Contrary to what many experts, news media or analysts may have you believe, market conditions are not as bad as they are portrayed. In some areas inventory is down, prices are up and the general consensus is a positive one, moving up in a positive outlook for the future. But the question does arise when one is moving from a home – whether selling it now or renting it to hold out for a better selling price makes more sense. Here we’ve put together some considerations that will help you discern which is the better choice for you.
Real Estate Is Always a Gamble, Now’s Not Any Different
There is no real way to tell exactly how the market will behave at any given time in the future but currently all trends reasonably point to both options being equally as viable. If you opt to keep your home and rent it out, say for the next couple years or so, then there is a chance that prices will hit rock bottom and then begin to climb up again during that period. However, there is also a chance that prices continue to plunge – in which case you would have been better off selling while a bit ahead of the game.
The main thing to keep in mind here is that even though things go up and down in the short term, real estate is a great long term investment and it’s fair to say that ultimately there will be a gain on your property value.
Buyers’ Market Today, Who Knows What Happens Tomorrow
So many indications of it being a strong buyers’ market these days make it seem that the opportunities on the buying end of things are endless. However anything can change and it can change fairly quickly. Take our current interest rates. Though buyers have been used to seeing such historically low interest rates for some time now, if the government decides to raise the rates it will instantaneously change things. Since buyer’s ability to purchase will be affected in a major way, prices will concurrently come down.
Heavy Foreclosure Inventory Appears to Dominate The Coming Path
Nationwide there are literally millions of foreclosure properties out there that need to go through the system. As foreclosure and short sales flood the market, prices will plummet as a result of these distress sales. In some markets this trend has crept into the upper-end niche of the real estate industry.
Why Renting Can Be Risky
If a homeowner rents out their property and while it is on rent the condition of the property suffers some damage – then they have negatively impacted the value of the home during a time when they had hoped for an increase in value. This is the single biggest gamble when it comes to choosing to rent your home rather than selling it.
Also, there is no way to tell what the condition of the selling market may be when it comes time for you to decide to sell.
Consult With Your Realtor To Assess Your Options
Realtors deal with myriad situations on a regular basis and they also intimately know the statistics of your neighborhood and surrounding areas. By consulting with a trusted and reputable Realtor in your neighborhood, you can gain ample perspective on exactly how your property might fare in today’s market conditions. An informed decision would be made, given the factors at hand so you can be assured that your choice is the best as per your own situation.
Team Randy Thomas is here to help!