Should you rent or sell? It’s a great question with a tricky answer. It comes down to how much money you can expect from selling versus how much money will come from renting. Here is some information that will help you make a wise choice:
PROS OF RENTING YOUR HOUSE
● Keep property as it appreciates in value
● Tax breaks could offset income tax on rent
● Rent income covers mortgage, taxes, and insurance
CONS OF RENTING YOUR HOUSE
● Possible damage to property
● Potential legal or financial problem with non paying tenants
● Honestly ask yourself if you mind being a landlord?
● You must have extra money for repairs and other incidentals
● Can you afford to rent out your house? Does it currently make financial sense?
PROS OF SELLING YOUR HOUSE
● Possibly tax-free capital gains*
● Frees up equity (if any) that you could invest or roll into a new house
● May give you a financial boost
● Your current house may not suit your current needs
CONS OF SELLING YOUR HOUSE
● You may lose money due to a slow market
● You may be priced out of purchasing another home in the same area
● You may lose potential property appreciation
● If you rent and buy another home you will have two houses to maintain which can be a headache
QUESTIONS TO CONSIDER
● Can you really afford to stay in your house?
● Is it time to move on and cut old ties?
● What are your long term goals?
● Will you make additional money if you rent the house now?
● Will the rent cover the mortgage, taxes, insurance, gardener, utilities and unforeseen repairs?
● Will I like managing a house or would I need to hire a property manager?
● Am I recently divorced or widowed and want to create an exciting new life?
● Can I give my children more if I sell and move into a more economical place?
The housing market is up and it’s hot in Silver Lake. Due to low interest rates, the improving job market and economy California housing is at a premium. There’s such a small amount of inventory that your house should sell immediately if the steps that I discuss with you are taken. Either way, if you choose to sell or rent your house, I will work to ensure that the process is hassle free and you make the most money possible.
*Check with your accountant to fully understand any tax ramifications and benefits that you could have from renting versus selling your property.
THE HOME SELLING PROCESS
Staging Your Home
● You don’t get a second chance to make a first impression.
● A review of 2,800 properties in 8 cities found that staged homes, on average, sold in half the time than non-staged homes.
● Most buyers make decisions about the property they see within the first 15 seconds of entering the home.
○ Location Cannot be changed
○ Size Difficult to change
○ Amenities Can be changed
○ Condition Can be changed
STAGING YOUR HOUSE
Adjusting cost-effective amenities and improving the general cleanliness and condition of the home is what we call “staging.” When a seller stages their home, one of two things happens:
● The home becomes more valuable than other comparable properties in that price range.
● The home gets moved up in price and becomes the lowest priced in the next higher price bracket or category.