Sell or Rent your Current Home?
Many current homeowner know the advantages of home ownership. Like many of us our family has grown or we are empty nester that means we are ready to move up or downsize. Or simply looking for better opportunity and moving out of the area. What is the best approach to this next step in our lives?
There is no one solution fit all needs. Lets evaluated each scenario to better understand your current needs and best solution that will work for your life style.
In past couple of weeks I had about 8 listings appointment and interestingly all of them are so different in their nature that I do have a lengthy brainstorming discussion with my clients to determine best approach and guide them through this process.
We have home owner you will take a cut to move on with his/her life and buy bigger/smaller home. Swallowing a 10K-20K loss on current home will make up by purchasing their dream home with that much less amount or bit higher. I know this one was simple one.
We have home owner you have refinanced their homes when the price of their current home was higher than today’s market price. They will owe to bank if they sell their current home and plus the selling expenses. Depending on the financial situation the sellers may want to rent their current home in some cases the rent and the mortgage payment will break even or few of the homeowner took couple hundred negative cash flow on their homes. If you are not comfortable being a landlord try it first if you are still think this is not something you can handle higher a professional management company. It will cost you but in the end your property value is more important then loosing few hundred dollars a month.
We have home owner you want to sell and rent for couple years. Why simply because they think the market is going further down and they wanting to reap whatever equity they have at this point. If you are living in the current home calculate they rent versus owning benefits including able to deduct the interest on the home.
Other categories of homeowner are who bought new construction with the hope they could sell their current home for certain price. In this unpredictable market place many builders are offering incentives to get your current home sold rather than default on their new purchase. Few homeowners don’t want to loose their sleep with new mortgage and higher interest rate then their current home they have walk out and defaulted on their new purchases. While others have taken whatever they can get and financial adjust their life style to make the mortgage payment on their new homes.
Home buyers you went and bought their dream home before selling their current home. For them I would say if you are willing to take whatever the market is offering in your previous home then take it and move on with your life. If you cannot let go rent your current home and may be down the road give your kids or someone you love as a gift.
I understand many of us have most wonderful memories of our life and cannot let go our home because of that. Hiring a professional helps you to guide through this emotional and stressful process of selling your home and achieving your next dream of your life. Their may be many more version of the each situation. Consider what's best for you and your family.