Deciding Whether to Sell or Rent Your Home
People move for all sorts of reasons. Sometimes it’s for a career change or to pursue educational opportunities. Other homeowners might opt to move when their current home is either a bit too small or maybe too large for their needs.
But there’s one thing that all homeowners who are moving have in common. They are all faced with the decision of what to do with their current home. One option is to keep it and turn it into a rental property. Some homeowners look to sell so they can put any profits into their next phase of life (or next home purchase).
There’s no right or wrong answer for what to do with your home when you decide to move. It’s really just a matter of figuring out which option is the best for you in the long run. Here are some things to consider.
Look Into The Current Market Trends-
NAR (National Association of Realtors) publishes current trends and statistics in the housing market by region. You may want to explore what the market is doing in your area. Is your city experiencing a housing boom? Has your home increased or decreased in value? Ultimately, it’s probably best to speak with a real estate professional who can advise you through the process. Each homeowner’s situation is a little different so don’t try to go it alone.
Whether you want to sell your current home and buy another one, or keep your home and buy, a real estate professional who knows the industry and understands where the market is headed can help.
Consider The Future Of Your Neighborhood-
Think about your neighborhood or the area where your home is located. Are homes in your neighborhood in high demand? What are the schools like? Is your home convenient to area attractions and amenities? If you have questions, consult with a real estate professional to find out if your neighborhood is on the rise.
Are home values in your area expected to increase over the next few years? Might be a good time to rent your property and let the value appreciate. Factors affecting the appreciation of your home include housing inventory, the job market, and population growth or decline.
Vacancy and Being a Landlord-
If you decide to keep your current home and try to rent it, can you afford a time of vacancy? Can you set aside enough money for an emergency fund in case you have trouble finding a tenant? Do you have the time, knowledge and resources to be a full-time landlord?
These are all things you should consider if you opt to keep one home and buy another. Perhaps you might want to work with a property management company to assist you. The Northshore office of CBWW specializes in property management and can help manage your property for you, including vetting tenants, collecting rent and maintenance issues.
The Down Payment-
Another key factor in determining whether you sell or decide to rent is the down payment on your new home. Simply put, can you afford to make a down payment without the proceeds from the sale of your current home? If not, renting your current home may not be the best option for you.
When trying to get your finances in order before buying or selling, it’s good to meet with a home mortgage pro who can help you make sense of the process. Did you know five of our East Tennessee residential real estate office locations have a dedicated mortgage professional on-site?
There’s a lot to consider when moving and there’s no right or wrong way of doing things. Just make sure you do the research to find out what’s best for your individual circumstances.