Deciding whether or not to sell your house is a significant decision that requires careful consideration and examination of various factors. It is not a decision to be taken lightly, as it involves a substantial financial investment and can have long-term implications for your living situation.
Before making a decision, it is essential to evaluate your current circumstances, the real estate market, your financial goals, and your future plans. In this comprehensive guide, we will explore the key points to consider when deciding whether it is the right time to sell your house.
1. Evaluate Your Current Living Situation:
Start by considering your current living situation and whether it meets your needs and desires. Are you satisfied with your current home? Does it offer the necessary space, amenities, and comfort? What are the potential drawbacks or limitations of your current home?
Take into account factors such as the size of your family, changes in lifestyle, commute to work, accessibility to facilities, and the overall condition of your property. Assessing your satisfaction with your current living situation will help you determine if selling your house is the right decision.
2. Assess the Real Estate Market:
The real estate market is a significant consideration when contemplating selling your house. Understanding the market’s condition and trends will help you determine the potential demand and value of your property.
Research local housing prices, trends, and market forecasts. Consider factors such as supply and demand, interest rates, local economic conditions, and housing inventory levels. Evaluate recent comparable home sales in your neighborhood to get an idea of the potential value of your property.
Additionally, consult with local real estate professionals, such as real estate agents or appraisers, who can provide valuable insights into the market conditions and help you determine an appropriate listing price for your house.
3. Identify Your Financial Goals and Objectives:
Your financial goals and objectives play a crucial role in the decision-making process. Selling your house can have a significant impact on your finances, so it is essential to consider both short-term and long-term implications.
Evaluate your current mortgage and outstanding debt. Consider if selling your house will help you achieve financial goals such as reducing debt, freeing up cash for other investments, or downsizing to a more affordable property.
Take into account factors such as the potential profit from the sale, possible costs associated with selling your home (e.g., real estate agent commissions, closing costs), and any tax implications. Analyze various scenarios and financial projections to understand the potential financial impact of selling your house.
4. Anticipate Future Plans and Lifestyle Changes:
It is important to consider your future plans and any potential lifestyle changes that may influence your decision to sell your home. Are you planning to relocate to a different city or state? Do you anticipate significant changes in your family or personal life that may require a different living space?
Evaluate your long-term goals and how your housing needs may change over time. Consider factors such as job prospects, educational opportunities, family considerations, and retirement plans.
If you anticipate the need for a different type of housing or lifestyle in the near future, selling your house might be a viable option to support those plans and ensure you are better positioned for your evolving needs.
5. Assess the Costs and Effort of Home Maintenance:
Owning a house comes with ongoing costs and responsibilities. Consider the current and anticipated costs of maintaining your home. Evaluate factors such as regular maintenance, repair expenses, and potential renovations or upgrades needed.
Assess how these costs and efforts align with your resources, time availability, and the desire to manage a property. Sometimes, the decision to sell a house is driven by the desire to reduce the financial and time commitment associated with homeownership.
6. Explore Alternative Options:
Before making a final decision to sell your house, explore alternative options that may help you achieve your goals without selling your home. For example, if you need additional funds, you might consider refinancing your mortgage or exploring loan options.
Alternatively, if you need extra living space, you could investigate the feasibility of adding an extension or converting existing spaces within your home. Exploring alternative options can provide additional clarity and inform your decision-making process.
7. Consult with Professionals:
Throughout the decision-making process, it is essential to seek professional advice from various experts. Consult with a real estate agent who specializes in your local market, a financial advisor who can help evaluate the financial implications, and potentially a lawyer or tax professional who can assist in addressing legal and tax concerns.
These professionals can provide objective insights, analyze your specific situation, and help guide you in making an informed decision based on your needs and goals.
In conclusion, selling your house is a significant decision with important implications for your present and future. It is crucial to evaluate your current living situation, analyze the real estate market, assess your financial goals, consider future plans, evaluate the costs of homeownership, explore alternative options, and seek professional advice.
By carefully considering these factors and gathering relevant information and insights, you will be better equipped to make an informed decision that aligns with your needs and aspirations.
“Local Man Paid on Sales Commission Encourages Sale”
idk can you get a second opinion on this?
Rent it to another military member. There is money to be made in owning houses.
Sounds like you already made your decision. It’s the right one. A lot can change during deployment.
Don’t sell it! The realtor sees dollar signs and you’re losing out on future equity with a low interest rate. You don’t replace all 3 until they actually fail lessening the impact. If your rent at market rate and make 200-300 over your mortgage that’s about 3k extra per year. And if it is listed as an investment property you will definitely depreciate the property and deduct what ever you had to replace. So yeah the realtor is trying to screw you.
OP does not explain why he is moving.
One can argue whether it was a smart decision to buy the house in 2021.
It may be in OP interest to sell the house with minimal profit or worse break even if his plans do not involve maintenance on the home.
