Forget the big debate about renting versus buying. Today's hot topic in real estate is renting your home versus selling it. More and more homeowners are considering becoming landlords rather than test the market. But are they missing out on a seller's market?
In markets where home prices continue to appreciate, homeowners can leverage the opportunity to sell. At the same time, some rental markets have never been better. Here are some questions to consider when deciding whether to rent your home or sell it.
- Where is home price appreciation headed in your market?
- Is there a shortage of inventory in your area?
- What is the List-to-Sale Price ratio in your neighborhood?
- Do you have positive equity or are you underwater on your mortgage?
- Do you have other needs that may require you to move?
- Do you understand the steps involved with becoming a landlord?
- Are you prepared to undertake the work of being a landlord?
- How much can you charge for rent?
- Do you know how to make return on investment calculations?
- Will you be able to achieve positive cash flow in your market?
- Does the property need upgrading?
- Do you have capital to maintain the property?
- Do you have purchasing power for a second property?
Not sure whether renting or selling is right for you? A Carrington Real Estate Services agent can help you understand market activity in your area and answer questions that impact your decision. Contact your local agent today.