There will come a time when you will ask yourself whether it makes better sense to keep or sell your home. You could be planning to buy another house or wish to relocate to another city or state. You might have gotten a job offer elsewhere that you can’t afford to say no to. There are also instances when you are obliged to move houses even if it is against your will.
All these and other circumstances can make you think about how you will tackle homeownership or let go of your property at the same time. Is it better for you to keep the house and become a landlord instead? Or should you say goodbye to your home and cash out?
There is no easy way to determine whether selling or keeping the property is the best choice for you. But some things can help you make the right decision. Knowing the basics and what you should consider will make it easier for you to come up with a decision that will best benefit you.
There are pros and cons to renting and selling your home. Knowing what’s in store for you in case you choose one over the latter will give you a better idea of what option is more favorable in your situation. Here’s what selling and keeping your house has to offer.
Pros of Selling vs. Pros of Renting It Out
Selling the house enables you to say goodbye to homeownership responsibilities on a property you no longer plan on keeping. You get to enjoy the value of your home in cash. You can then use this to buy another home or other endeavors.
Renting out your property allows you to keep the house under your name and make revenue in the process. You can enjoy homeownership despite you not being the main resident of your home. You still own an asset that, more often than not, increases in value over time.
Keeping the house allows you to experience becoming a landlord. This can open your mind to real estate investing and enjoy the perks of becoming a landlord. You might even like being a landlord so much that you might want to venture into rental properties.
When Selling Makes Better Sense
Ask yourself the following questions. If you answer yes to most of the questions, selling can be the best choice.
- Are you tired of home maintenance and repairs?
- Are you ready to say goodbye to your house?
- Do you need a lump sum of cash asap?
- Do you have enough equity?
When Renting It Out Makes Better Sense
Some homeowners are having second doubts about selling their homes. If you are still unwilling to let go of your house, then consider renting it out instead. This way, you can make money out of your home without selling it.
Renting it out can be worth it if you are willing to become a landlord. As long as you are ready to face the challenges of renting out the property, consider renting it out. If things don’t work out, you can always choose to sell as your last resort.
Best Practices When Renting Out Your House
Many homeowners are not sure how to manage their rentals. If you want better peace of mind, consider hiring a property manager. There is no reason to think that only owners with multiple rentals can leverage services offered by property management firms.
When renting out your home, it helps to screen your tenants well. Your search should not stop after finding tenants willing to pay you with your set rental price. You want to find quality tenants who already have a good record for renting out units.
Be sure to save enough cash for unexpected costs. You may already be practicing regular home maintenance and repair. Be sure to also keep rainy day funds for any unexpected expenses.
Best Practices When Selling
You can streamline home-selling by working with the right professionals. For instance, a local real estate agent can help you find the best serious buyers looking for a house just like yours. You can eliminate the guesswork that comes with selling houses when you have the right experts guiding you.
If you can, find ways to boost your property’s value. Improve its curb appeal and stage the property before listing it on sale. Depersonalize the house to help buyers imagine themselves living in your home.
Take professional photos of your home as part of your listing photos. Never attempt to hide major issues and, as much as possible, carry enough property insurance. This will protect you against unexpected costs if a buyer has an accident when trying to check your home.
Don’t rush your decision to rent or sell your home. Take your time in making the decision and weigh in all the pros and cons. Remember that you have a big decision to make that requires lots of thinking.