When homeowners ask us "should I sell my home or should I rent it out", there are a series of questions that we ask the homeowner in return to help them evaluate all of their options and arrive at the best solution for them. Because no two situations and no two clients are the same, everyone answers these questions differently. Therefore, a personal and confidential conversation is best.
1. "What is going on? What is your situation?"
Usually the homeowner either wants to move (wants to upsize, downsize, change neighborhood, etc.) or has to move (relocation, deployment, change of relationship or job, etc.) and does not know which way to turn because their numbers are usually very tight. The more information that the homeowner shares, the better. We know that some of these situations are sensitive but it is so important that we have as many facts as possible.
2. What is the address and subdivision of the home?
We need to complete a market analysis of the home both as a sale and as a rental. Is the home in need of repair or is it turn-key? These answers help us arrive at a realistic value. We prefer to be conservative on our numbers so that you can plan your move accordingly. If we get more money than planned - great!
3. What do you owe on the home?
We need to know the payoffs for all mortgages, including home equity lines so that we can calculate how much equity, if any, the homeowner has in the home. We also need to know if the homeowner is behind on mortgage or HOA payments and, if so, how far behind.
4. What are the trends in your community?
Are homes appreciating or depreciating? What are the employment and new construction forecasts in the area? What do we see happening? We are involved in our communities, attend HOA meetings and stay current on the news. We can share our thoughts on the future values in the community.
5. Are you able to sell?
If you owe more than market value, do you have cash to bring to the table? Is it liquid or in a 401k? Do you qualify for a short sale? What are the pros and cons for you of both of these options? We are Certified Distressed Property Experts and have helped many homeowners through the short sale process. We will weigh all options for you.
6. Are you ready to be a landlord?
If you are leaning towards renting out your home, do you have the temperament to be a Landlord? Can you handle the landlord/tenant ups and downs? We want to make sure that you have a realistic picture of what it is like to be a Landlord and that you understand the responsibilities. We strongly suggest that you hire a property manager so that you are not dealing with the day to day issues of property management. We will review all of this with you in detail.
After this discussion, usually the answer to the question - "should I sell my home or rent it?" becomes obvious for you. By offering both sales, rentals and property management all under one roof, we can have an honest, open dialogue so that we can find the right solution for you and your family.
