It’s not a secret that the real estate market is hot all across the country right now. There’s a high demand for homes and other residential properties—yet the supply is low. The result? Homes are selling for significantly more than most homeowners initially paid for them.
If you’re thinking about selling your home to pocket the earnings or move to a new place in this seller’s market, there are a few questions to ask yourself before you proceed.
Where is Your Home Located?
Start by considering the location of your home; while it’s true that property values have increased across the country as a whole, there are some areas where values have stayed stagnant or even decreased. This is most common in rural areas or other areas where people may be skeptical to buy (such as areas of high crime).
If you live in an in-demand area, it’s safe to assume that the value of your home has risen since you purchased it. However, this may also mean that it will be harder to find an affordable home to move to if you want to stay in the same area.
What Are Your Property Taxes Like?
Property taxes can vary greatly from one county to the next, so you’ll want to take this into consideration when deciding whether to sell or not. If you live in an area with high property taxes, you may be able to sell and move to an area with lower property taxes as a means of reducing your monthly payment. On the other hand, if you live somewhere that enjoys relatively low property taxes, your monthly payment may not go as far in another county with higher taxes, so this is something to keep in mind.
Rent it Out or Sell?
Another thing to think about is whether it would make more sense to sell your home or possibly even rent it out instead. Selling your home will result in more money into your own pocket up-front (along with no responsibility to become a landlord). However, renting out a home can be a great way to generate lasting monthly income while retaining ownership. Can’t decide whether to rent or sell? Consider exploring what current rentals are going for in your area to help you make an informed choice.
The Bottom Line
There’s a lot to think about when you’re wanting to sell your home in today’s market, but these questions can guide you. And of course, if you need funding for a real estate venture, Hard Money Lenders Arizona is here to help. From fix-and-flip loans and rehab loans to new construction loans and everything in between, we’ve got you covered.