When homeowners ask The Scout Group whether or not to sell their homes or rent it out, there are several factors which are to be considered before making the final choice. While the home sale process is faster and brings in the money in a lump sum, in other cases, the trickling income or profit earned in rent may be the best option. To ensure that homeowners faced with this dilemma make the best possible choice for themselves and family, below are some of the questions to ask and answer.
1. What is your financial situation? What are you going through?
Your current situation, financially, socially and career-wise plays an important role in the decision to be made. In most cases, homeowners who are in a financial mess may choose to outrightly sell the property while others who have moved to other states for their jobs or for relationship purposes may choose to leave the house as a backup plan thus choosing to rent it out. Most homeowners however usually want to move with the aim of upsizing, downsizing or having a neighborhood change. In such events as neighborhood change, it may be better to choose the rent option.
2. What is the address and subdivision of the home?
There is the need for property managers to complete a full market analysis of the home to ensure that it is one which will make good for a property investment or one that will make a great more financial sense when sold instantly. Factors such as requirement for repair or turn-key home also play a major role in the overall decision which is to be made by both the property managers and the homeowners.
3. What do you owe on the home?
This is perhaps one of the most significant questions to be asked and answered. In most cases, homeowners are expected to have paid a huge amount of their loans on the home before considering a sale or a rental. However, in some cases, the homeowner may be in debt, a factor which may negatively influence the overall move. There is the need to estimate and calculate important financial figures such as the payoffs for all mortgages, including the home equity lines to ensure that the home equity, if any, is properly determined. There is also the need to know whether the homeowner has defaulted in the payment of mortgages or HOA payments.
4. What are the trends in the neighborhood and community?
Before making the decision to sell or rent out the property, there is also the need to come to the understanding of the trends in the neighborhood. If the neighborhood trend tends to favor rental properties, then renting out the property may be the best decision in terms of the financial aspect of the move.
5. Are you able to sell your home?
In the event the homeowner owes more than the market value of the property, there is the need to consider if there is cash on the table and in what form, liquid or in 401k. There is also the need to ascertain whether the homeowner qualifies for short sale, and to consider what the pros and cons of these options are. If you want to learn more about the pros and cons of home selling, talk to the professionals at The Scout Group.