If you own a home and you plan on moving (or you’ve invested in a property that’s not your primary home), then you’ll want to figure out what to do with it. Selling a home might be the first thing that comes to mind, but there’s another option: rent the property.
The following are 3 considerations when deciding whether to rent or sell a home:
- Local real estate market – A “seller’s market” is the best time to sell. It means there are a lot of buyers and a low supply, so you’re more likely to sell your house at the listed price. Check local listings for properties similar to yours. See what they’re selling for and how long they’ve been on the market. If they’re selling for lower than what you expected and are taking a long time to sell, then selling a home might not be worth it.
- Profit Potential – If you can make a significant amount of profit on selling a house due to increased demand, you might want to go that route. This is especially true if the potential rental income barely covers expenses, including the costs of your mortgage and maintenance.
- Rental property upkeep – Having a rental property income can be nice, especially if you’ve paid your mortgage. Keep in mind: As a landlord, you will be responsible for maintaining the house. Unless you hire a property manager (which can be costly), being a landlord may take up a lot of your free time.
These are just a few things to keep in mind when deciding between selling a home or renting it out. For more advice on buying or selling a home, contact us at Randy Lindsay today.
A seller’s market is when the inventory of homes in an area is low but demand from buyers is high. A seller’s market puts home sellers at an advantage. They have more leverage when it comes to negotiations because there are more buyers competing against one another.
Buying a home in a seller’s market can be challenging, especially if you’re on a strict budget. Here are tips to successfully buying a home in a seller’s market:
- Add an escalation clause – Even if you make a strong initial bid, consider adding an escalation clause for 2-3% if it’s within your budget. Doing so will allow you to automatically bump your offer up if the seller has another bid higher than yours.
- Appeal directly to the seller – Send the seller a letter explaining who you are and why you want to buy the house. If the seller has an emotional connection with you, your bid may become a priority even if it’s not the highest.
- Provide flexible terms – If you can’t compete with your offer, consider non-price factors. For example, offer a flexible closing date that appeals to the seller’s needs. You can also waive certain contingencies.
- Submit a strong offer – You may be tempted to start low, but this strategy seldom works in a seller’s market. A low bid may be ignored. Odds are the seller will have another bid lined up anyway, which means you’ll lose out to a competing buyer almost immediately. You’ll rarely have the chance to counter since many sellers will have more than one offer to choose from in a seller’s market.
Keep these tips in mind if you’re buying a home in a seller’s market. For more professional real estate advice, be sure to speak with a local real estate agent at Randy Lindsay today.
As a home seller, you are legally obligated to reveal all information you have about the house you’re selling, including knowledge of any existing issues. Generally, it’s best if you make the necessary repairs prior to putting your house on the market. Few buyers want to deal with repair work unless they’re investing in a fixer-upper.
As soon as you accept an offer, a home inspection will need to take place. Who pays for that home inspection can vary.
Why Is Home Inspection Necessary?
A buyer won’t want to be surprised by expensive problems after buying your house. Even if you’ve had a previous inspection and have invested in repairs and renovations, the buyer(s) will want another inspection of their own. Perhaps there have been issues that were overlooked or new issues have developed.
Do You Need to Pay for It?
Usually, the buyer will pay for the inspection. However, it’s not uncommon for sellers to pay for the inspection if negotiated. If you’re facing a buyer’s market, buyers may have more negotiating power. They may request you pay for the home inspection.
If your house has been on the market for some time and you haven’t had many interested parties, the cost of the inspection might be a valuable incentive. Generally speaking, a professional home inspection costs between $279-$399. The cost varies based not on the size of your property but also depends on where the property is located. The national average, according to Home Advisor, is $388.
Who pays for the home inspection is often part of the negotiation process. For more advice about buying or selling a home, be sure to contact us at Randy Lindsay today.
When buying a home, it’s important that you do a professional home inspection prior to closing. This provides you a chance to find any problems that the seller has to take care of (whether via a credit or by doing the repairs) — although you can usually back out of a deal as well. However, even after all of the repairs have been made (or if no issues are found), you’ll still want to do a final walk-through right before the scheduled closing date. Doing so allows you to do one last check before you sign on the dotted line. The following are a few tips for doing a final walkthrough:
- Check previous issues – If you found any problems during your home inspection that the seller agreed to repair, then make sure that those problems have been fixed.
- Check garage opener – If the house comes with a garage, make sure that the door and the remote work properly.
- Inspect all the lights and outlets – Go through the home and check every light. Plug your phone into each outlet to make sure it works as well.
- Test all of the appliances and fixtures – Make sure all of the home’s appliances and fixtures (such as faucets) are still in working order.
- Make sure everything is cleared out – At this point, the seller (or whoever was living in the house) should have moved out completely. Make sure no personal belongings or garbage was left behind.
- Look for damage – Even if you didn’t uncover any damage during the home inspection, new damage may have occurred since then. Look for leaks, mold, water damage, and general damage to the home.
Always do a final walkthrough before you close on a home. For more tips on buying a home, be sure to contact us at Randy Lindsay today.
In an ideal world, the moment you stick a for-sale sign in your front yard is the moment buyers line up with offers. Unfortunately, selling a home is not that easy. The home selling process can take some time. To properly plan around this process, it’s crucial that you understand the timeline of selling a home. The following is a general breakdown of the typical home-selling timeline:
- Researching the local market – To understand the value of your house and how much negotiating power you’ll have, you’ll need to research your local market. Look at recently sold comps to get a good idea of the demand in your area. Begin research at least two months before you plan to list.
- Hiring an agent – A real estate agent can help you prepare your home for sale, pinpoint the right asking price, and line up buyers. Begin working with an agent six weeks before listing.
- Preparing your home – At the same time you hire an agent, you should begin prepping your house by making repairs and investing in home improvements that will boost the home’s value.
- Moving out – Although you don’t have to be moved out before you begin showing your home, it’s a good idea to be. If you can, begin moving out around a month before you list.
- Marketing your property – Start advertising your property online a week before you officially list it on the market to begin generating interest.
- Selling your property – Once listed, it can take anywhere from a few weeks to a few months to sell. The average home stayed on the market for 24 days in 2020. However, keep in mind that closing can take an average of 46 days, which means from the day you list to the day you close can last roughly two months.
All in all, expect to spend between three and four months preparing and selling your home. For more home selling advice, contact us at Randy Lindsay today.