One of the most common questions from a vendor looking at placing their home on the market is “Should I sell or rent my home?”.
This is a serious question that requires a lot of thought from you, the vendor. The answer, of course, depends on your individual situation. It is crucial to weigh up your options and consider both the pros and cons of both selling and renting your home.
Each Real Estate market is different, so it is best to avoid the information and statistics in national news and newspapers. There are a few ways to access the correct and necessary information that you will require to make an educated decision.
First you'll want to speak to your local, professional selling agent and property manager. You may need to seek the advice of two or three agents to give you a spectrum of ideas on price and other factors involved. Of course, you could also appoint a professional valuer to give you an evaluation on your home in the current market, but sometimes their information is not as up to date as local real estate agents.
Often vendors who can't sell for the price they're after will settle on renting till the market heats up.
Here are five questions to ask yourself when tossing up on the decision whether to sell or rent your home:
1) Can I financially afford to sell my home? If you owe more than your home is worth, and you would have to bring money to the table when selling, renting could be your best option.
2) If I can financially afford to sell my home, should I wait for the market to improve? You need to figure out how long you would be willing to be responsible for that property? In a situation like this, think of the unexpected. How long will you have to wait for an improvement in the market? Are you willing to wait that long and will it be worth the wait?
3) Do I plan on coming back to that location again? If yes, it may be a wise move to rent your home out with the possibility of maybe moving back to that town/location one day. If the property won't suit your family needs and requirements in the future, selling might be the way to go.
4) Am I prepared to be a landlord? Being a landlord, especially if you are moving long distances away, can prove to be rather difficult. Though if you have friends, family and tradespeople that you know in the area, things will be much easier for you when maintenance and emergencies arise.
5) What costs and fees am I up for? Create a balance sheet on the holding costs of the property including mortgage payments, rates and utilities, insurance, landlords insurance and a rate of depreciation to things like soft furnishings, paint etc and management fees and costs with a Real Estate property manager V/s the rent that you would receive.
Finally, try to step away from the emotion of what it looks like to have someone else living in your home and possibly not giving it the same levels of love, care and attention that you have. If you are fortunate enough to have a perfect 10/10 tenant in your home, bear in mind that your home will never look as good as it used to again.
Ultimately, the end decision will be the right decision and this decision can only be made by you, the home owner.