by KatieM | Feb 23, 2023 | For Sellers
If you are moving out of your home or own a property in which you don’t reside (for example, an inherited property), you have two options: You can sell the house or rent it. To decide between selling a house or renting it, be sure to weigh the pros and cons of both.
Pros of Selling a House
- Finding tenants or filling vacancies won’t be a concern.
- If it’s a seller’s market, you could make a substantial profit by selling a house.
- There will be no need for long-term management and maintenance of the property.
- You will receive a large amount of money quickly, which is helpful if you plan to buy another home.
- You won’t have to worry about making repairs or dealing with tenant complaints.
Cons of Selling a House
- Selling means there will be no opportunity for long-term profits from your property.
- There are a lot of costs associated with selling a house, including marketing, staging, repairs, and code-compliant renovations.
- Trying to sell a house can be stressful and may not always happen right away.
- You may not be able to get the price you want for your property in a buyer’s market.
Pros of Renting a House
- Monthly rent payments can generate dependable, long-term income.
- Rental income profits can keep increasing if your property is in an area where the rental market is strong and growing.
- You can deduct expenses associated with renting the property: insurance, maintenance, repairs, taxes, etc.
- Your property is likely to increase in value, which can result in profits if you decide to sell it later.
Cons of Renting a House
- If you’re uncomfortable dealing with tenant complaints or disputes, this will be an additional challenge in rental management.
- Long-term vacancies and lost income can occur if you can’t find tenants.
- Making repairs and keeping the property in good condition is an ongoing responsibility.
- Upgrades and renovations may be needed to attract tenants.
- You or your property manager will be responsible for finding and vetting tenants as well as collecting and managing rent.
Ultimately, it comes down to what works best for your individual situation.
Selling your house is a good option if you want to make a quick profit and don’t want to deal with managing a rental property. But if long-term, steady rental income is appealing, renting your house might be the right choice.
For more real estate advice, contact us at Randy Lindsay today.
by KatieM | Jan 26, 2023 | For Sellers
Code violations refer to incidences of breaking local building codes and zoning regulations. If a home has been built without the necessary permits, or if it is not compliant with local building codes, it may have code violations. If your home has code violations, you’ll want to consider the possible consequences before selling a house without addressing them.
Can You Sell a House With Code Violations?
If selling a house with code violations, it is important to determine the extent of the violation(s) and any potential liabilities. Depending on the type of violation, the seller may be liable for any repairs that need to be made.
Even if the buyer is willing to purchase a house with code violations, their mortgage lender may forbid it. For example, FHA (Federal Housing Administration) loans don’t allow borrowers to purchase properties with outdated electrical panels. And some local and state authorities require sellers to fix certain safety issues before the property can be legally transferred.
Here are a few tips for dealing with code violations:
- Identify and document the code violations: Before attempting to sell a house with code violations, it’s important to know the extent of the violations and potential liabilities.
- Get an estimate for repairs or necessary fixes: Determine how much it will cost to bring your house up to code so you can accurately assess any potential liabilities.
- Consider selling the home in “as-is” condition: If you do not want to incur the cost of bringing your house up to code (and aren’t legally required to), you can consider selling it in its current condition by listing it as-is. Doing so puts the responsibility for repairs in the hands of the buyer. You will be legally obligated to disclose all known code violations and potential liabilities.
- Address all code violations before selling: Although you could list your home as-is, doing so will likely hurt the sales price, and you may not be able to find a buyer willing to take on the responsibility of repairs. If possible, it’s best to address all code violations before attempting to sell the home.
When it comes down to it, you can sell your house despite code violations. However, doing so can scare away many buyers and reduce your potential sale price. Contact us at Randy Lindsay today for more tips on selling a house.
by KatieM | Dec 22, 2022 | For Sellers
Selling your home can come with all sorts of challenges. One of these challenges is finding a place to live before you close and move out.
It’s not uncommon for sellers to find themselves in a situation where they have a buyer lined up but nowhere to go, whether it’s because their new house hasn’t been completed or they simply haven’t yet found a new place to buy. If this is the case for you, one potential solution is to sign a rent-back agreement with your buyer.
What Is a Rent-Back Agreement?
A rent-back agreement is an arrangement in which the seller agrees to continue renting the property from the buyer for a set period of time. This can be a good option for sellers who need extra time to find a new place to live if the buyer doesn’t have to move in right away. It’s worth noting that this is generally a short-term agreement.
The Pros and Cons of a Rent-Back Agreement
Arguably the biggest benefit to a rent-back agreement is that it will give you time to find a new place to live. The last thing you want to do is to be forced into moving, putting everything in storage, and having to rent an apartment if that’s not what the plan was. On top of that, you’ll also deal with much less stress since you won’t have to worry about finding new living arrangements on top of everything else that comes with selling a house.
However, there are a couple of drawbacks. First, the buyer needs to agree. This means the buyer needs to be in a situation where they don’t have to move in right away. Such a buyer can be hard to find. Secondly, it puts you at a disadvantage as far as negotiations are concerned. You may have to accept a lower offer if the buyer knows you need something.
