You're ready to move, but you're not sure what to do with the house you're in. Sell it now? Keep it and rent it while you buy the next one? Fix a few things first so it sells better? There isn't one right answer. It depends on your timeline, your lender, and how much landlord work you actually want. Here's a plain look at all three, so you can pick a strategy before anyone puts a sign in the yard.
What to keep in mind
- ✓Selling now is the simplest path: no landlord work, and cash in hand.
- ✓Lenders may count documented rental income on a departing residence, usually with a signed lease and other paperwork. Ask your lender.
- ✓Renting the home means landlord insurance, reserves for vacancy and repairs, tenant screening, and who takes the 2 a.m. call.
- ✓Before you list, fix what blocks a buyer or an appraisal, and skip the wish list.
Sell now
Selling now is the simplest path. There is no landlord work, and you have cash in hand.
You can list the home as it sits, or do light prep such as cleaning and small repairs. Light prep is separate from a remodel.
Rent the departing home
You can keep the house and rent it while you buy the next one. Lenders may count documented rental income on a departing residence, usually with a signed lease and other paperwork. Fannie Mae is one common set of guidelines for a departing residence. Your own lender decides what counts. Ask your lender.
Renting the house means you are the landlord. The work includes landlord insurance, reserves for vacancy and repairs, tenant screening, and who takes the 2 a.m. call. Pearsall Properties does not manage rental property.
Update before listing
Fix what blocks a buyer or an appraisal, and skip the wish list.
That work is a safety issue, a system that does not work, or a repair that would stop a buyer or an appraisal. A project you would want for yourself can wait.
How to choose
Four plain questions sort the three paths.
What is your timeline?
Do you need the cash from this house for the next one?
Do you want the work of being a landlord?
What does your lender say?
Seller questions, answered
Can renting my current home help with the next mortgage?
Lenders may count documented rental income on a departing residence, usually with a signed lease and other paperwork. Fannie Mae is one common set of guidelines. Ask your lender.
Should I update the house before I list it?
Fix what blocks a buyer or an appraisal. Skip the wish list.
What does it cost to list with Pearsall Properties?
Commission is agreed up front and paid only if the sale closes.
Is this legal, tax, or lending advice?
Theodore Pearsall is a Licensed Florida Real Estate Sales Associate with Pearsall Properties. This is general information. Check with your lender and a CPA or tax advisor.
Theodore Pearsall, Licensed Florida Real Estate Sales Associate with Pearsall Properties. This is general information. Check with your lender and a CPA or tax advisor.