We've spent three months and about $10K getting our house ready for the market. Just as we were winding up the projects and lining up realtors to interview, we saw moving vans across the street and watched the neighbors unexpectedly move out. This was very surprising as there was no for sale sign nor was their house listed on the MLS sites. Several days after they moved out, new people began moving in. When we began to notice lots of different vehicles in the driveway and young adults going in and out of the house, we made some calls that confirmed the worst--they rented their house to college students!
One of the biggest selling points for our house is the neighborhood--it's considered exclusive and desired for the peace and quiet as well as the large, custom built executive homes. The house being rented has 11 rooms, including 6 bedrooms and a finished basement. We found out that the owners are renting the house on a room by room basis. They are advertising it through the residential life department of a local university. They are marketing the property to college students.
We immediately contacted other neighbors, and consulted with the city. They clearly appear to be violating the zoning laws and the city has begun an investigation. But the owners (who are living out of state) are not going to do anything about this (they insist it is within their right) until they have to. So it could take months to get this legally resolved and the students evicted.
I can't imagine anyone buying our house while this situation is going on across the street. The driveway is filled with cars that come and go all day and night. Unfortunately, we already bought another house about 50 miles away and need to get our kids started in school there in a few weeks.
Should we move forward with listing the house? My husband thinks we should. I'm afraid that our property will be tainted because of the "frat" house (the house is in clear view from our front yard) and end up sitting no matter how aggressively we price it. We lose lots of money if the house sits while we wait and hope this situation resolves, but we could stand to lose even more if we try to sell now. What would you do???