Selling vs Renting

Deciding whether to rent or sell your house depends on numerous factors, including your financial goals, the housing market, and your personal circumstances. Here are some key considerations to help you make an informed decision:

Current Market Conditions

• Seller’s Market: If the market is favoring sellers (high demand, low supply), you might get a higher price for your home.
• Buyer’s Market: If the market is favoring buyers (low demand, high supply), it might be better to wait or consider renting until conditions improve.
• Calculate your equity (current market value of the home minus remaining mortgage balance). High equity can be a good incentive to sell.
• A Traditions Realty Agent can help you research the rental market in your area to estimate potential rental income.
• See NEFAR’s market stats here

Financial Factors

• Compare potential rental income to your carrying costs (mortgage payments, property taxes, insurance, maintenance).
• Selling a home can incur capital gains taxes, though you might qualify for exclusions if it is your primary residence.
• Rental income is taxable, but you can deduct expenses related to maintaining the rental property.
• Being a landlord requires time and effort for maintenance, dealing with tenants, and handling emergencies. Consider whether you want to hire a property management company if you decide to rent.
• Consider the long-term value appreciation potential of your home. If you expect significant appreciation, holding onto the property might be advantageous.
• Strong rental demand and low vacancy rates suggest a good opportunity to rent. High vacancy rates and declining rental demand may make selling more attractive.
• The Immediate need for a hefty sum of money (e.g., for another investment or debt repayment) might necessitate selling.
• A stable financial situation might allow you to take on the risk and potential rewards of renting.
• A home in good condition is easier to rent and fetches higher rent. If significant repairs are needed, selling might be a better option to avoid upfront repair costs.

The Decision-Making Process

Carefully weigh these factors to decide whether renting or selling your house aligns best with your financial goals and personal circumstances. Speak with real estate agents, financial advisors, and tax professionals to understand the implications of each option. Traditions Realty can provide up to date marketing values. Contact us to set an appointment today.