Moving is a huge and stressful undertaking. Americans move about 11 times during their lives, on average. Some families move much more than that, while others find their dream home early on and can stay there permanently.
People who leave their homes are left with a choice: sell or rent?
3 Reasons to Sell Your Home
Moving on means it's time to let go of the past. Selling your home means you'll likely never be able to visit again, but you can reap the immediate benefits. Plus, you can focus on your brand-new house, where new memories will be made.
1. Follow the Seller's Market Cycle
The idea that the real estate market fluctuates between buyers and sellers has some evidence behind it. The cycle switches about every 18 years, and there are either more houses available than there are buyers. The seller's market remains strong right now, and there is a bit of a housing shortage.
A seller's market allows you to be picky. Plenty of buyers want the house, so you'll be able to choose the right deal that will help you part with your former home. There likely won't be another buyer's market for around 10 years, so now might be the best time to sell.
2. You Don't Want to Be a Landlord
Renting a house means someone will be living there under a lease and you will be their landlord. In most states, landlords are required to repair anything in the home to keep it safe and fit to live in for their tenants. To do so, you may have to have a disposable income. If you don't want the extra stress, you don't want to be a landlord.
Still, you don't have to be a landlord just because you're the property owner. You can always enlist the help of a property manager, who manages many different homes. This might be a good investment if you have more than one property.
3. The House Needs Work
You’ll have to get your house up to par before putting it on the rental market. You can still sell your home for a decent amount even if it needs updates and upgrades, but it might be more difficult to find someone to rent.
Interior aesthetics are more popular than ever these days, and people want to live in a functional home that also looks good.If you have the extra funds to do some small DIY projects, keeping the house might be worth it. Otherwise, the responsibility might be too much on you while you're feeling the stress of the move.
3 Reasons to Rent Your Home
Selling your house after you move isn't the only option. You can always choose to rent it out. This is an attractive option in this market because more people are looking to start their lives somewhere new.
1. You Can Use It as Passive Income
Some people pick up a side hustle that can make them money on the side. However, you don't always have to work to generate additional income. Your home can become an excellent opportunity for passive income if you have the money.
Passive income in real estate happens when you invest in properties you do not live in. You can use the extra money you gain from a tenant's rent to fuel your retirement savings and achieve other financial goals your family has set. It's an excellent idea to keep your family afloat and give you some extra funds to tuck away for a rainy day.
2. You're Attached to the House
You've spent part of your life in your old home, so it's only natural that you still feel attached to it. This house could have been the first one you built or bought, and you might not want to let it go so easily.
If you still have an emotional attachment to the house and want to keep it in your family, consider renting it out. That way, you'll be able to make some income off it.
3. The Home-Buying Market Has Cooled Off
When the market is hot, you may have so many offers on your home that you don't even have time to see them all before you accept one. Unfortunately, not every year is hot for real estate, even if it's a seller's market. The seller's market is still proving volatile in 2022 at 15% higher than the previous year, but it may not always be that way.
The inflated prices may have gone down by the time you're planning to sell your house. You may not want to sell when you think you can get more for the home you’ve loved for so long. If you wish to wait until prices are red-hot again, you can rent it out until you're ready to sell.
Rent or Sell: What's the Verdict?
Honestly, you may not find a clear answer. The best option for you and your family is to choose whatever works best for your situation and the housing market in the area. The choice isn't always so clear-cut, but the good news is that it's all in your hands.
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