Home Selling in South Bend>Question Details

Southbendhom…, Home Seller in South Bend, IN

What is the opinion of selling a house v. renting it? Pros and cons of renting?

Asked by Southbendhomeowner, South Bend, IN Thu May 31, 2012

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I think if you're planning on buying a bigger house, you should sell, and buy it NOW while prices and interest rates are low. Otherwise, if you can swing your next place without selling, you'll probably be better off being a landlord for the next couple of years.
0 votes Thank Flag Link Thu May 31, 2012
I agree with Tom on the point of deciding what your motivation is. If you think to hold off and rent until you can sell for a higher price, understand that higher price may not come around again. People who bought at or near the height of the market may never recoup the value they have lost. For that to be determined you need to contact an agent you trust who can give you an honest opinion based on your home and the current market conditions.

If you plan to rent you need a strong rental contract drawn up and discussed with an attorney who specializes in real estate law. I have been a landlord in the past and it was fine for some and on the other hand, one home had to have $17,000 in renovations after tenants left the house. You cant expect to rent and just think all you need to do is collect rent. You need to be actively checking on the house and the tenants and making sure they are keeping up the property as they agree to do.

Good Luck with your decision!
0 votes Thank Flag Link Thu May 31, 2012
I agree with Tom on the point of deciding what your motivation is. If you think to hold off and rent until you can sell for a higher price, understand that higher price may not come around again. People who bought at or near the height of the market may never recoup the value they have lost. For that to be determined you need to contact an agent you trust who can give you an honest opinion based on your home and the current market conditions.

If you plan to rent you need a strong rental contract drawn up and discussed with an attorney who specializes in real estate law. I have been a landlord in the past and it was fine for some and on the other hand, one home had to have $17,000 in renovations after tenants left the house. You cant expect to rent and just think all you need to do is collect rent. You need to be actively checking on the house and the tenants and making sure they are keeping up the property as they agree to do.

Good Luck with your decision!
0 votes Thank Flag Link Thu May 31, 2012
A lot depends on your particular situation and objectives. If you are hoping to puchase a new home, you should consult with a mortgage lender to see how that will affect your purchasing power. Often, rental income will need a history before it can be counted.

If you don't need to sell and are just looking for an additional income opportunity, make sure you know what you are getting into. What are vacancy rates in the area and what can you expect to bring in on a monthly basis. What upcoming repairs can I anticipate? Then make a business decision based on your findings.

My best advise would be to reach out to a trusted real estate professional, be it a Realtor, a mortgage lender, a real estate attorney, or a CPA. Take your time and gather as much information as you can.

Good luck!
0 votes Thank Flag Link Thu May 31, 2012
I can't think of too many advantages to renting vs selling it other than maybe holding off the sale until the market improves to the point where you would get more for it. How many years would that take?? There are some tax advantages to having rental income.

Disadvantages are many. The renters will be living there and that takes a toll on appliances, carpet, etc. Repainting will be needed at some time or several times in the future. Replacing things like appliances, heating and cooling, roof, decks, etc. If you find good renters life will be easier than if you find the bad renters that get behind and move out in the middle of the night owing money.

Good luck with it.
0 votes Thank Flag Link Thu May 31, 2012
It depends if you NEED to sell. If you do not have a must to sell now, you need to assess what the home is worth and how much you will net and is that acceptable. there is no doubt prices will rise in the future. When renting the key is having a good tenant who will pay and will not damage the house. Carefully check a tenants ability to pay and my favorite thing is to look at where they live now and how they take care of their home. That is probabily how they will take care of yours.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu May 31, 2012
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