When you’re moving, the first question to answer is, “Where am I going?” But the second and equally important question is, “What should I do with my current property?”
If you own your home, you have two options: sell to a new owner or rent to tenants. Which is the best option for your situation? Learn more about the considerations and benefits of each so that you can make an informed and strategic decision.
Reasons To Rent Your Property
In many cases, renting may be a more feasible solution than selling your property. This is common for homeowners who know their move is only temporary. If you plan on returning to your current city in the near future, renting out your home provides security upon your return and may cost less than selling it and purchasing a new home in a year or two.
Other homeowners hold off on selling because they predict that home values will rise significantly in the next few years. If you expect your home’s value to surge within the next five years, renting it out a while can help you take advantage of the appreciation in the future.
It’s also possible that your mortgage loan balance is greater than your home’s current market value, which makes it very difficult to sell. Renting may offer a way to gain equity and save money before you sell.
Just be sure to consider the high costs of renting your home before you commit. As long as the costs don’t exceed the revenue you’d make, it’s a choice worth considering. Rental costs include home maintenance repairs, landlord insurance, property management fees, advertising, and periods of vacancies.
Reasons To Sell Your Property
On the other hand, selling may be the most profitable and logical choice for you. If you need to access your current home’s equity to purchase a new home, then selling is the best choice. That way, you can use the proceeds from your home sale to fund a down payment, moving expenses, and other purchase costs.
Consider whether it’s a “seller’s market” in your area as well. A seller’s market is defined as low housing inventory matched with high buyer demand. Eager potential buyers will give your home a great deal of attention as soon as it hits the market since they have such a limited supply from which to choose. You may even be able to benefit from bidding war in this situation.
Finally, it’s wise to sell your property if you wouldn’t be able to charge enough rent in relation to your home’s value or mortgage. Some homes simply don’t make good investment properties.
Before you finalize your choice, call (239) 542-6906 to benefit from the professional guidance offered by the experts at Douglas Realty Property Management in Southwest Florida.