When buying a new construction home, you also have to make the decision of when to sell the house you currently own, or if you even want to sell it at all. Below are a few questions you can ask yourself to help with the decision process.
“Should I rent my home instead of selling?”
If it’s currently a “sellers market” in your area where more people want to buy than want to sell, it may be a good time to sell your home for a profit. However, you may find it more profitable to rent your home and sell it at a later date when prices are higher. Being a landlord is a time investment, so do your research before making this decision. Talk to a realtor about what you could realistically rent your home for. If you are going to break even on your mortgage (or end up still paying for some of it), it may not be worth your time to rent the house out.
“Is it worth my investment to make home improvements first?”
It may be worth your time and money to do some minor upgrades or even some major renovations to your home. Realtors agree that the highest return on investment comes from upgrades in kitchens and bathrooms. An appraiser, home inspector or realtor can give you an idea of which renovations should be done. The length of the renovation will affect when you can put your home on the market.
“What are the current interest rates?”
If interest rates are low, the number of potential buyers will be high. However, if interest rates are currently high, you might consider waiting to put your home on the market.
After answering these three questions, you can make a better decision about when to put your home on the market.
Click here to view this blog as a PDF.