Selling a home is not always the right move financially as a home can increase in value and provide rental income. A home that is in an area that has had a bad housing market recently is wise to wait out. Taking a huge loss on a home due to selling after a few years can put the homeowner behind financially for years. Staying in a current home could be the best move or a great option would be to rent the space out. The rent from your current home could cover or nearly cover a mortgage on a new home. Do the most research possible and discuss options with professionals ask their advice. Consult property management companies and dealing with renters can be nothing short of a nightmare without the proper exerience. Below are details to consider for a homeowner debating the options of staying in their current home, selling, or renting.
Health of the Local Housing Market
The health of the housing market in the area needs to be studied extensively. According to The Bell Team, which offers homes for sale in Braselton GA, notes a tip for selling the home for premium price, “This way, buyers can see the assets of your home and not the mess in it. The easiest way to do this is by creating your own sorting system. It’s better to empty out everything including your closet, because you never know what buyers might be looking for!” Finding a real estate company that you trust is important as these agents/agencies will let you know if it is a great time or subpar time to sell.
Cost of Rent in the Area
Home values could be down in a specific area but rental prices could be at a high. Holding off to sell is wise in this situation as surviving the dip in property value while earning rental income to maximize ROI. The cost of rent could be low while the home values could be very high and, in this circumstance, selling becomes a great option. Look at comparable homes in the area to get a better idea of how much your home would earn over the course of the year. Avoid having family members rent as it could become quite uncomfortable if they fall behind on rent.
Will the Home’s Value Continue Increasing?
The excitement of owning a home in an area where home values are skyrocketing is nearly unmatched. Knowing that you could sell your home for double or triple what you purchased it for offers immense financial freedom. Home values will come to a plateau in most cases so selling during the time of the highest value needs to be considered. Selling at the right moment can allow you to purchase in a less expensive area allowing you to significantly upgrade your home. Take a look at the trends in home prices as it will be easy to see when home prices start to level out.
A Home That is Paid Off Can Allow for Massive Savings
A home that is paid off can be a blessing as saving large amounts in interest payments on a mortgage allows for a higher quality of life. Renting a home out that is paid off is all profit besides insurance and property taxes. For those people looking to downsize renting out a home can pay rent or a mortgage at a new residence. A property management company can be quite useful as they market homes for rent, do renter background checks, and ensure rent will be paid on time. The fees for these companies are far lower than most people realize so research the best management companies in the local area. A home that is increasing in value as well as earning rental income can be that passive stream of income everyone desires.
Revamp Your Current Space Then Consider Your Options
Renovating your current home could be far less of a hassle than going through the selling or rental phases. Completely gutting the kitchen or adding an outdoor entertaining space can completely change the energy of a home. Take on renovations that add value to the home in case you do decide to sell. Take a look at similar homes valued at a much higher price to define which features add the most value. Improvements and renovations can be tax-deductible depending on the circumstances so take this into consideration. List out renovations or improvements that will impact the quality of living in the home daily.
Selling, renting, or staying in a home is going to be dependent on a plethora of factors. Take your time with this decision as you could have a change of heart over time. Discuss this with family or friends to help you make the best decision for your family.