemed to sell soon after she moved in.

She moved about 3 times in a year or so until she lucked into a house that was overpriced. It was a two story made to look like a one story. She closed the door to the upstairs and never heated it, cooled it, lit it... When that place finally sold after 2 or 3 years, she lived one more place before she had had enough.

She went ahead and bought a duplex in a nice little area and has been there ever since.

So that's what I know about that.

 

[JohnnyM]

And you get the pleasure of having to constantly keep it clean to be shown, I would imagine.

I would want to know a LOT more about their ability to show the house and what notice you get before agreeing to anything like this.

If they put a lockbox on the property many agents will ignore a "Call First" on the listing and just take someone by....surprise, you're taking a ****, there's pron on the computer, and here comes an agent and some buyers.

I would only do this if they agreed that it could only be shown on certain days, or that you were given a 24 hr notice, and that they would pay for monthly cleaning.

Unless the price is just SUPER low it seems like it would be a big hassle to me. And by SUPER low I mean like 40-50% off.

 

[El Sapo]

I have lived in two houses that were up for sale and let me say I would never choose to be in that position again.

You might be getting a good deal on rent, but how can you really feel like you're 'home' when you are 30 days away from getting the boot at any moment? If you can handle that, then get used to no privacy and a small 'parade' of people coming through your house. You'll need to keep it in 'showing' shape all the time and people will just knock on the door unannounced while you're watching a movie, taking a dump, whatever and want to 'take a look around'. People will show up and walk around your yard, look in your windows, even if you're there. If there is a clause in your lease that you must have 24hrs notice of a showing (which I think is the minimum, legally) make sure anyone who just 'stops' by knows it and do not let them in.

Really, it comes down to very little privacy and having a 'home' that you never really can get comfortable in. For me, there is no amount of money saved each month that can justify it... but to each their own. Good luck.

 

[EuroHorn]

I wouldn't rent a house that is for sale. Primarily because of the reasons the posters said above. I am just talking from a seller's point of view and having lived through all the showings. Typically, they prefer you not to be hanging around the house when they come to show the house. In my case, they would call and establish a set 30 minute window when they would arrive and I would head out to not be around. Weekends are obviously worse. Also, you will need to be ready to move and have a new place lined-up if it sells.

 

[JC13545]

The ten months to sell a house is total BS, it all depends on many factors and you can not clump all houses into that category. If it is a good value and a good neighborhood, regardless of the state of the market people do move and need to buy a house so if it is not attractive to buyers it probably isnt attractive to you unless the only negative is its overpriced and in this case they may have quite a few lowball offers and people will still look.

Another thing to consider is most people try and move in the summer so their kids are not uprooted from school. The May-August months are by far the most active in the market and with interest rates plummeting I would expect some interest in the next few months.

 

[Touchdown_Texas]

I rented my house out this way thru craigslist when I decided to travel; advertised for a house manager and it was a win-win for both parties. She got in a 4500 sq ft home for $1000/mo (needed a temp place for several months while she was looking to buy), while I got to travel and had someone paying a good portion of my mortgage.

A friend of mine did it thru a 3rd party company and got in a similar size home for $1000/mo. Definitely recommend it for the right person - single or can relocate on short notice without a big deal, etc. Also beneficial for a long-distance seller to have someone upkeep the house, but I had a realtor and didn't require her to be available for showings.

 

[mishatx]

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