Owning a home that you do not want or need can happen for many different reasons. Maybe you have moved to another area to take advantage of a job promotion. Perhaps you have inherited a house in an area where you have no plans to reside or you own the house where your college student lived while seeking their degree in another city or state.
These are just a few of the reasons that homeowners find themselves with an extra home on their hands. If you have found yourself in this position and are struggling to decide what to do, these tips can help you decide whether a "home for sale" or a "home for rent" sign is the right thing for your family and situation.
Consider the condition of the current real estate market
The first point to consider when trying to decide whether you will put an unneeded home on the market for rent or for sale is the overall condition of the area's real estate market. If homes for sale are moving quickly, you will be more likely to sell your property for a nice profit. However, if the market is very slow and homes are languishing on the market for many months, it may be much more profitable to rent the home to good tenants until the real estate sales market improves.
Consider whether the costs for the repairs or renovations needed to rent the home seem affordable
Another consideration that will help you decide whether the home would be better listed for rent or for sale concerns the financial costs associated with your decision. If any repairs or renovations would be necessary to make the home compete well with other homes on the rental market, those costs must be considered in your final decision.
If the costs for repairs and renovations would be difficult to recover at the rental rates currently being charged in your area for similar homes, it can make more financial sense to sell the unwanted home as soon as possible. An as-is sale would produce instant cash, without requiring any money to be spent on repairs, permits, and inspections. Homes that may be good candidates for an as-is sale include those that are very old, inherited, damaged, or functionally obsolescent.
To get expert information to guide any decision about whether renting or selling a home is the best choice for your needs, take time to schedule a frank discussion about your goals and financial situation with a reputable real estate sales professional in your area. A real estate professional should help you understand the properties for sale in your home's area and offer advice.