Moving out of your old home and starting anew elsewhere is a whole new adventure for you. However, you may find yourself in a dilemma: whether to put your former abode alongside other homes for sale in Lake Texoma or to rent it out.
Here are five questions to ask yourself in your decision-making.
How much are the houses for rent in your area?
Search for houses for rent in your neighborhood that are similar to yours in size. This will give you an idea of how much your house could be rented. You could also ask your real estate agent to help you estimate a rental price range for your home.
Factors that affect rental prices include job growth and unemployment rates in your area, so it is best to be up-to-date on these indicators.
What is the current local market status?
If you live around the Lake Texoma area, ask your local agent for the real estate market climate in areas such as Madill OK, Durant, or Kingston. Realtor.com figures for September 2020 reveal that buyer demand in these three communities is higher than the housing inventory, thus making them seller’s markets.
Putting your home up for sale at this time can get you more buyer attention and juicier offers to choose from. However, should you decide to put your home up for rent, finding potential tenants will be easier.
For how much did you buy your home, and what is its current value?
Your real estate agent can help you identify your home’s current market value by providing you with a comparative market analysis (CMA). You can also search for comparable listings in your location to see the listing prices of similar properties.
How much did you pay for your house? If its current market value is less than the price you paid, then it might not be the best time to sell. But, if the current value is higher, then selling it can assure you of an attractive return on your investment.
Have you thought about becoming a landlord or hiring a property manager?
If you want to put your house up for rent, remember that as a landlord, you’ll have to invest both time and money. You must also be aware of the relevant laws and regulations in your state and your obligations as a landlord.
You could hire a property manager to oversee the upkeep of the property. But if you are only leasing a single-family home located not far from you, then it may be more cost-effective to handle the property management yourself.
How about a rent-to-own scheme?
Another option to consider is a rent-to-own agreement. The tenant can place a down payment on the house and make rental payments for a certain period. A portion of the rental payments goes to the final price of the home when the tenant chooses to purchase it after the rental period.
This scheme might be for you if the local housing market is not looking too good at the moment, and you don’t want to commit to a long-term rental. It can also be an advantage for the tenant since they can opt to purchase the house they are renting when they can finally afford to get a mortgage.
To help you decide whether it is better to sell your Lake Texoma home or to rent it out, get in touch with our expert team of real estate agents at Servant’s Heart Realty (formerly Lake Texoma Real Estate Company). Call us at 580.246.0010 or send an email to realtor(at)russ-parker(dotted)com to learn more.