Should I Sell Or Rent My House?
9 Questions To Ask Before Selling Or Renting Your Home
Still not sure whether you should rent or sell? You should always consult with a real estate agent or professional before making any kind of decision. But to get started, these are nine key questions that you can ask yourself to help you make an informed decision.
1. How Much Equity Do You Have In Your Home?
It’s also important to determine if you need the equity from your current home or not. Home equity is the difference between what your home is worth and what you owe on your mortgage. If you have built up enough equity in your current home, selling it could be a good choice. The profit you make can be used for a large down payment on your next home or you can set aside for other purposes.
However, if you haven’t built up a lot of equity or don’t need to access it, renting out your home and collecting the long term income may make more sense.
2. Is The Neighborhood Rental- Or Owner Friendly?
When deciding whether to rent or sell your house, it may help to consider the qualities of your home and neighborhood. Maybe there’s a strong rental market in your area, or perhaps you live in a location that’s close to a local university or company. This may attract renters who are relocating to the area for school or work and help guarantee a good pool of candidates in the long term.
Alternatively, if your home is in an area where the majority of residents are homeowners or the area lacks attractive amenities, you may have a hard time finding suitable renters.
3. Did You Buy Your Home During A Buyer’s Or Seller’s Market?
First, it’ll be helpful to know whether you bought your home during a buyer’s or seller’s market. What exactly does this mean?
Since the housing market’s state at the time of purchase affects its cost, it will also play a role in determining whether you should now sell or rent. For example, if you bought your current home in a seller’s market when prices were high, you may want to also sell it during one to make some money back. If you bought during a buyer’s market and home prices have improved in your area, it may be a signal to sell. However, it might make sense to rent if you can make a profit from renting after meeting your mortgage payment.
4. What’s The Market Like Now?
Determining the current condition of your local real estate market can also help you decide whether it’s a good time to sell or rent. If your current market is slow, you might rent your house until you’re able to sell it for a higher price in the coming years.
On the other hand, if it’s a seller’s market, you may want to sell your home for its maximum selling price.
5. Will Your Homeowners Association (HOA) Let You Rent?
If you own a condominium or a home that’s managed by a condo or homeowners association, you may not be able to rent your home without the approval of the association. Many associations may prevent rentals or prefer to maintain a balance of owner-occupied-to-rental units. So even if you think renting is your best option, your association might not approve.