Should You Rent or Sell Your Home in Washington?
It’s time to move on to the next stage of your life. You might have gotten a new job opportunity in a different state or are just simply ready for a change. Whatever it looks like for you, it’s time to figure out what to do with the home you’re currently living in.
The time to sit down and deliberate what to do with your home as you move on is now. Fortunately, there are only as many options as there are sides of a coin. However, this decision will take a little more thinking than a simple coin toss. The question is: should you rent or sell your home?
Renting Your House
Renting out your home can be a very tempting option. After all, when done successfully, it can do everything from creating a secondary income to funding your retirement. It’s a great option for some, but there are many considerations to ensure you’re making the right decision.
Is it financially viable?
Depending on the reason for your relocation and your plans for future housing, you may or may not be able to afford to keep the home if you have a steady rent paycheck coming in. Ask yourself: are you able to afford the mortgage payment and expenses, and keep rent down to a reasonable rate?
When evaluating the financial viability of this option, remember to keep in mind any extra hidden expenses that come with being a landlord. This may include everything from appliance repairs and replacements, carpet cleaning and replacements, and any other repairs that need to be made in between tenants.
Plus, depending on the age and condition of your home as you make this decision, you may need to make many of these repairs up front. Consider everything you will need to do to get your home renter-ready. This may include a fresh layer of paint, new flooring, cabinet retouches, and more.
What are your future housing plans?
Whether you’re making a life-changing decision to move to a new state and start a new lifestyle or you’re simply moving down the street, your plans for your next home could affect whether renting is a smart option.
For example, if you decided to try out living in a condo after living in a single-family home you’re entire life, you might want to hold onto your home just in case this big step doesn’t quite work out like you’d hoped. On the other hand, letting go of the past might be just what you need to move forward to this next stage of your life.
Can you tolerate being a landlord?
It’s three in the morning and you finally just got to sleep. Then, your phone vibrates on the bedside table next to you. The toilet in your home sprung a leak and your renter needs you to send someone out to fix it ASAP.
In some cases, being a landlord isn’t too difficult. You have dream renters who pay their rent on time, don’t damage your home outside of regular wear-and-tear, and don’t call unless it’s absolutely necessary. In other cases, things can go wrong – a lot – and you’ll want to rip your hair out. Don’t believe us? Just take these three examples of renter problems and see for yourself.
When considering renting out your home, make sure you’re prepared to deal with everything that comes with it. After all, it might not always be as easy as receiving a steady rent payment on the first of every month.
Selling Your House
When renting out your home isn’t a viable option, the other solution is simply to sell it. Selling your home may allow you to move on to a new house and even be the most financially viable option, especially in the condition of today’s housing market. These are a few questions you should take into consideration when deciding upon this route.
Do you need to fund your next home?
In an ideal world, everyone would buy one house, rent it out to pay the mortgage and fund their retirement, and buy a second home to live in. However, this isn’t very realistic – especially in today’s hot housing market in Western Washington.
Although renting out your home may give you a steadier income than a one-time payment, that steady income doesn’t easily translate into a down payment for your next move up. In order to move forward, it may be necessary to get that one-time payment and apply it towards your new home to give you a chance to move on to the next stage in your life.
What condition is your home in?
One of the main things that will affect selling your home is the condition as it stands today. Is the exterior paint chipping? Does the carpet look like it hasn’t been replaced in years? How many water damage stains are on the ceiling?
People often associate selling their home with doing lots of work to get it looking in the best condition possible to attract serious home buyers. However, there’s another option. Even if you aren’t able to make the repairs necessary to bring your home to a better condition, you might be able to sell it as is.
This way, you don’t have to make repairs, deal with the hassle of inspections, and you can even close in a way that works best for you – even if that’s tomorrow. To dive deeper, these are the pros and cons of selling your home as is versus fixing it up.