Moving away from the state, what do you plan to do with the house? You can consider renting it, which sounds perfectly reasonable. Or should you sell it and move on? A job transfer or overall change of weather may be just what you need.
This decision process can make you stressed out. We can help you make the best choice.
Consider these 7 reasons below:
If You Rent, Will This Give You Positive Cash Flow?
Renting out your house means profits. However, it is not always the case because there are expenses to consider such as insurance, utilities, vacancy, management, and repairs. If you add the costs and deduct them from the rent amount, will you get substantial profits? If it is a loss or looks like too much trouble for little gains, consider selling.
Cash Return on the Investment
A real estate investment is one of the trendiest ways to invest today. Consider a scenario where you can sell the home for a profit of $70,000 versus making a profit of only $1,000. The sale amount can be reinvested in something else that can pay back more. For instance, investing in a new business venture.
Consider the Taxes?
When you sell the home for profit, the IRS requires you to pay 20% capital gain depending on your tax bracket. You don’t have to pay the tax if the sale of the home is below $250,000. For married couples, the amount is $500,000, of the house which was your primary residence.
How Does the Market Look?
Ask yourself how the property market looks like. Ask yourself, how things will be in five, ten or twenty years. How does the DFW real estate market seem to be trending? Try and spot other markets that seem promising. If there is no hope, consider selling the home.
Mortgage on the Second Property
If you have a mortgage on the old house, it could affect your chances of securing another one. For instance, the Federal Housing Administration (FHA) does not permit borrowers to hold two mortgages. In addition, most lenders require new homeowners to pay 20% of the total value of the mortgage as the deposit. Selling the home could give you the deposit for the second property in a new community.
How to Sell the Home
You have two ways to sell the home; selling through an agent –the slow way. Old houses will require repairers and cosmetic touches before looking market ready. Consider a cash buyer, if you don’t want to struggle with repairing the home.
Selling Your Home, the Fast Way
Straightaway, sell your home fast for cash, with Super Cash for Houses. If you are in Dallas, TX, let’s finish the deal in less than 10 days. Once you contact our representatives, we book a visit to evaluate the home.
Afterward, you receive the highest cash offer possible. If you accept the contract, we pay all the cash straight to your account. We buy all houses as they are, without the need for repairs.