The housing market is at an all time low and selling a home seems impossible. Foreclosures have reached record numbers and there does not seem to be an end in sight. There are various reasons that people decide to sell a home but when the market is doing so poorly it is important to consider all viable options. The decision, should I sell or rent my house, can be an agonizing decision but armed with the proper information a smart decision can be made.
Some people are unable to keep up with the loan payments so you may consider selling your home in a recession to prevent it from going into foreclosure. However if you have been occupying the home for several years and you want to stay, it may be a good idea to refinance. Refinance rates are at an all time low so it’s a good time to consider it if you have not already done it. Homeowners should beware of the fact that refinancing restarts the interest on your loan all over and for some people it may substantially lengthen their loan term. So for some it may be beneficial but for a person who has only a few years left on the life of their loan that probably wouldn’t be the best option and they may want to consider renting.
If there is no possibility of refinancing and a payment plan can not be worked out with the lender, renting out your home may be an option. Renting your home would allow the house to continue being paid for and possibly bring in a little extra income depending on the arrangement. If you are close to paying your home off you might want to consider letting someone move in temporarily and renting your home until you get back on your feet or until the house is paid for. Then you have the option of moving back into the house or selling the home and moving somewhere else. However remember that trying to sell a home during a recession can backfire and you may end up losing money. If you think that property values may go up, it may be a good idea to wait until you see some economic growth before selling a home. But on the other hand if they are continuing to sink into a bottomless pit, selling your home might be best choice.
This period right now is a buyers market so selling a home is very difficult. So renting your home might be the cheapest and most viable option. However it is important to realize what you are accepting when renting your home. Being a landlord is a lot of responsibility. You must pay for any repairs or necessary upgrades that must be done. Keep in mind that this takes away from any profit you might make and you may even suffer some out of pocket expenses. Also nobody takes care of your belongings as well as you do. Be mindful of that because some renters do leave places in shambles. Extensive background checks and the ground rules should be laid out first. Get a professional to help you draw out a contract. If you are not ready to continue to maintain the property even if it’s at your own expense you should consider other options.