Should I rent or sell my house is a question many homeowners find themselves asking often…
To sell, or not to sell: that is the question:
Whether tis better in the bank to profit
From equity in one outrageous lump sum,
Or to rent it and make a gradual fortune.
Sorry. We were feeling a little Shakespearean today.
Let me translate:
If you’re planning to move out of your home soon, you might be wondering: should I rent or sell my house? Selling could net you a lot of cash right now, but renting could profit more in the long time.
So, to rent or sell my house?
Both options have their merits and limitations. So let’s take a closer look to find out which one is best for you.
Probably the most important consideration is how quickly you are looking to profit.
If you sell your your house now, you’re likely to earn back the difference between what you owe and what your home is worth (also known as your equity). For example, if you still owe $300,000 on your house but you can sell it for $350,000, you stand to make about a $50,000 profit on a sale.
Wondering how much your home is worth? Try our home valuation tool.
If you’re going to need that equity to put a down payment on your next house—or make another big purchase or investment—than you are probably better off selling than renting.
If you decide to rent, you are likely to make more money over time, but it’s going to take a lot longer. Let’s take the same example from above and imagine that your monthly mortgage payment is $1,600.
If you can rent your house for $2,000 per month (the rough average in Denver for a 3 bedroom house), then you are making $400 profit per month. It will take you about 10 years to earn the same amount as you would if you sold your home right now.
So, if you are willing to play the long game, renting might be the right choice for you. But if you need the money sooner, you’re better off selling.
Another important thing to consider is how much work you want to put in.
Selling is obviously a lot of work because you have to prepare the house and find a buyer. But the right real estate agent can make the job a lot easier. And once the deal is sealed, you’re done with it.
Renting on the other hand, is going to be regular work for as long as you want the profit. Not only will you need to find new tenants every time someone moves out, but you’ll also still have to maintain the property, appliances, and lawn. While you could outsource these tasks to a property management company, that will cut significantly into your profits.
So if you are willing to put in the effort, renting could be worth it in the end, especially if you plan to invest in multiple rental properties over the years. If you aren’t looking for a second job, thouhg, selling is likely to be the better choice for you
So to rent or to sell my house? The choice is yours. We are happy to run numbers for you in both scenarios at no cost or commitment. If you decide that selling might be the best decision at this point in your life, we hope you’ll choose Walden Novak as your seller’s agent.
We’ve been helping Denver homeowners just like you sell for years.