To Lease or to Sell?
September 20, 2011
Home owners who want to, or need to, make a move in this real estate market sometimes ponder the question: "Should we lease or should we sell?" The answer is "It depends".
Why would you consider renting rather than selling? Is the reason for considering renting due to the present reduced market value of your home? If so, then how long do you think you will be renting it out? What is your best estimate of when real estate market values will improve? Remember, if Congress does not change the primary residence exclusion, you must have lived in the property two of the last five years prior to the sale. How long will you hold on to the home? Will you be managing the rental yourself or will you hire a property management company to do so?
Then there are the considerations if you decide to sell. Do you have a loan against the property? Is it more than the property is worth? Are there repairs that might need to be made or that would enhance the value? Are you wanting to purchase another home?
A crucial issue in the "to lease or to sell" debate is the "why" of making a move. You, the homeowner must decide the value of moving on totally by selling or "moving on" partially by holding onto the home.
A real estate agent can be helpful in presenting you with a market analysis, but you are the decision maker as to which choice best suits your goals.
Home owners who want to, or need to, make a move in this real estate market sometimes ponder the question: "Should we lease or should we sell?" The answer is "It depends".
Why would you consider renting rather than selling? Is the reason for considering renting due to the present reduced market value of your home? If so, then how long do you think you will be renting it out? What is your best estimate of when real estate market values will improve? Remember, if Congress does not change the primary residence exclusion, you must have lived in the property two of the last five years prior to the sale. How long will you hold on to the home? Will you be managing the rental yourself or will you hire a property management company to do so?
Then there are the considerations if you decide to sell. Do you have a loan against the property? Is it more than the property is worth? Are there repairs that might need to be made or that would enhance the value? Are you wanting to purchase another home?
A crucial issue in the "to lease or to sell" debate is the "why" of making a move. You, the homeowner must decide the value of moving on totally by selling or "moving on" partially by holding onto the home.
A real estate agent can be helpful in presenting you with a market analysis, but you are the decision maker as to which choice best suits your goals.
posted by shirley harry at 9:41 AM
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