According to CNBC, a new trend has emerged among those who are underwater on their mortgage, which means owing more than what the home is currently worth. This trend has been dubbed accidental landlords. Oftentimes, homeowners need to relocate for their job, but cannot yet afford to sell their home since it is underwater. These homeowners are opting to take on the landlord role. However, this is not always an easy role to take on, especially for novices. "When the market dropped, many people emerged with a life event prompting their need to move," Todd Allen, a real estate professional in Northern Virginia, told CNBC.
"Fortunately for many in the D.C. metro area with higher incomes and lending guidelines softening a little, individuals and families were able to qualify for the purchase of a second home, but their new landlord status did not necessarily generate positive income often they incur a loss. Furthermore, many of my own clients have learned many other downfalls in being a landlord." The growing number of accidental landlords is one of the reasons behind today's low inventory issues, real estate professionals say. Usually a buyer is also a seller, making the transaction a wash in terms of inventory, but if the buyer is not a seller, and instead becomes a landlord, inventory takes a negative hit, CNBC reports.
To learn how to price your home to sell, please visit: http://www.californiarealestatedirect.com/Am-I-Priced-to-Sell For the full story from CNBC,
please go to: http://www.cnbc.com/id/100764601Tags:- real estate news Accidental Landlords underwater