Consider Signing a Rent-Back Agreement
If you’re in a situation in which you need to sell your house but don’t have anywhere to go yet, you may want to consider finding a buyer willing to sign a rent-back agreement. Be sure to contact us at Randy Lindsay today for more advice on selling your home.
by KatieM | Nov 17, 2022 | For Sellers
If you decide to sell your house, you’ll want to do everything you can to maximize your profits. However, to get as much as you can out of your house, you’ll have to do a little more on top of simply listing it and hoping you find a buyer willing to give you what you’re asking.
With that in mind, the following are four tips on selling your home for more money:
1. Price your house correctly
The most important factor in getting top dollar for your home is pricing it correctly from the start. One of the biggest mistakes sellers make is pricing their homes too high, thinking they’ll be able to come down later if nobody bites. However, overpricing your house can scare potential buyers away. And the longer your home sits on the market, the more difficult it will become to sell.
2. Make necessary repairs and updates
If any major repairs or updates need to be made to your home, it’s best to do them before putting your house on the market. Not only will this make your home more appealing to potential buyers, but it will also increase its value. If you’re unsure what repairs or updates need to be made, a home inspector can give you a detailed report.
3. ‘Time’ the real estate market
If you put your house up for sale during a buyer’s market, it will likely take longer to sell because there will be fewer buyers, and you’ll probably have to lower your asking price. However, if you list during a seller’s market, you’ll likely have more buyers interested in your home and you might get away with a higher asking price. Competition may even result in a bidding war. Pay attention to your area’s market conditions to help determine the best time to list your home.
4. List your property at the right time
Besides timing the market, try to list your market during the peak season, either in the spring or summer. This is when more buyers are looking for homes than at any other time of year, so you’ll have a better chance of selling quickly and for top dollar.
These are four tips you should keep in mind to help ensure you get the most money possible from selling your home. Contact us at Randy Lindsay today for more tips on selling your home.
by KatieM | Aug 11, 2022 | For Sellers
Selling your home is challenging! And if your home is on the smaller side, homebuyers might think twice about whether it will address all their needs. Even if it does, if your home feels small and cramped, it won’t attract a lot of buyers.
There are ways you can make your small home feel bigger and make it more attractive to potential buyers. Try these tips on how to make a small house feel bigger:
1. Use light colors when painting your walls
Light colors make a room feel more open and airier, which can give the illusion of more space. In contrast, dark colors often make a space feel smaller and more cramped than it is. If you don’t want to paint the entire home, paint an accent wall in a light color to make a statement and open up the space.
2. Let in natural light
Natural light is one of the best ways to make a small room feel bigger. If your home doesn’t have a lot of windows, consider installing skylights or solar tubes to brighten things. You can also use mirrors to reflect light and make the space feel more open.
3. Keep the clutter to a minimum
One of the quickest ways to make a small space feel cramped is to have too much stuff. Go through your belongings and get rid of anything that you don’t need or use. This will not only create space, but it will also make your home feel less cluttered.
4. Use multipurpose furniture
Furniture that serves more than one purpose is ideal for small homes. For example, ottomans with storage can be used as a coffee table or extra seating, while a Murphy bed can be folded up into the wall when not in use. Look for furniture that is both functional and stylish to make the most of your space.
5. Hang curtains high
Hanging curtains closer to the ceiling will make your windows look taller and your ceilings appear higher. This simple trick can give the illusion of more space and make your small home feel bigger.
Making your small home feel bigger doesn’t have to be difficult. By using these tips, you can create the illusion of more space. If you’re selling your home, making your small house feel bigger can attract more interested buyers. For advice on selling a house, contact us at Randy Lindsay today.
by KatieM | Jun 24, 2022 | For Sellers
If you’ve recently bought a new house, then you can sell it anytime you want. It’s your house, after all! However, that doesn’t mean you should. Although extenuating circumstances might force you to sell your house soon after buying it, there are several reasons why you should consider waiting a few years if possible.
Why Should I Wait Before I Sell My House?
Real estate tends to be a very stable investment and will typically appreciate over the long term. If you sell quickly after you’ve bought (say, within the year), then odds are you won’t make much of a profit; if any. In fact, it’s more likely you’ll lose money when you take into account all of the costs associated with buying and selling a house as well as moving to and from a new location.
For instance, in addition to the down payment and mortgage payments you’ve already made, you’ve also spent money on moving costs, property taxes, mortgage insurance, and more.
Secondly, even if your house does jump in value significantly, if you sell your house within a year of having bought it, your capital gains will be taxed like regular income. You need to wait at least a year for your capital gains to be taxed as long-term gains and not short-term gains (which will save you money).
How Long Should I Wait Before I Sell My House?
At the very least, you should wait a year to avoid a higher capital gains tax rate. However, considering all the costs associated with buying a house, most homeowners won’t break even when they sell unless they wait at least two years.
For more advice on buying and selling homes, be sure to contact us at Randy Lindsay today.