When moving to a new home, do you sell the old one or rent it out? Both of these options have their pros and cons, and you should weight them carefully before making a decision. These four questions will help you determine which route to take:
Do You Need Upfront Money?
If you want a big sum of money upfront, you have no option but to sell the property. This may be the case, for example, if you want money to use as a down payment for another property. Renting out properties is a long-term game and will not give you money fast enough. Don't forget that you may not always have tenants, especially in the beginning, and you also have to market the property.
Are You Permanently Moving Out Of the Area?
There are many reasons one would want to move out of their primary residence. Maybe you got a job elsewhere, want to retire in a different location or are going on an extended vacation. The rental option is ideal if you will only be out of the area temporarily but plan to come back; it would be too much of a hustle (and probably uneconomical) to sell the house and buy another one when you come back after a couple of years.
Can You Make Profit from the Rental?
Another thing to consider is how much money you can make by renting out the property. This means you should calculate all the monthly income you can get from the property as well as the monthly expenses. Don't forget to include all the streams of income the property can give you, from coin-operated laundry machines to extra cleaning services. If your calculation doesn't come up with a reasonable profit, then you are better off selling the property since you shouldn't spend more on a rental property than you can get from it.
What's The Economic Outlook of Your Neighborhood?
This is another thing you should look at before deciding whether to sell or rent the property because it will determine how much money you can make from each decision. For example, if the economic outlook is bleak and the property prices are likely to fall, you are better off cutting your losses and selling the house now before its value plummets. You should only postpone the sale if you think that the area's property prices are likely to appreciate in the future, and this depends on the economic outlook of the neighborhood, among other things.
Contact a real estate agent for more help.
Once you sign the sale contract with your listing agent, there's a good chance that things will start moving quickly. Your agent will want you to stage your home for the listing photos, open houses, and showings. If you've never experienced the staging process, you may not know exactly what to do or where to start. The information on this site will help you to not only understand what's expected of staging but also offer tips for you to maximize your efforts without investing a lot of time. I hope the information here makes your home sale process a little bit less confusing and a little easier to manage.