I don’t think it’d be a bad idea to keep it and rent it. There’s money in it in the long term if you rent it out. One of my NCOs bought a house at every base he was stationed at and rented it when he left. After 20 years in he had 5-6 rental houses across several different states and was bringing home almost as much (if not more) money as his E7 with BAH pay was. And that was after the cut the renting company he used took.
you’ll never see that low of an interest rate again. Imo, you only lose money if you sell it now. Are you in a position to buy another house when you get ot your perm location?
then do some math. get rental rates for the area and calculate how long it will take to see the profit, i’ll bet it far quicker than your realtor told you. realtors only job is to SELL houses. they have no incentive for you to rent that property
and remember those appliances dont expire, you dont have to replace them on the exact date. Same with a roof, it’s ok to wait for stuff to break before you fix it
My own personal bias / trauma says do not sell, at least not in this market. I sold my house at the end of spring and am still bitter that I lost my 3% rate and bought at 5.9%.
I agree with the suggestion about Home Depot. This is how I remodeled my kitchen. They did 24 months no interest on a promotion with my HD card AND used the same local company I had been looking at. I even paid several thousand dollars less going through HD than what I was originally quoted from the vendor directly.
Your HVAC IS 18 years old, does it really need replaced? That seems like the very low end for just about any HVAC.
Also, just be aware that those item might not change the price of you house, but any buyer is going to see the 10s of thousands of needed repairs and ask for you to lower the price or pitch in some cash before closing. Unless you can get a no contingency offer.
That mortgage is the cheapest money you’ll see in the rest of your lifetime. Keep the house. Make the repairs (or at least the most critical ones) and rent it out. Don’t think about it in terms of ROI on the repairs. Think about it in terms of what the house is going to be worth in 15 or 20 years. Renting it will pay off the mortgage and you’ll have an asset worth hundreds of thousands of dollars.
Contact a property management company or two, and see what they say. You may be able to rent out for more than your mortgage, allowing you to build equity. You can find companies that accept a flat fee instead of a percentage.
If you sell now, you won’t see much profit as the realtor and closing fees will take a huge chunk.
It depends.
What’s the market value of the house? Is it an area you would consider moving to after the military? What’s the amount it would rent for vs mortgage payment?
Need some more information before we give advice, don’t listen to realtors they do not have your best interests in mind.
not even 20 years and the roof already needs to be replaced
Remember that VA loans are assumable, so you might be able to sell your house at a premium to what it’s worth since the mortgage rate will be less. If you do decide to sell, make sure your realtor understands assumable loans. That being said, rates will probably never be <3% for a long time.
Roof, HVAC, water heater due? Nothing is due unless it breaks. I don’t get people replacing good working things becouse someone told them it’s due. If it leaks replace it, if it stops heating fix or replace it, if it does what it’s meant to do then keep doesing
Why do you believe the roof and HVAC are “due”? Roofs are rated at 30 years. You’re only 17 years into that roof. HVAC systems can last decades. What makes you believe it’s not functional?
If these items are in immediate need of replacement, any home inspection will find them out, and the buyer will want them replaced or a credit.
Definitely Rent it out
You can always replace Roof, HVAC etc….
As they begin to break….
If you sell…..
Inspection for your future owner of the house will want everything replaced before they purchase your home
There is no way that putting on a new roof on a house when it is due will not increase the value of a house. If you sold the house with a bad roof, the buyers would demand that you replace the roof before they took possession.
The same works for the other items that are due.
Here is the real question. Are you okay managing the house from another place or have someone you trust to do it?
Do not sell, the realtor just wants a sale, they are never going to think of your best interest.
Your sale is the way they pay their own mortgage, don’t give up that interest rate.
Let me get this straight. You have a house that needs a lot of work. You’re planning on running it out. And you’re going to be in The military. You don’t exactly seem like a stable landlord. If you’re not going to fix things now. Then you’re probably going to be one of those landlords who fixes nothing. Sell the house to a someone who will enjoy it. And can raise a family in it. Don’t become a bottom feeding slumlord.
Military in a military town-if you’re not planning on being stationed there again or retiring, sell that ish and don’t look back. You do not wanna be playing landlord if you’re half a world away and 7 time zones away.
My house was built in 2002, and while yes, I did have to braze a refrigeration leak in the evaporative coil and get a tech to recharge the system, everything else is still working fine. I wouldn’t recommend just replacing items just because they’ve reached the end of their “expected” lifetime. Delaying those expenses even a few years can mean massive savings over a lifetime.
Same with my windows, some of seals have gone on them so their sound and heat insulating factors are gone, but they ain’t broken otherwise. Technically I should have my roof redone, but I just go up on the roof with a bucket of tar and patch spots, replace missing shingles. Repair roof penetrations that have started to crack. One gallon of tar, some shingles, and I’ve put off replacing the roof for years too and no leaks. Only recommend this route if you’re going to regular check for leaks.
Water heater I just keep draining every year, and while I’m sure a ton of scale has built up and its original capacity is reduced because of it, everything else works fine. I would probably replace it with a heat pump hot water heater if it was electric though as the actual utility savings would be worth it, but it’s gas so no rush.
Nothing is “due” until it breaks or costs more effort to maintain or patch up than it is to replace. Sone things are better off doing now than when they break but there are so many posts lately which are like “a salesman told me my house needs 45k worth of work”. All houses could get 45k worth of work. I’m not sold on the idea that everything that might be a present problem is a present problem that “needs” to be addressed asap.
It’s a balancing act or you will constantly be pouring every last dollar into your house.
Sounds like a great opportunity for passive income and building wealth to me.
Hey dude here is what you need to do
1. Get an estimate on the things that need to be repaired (typically I get three or so estimates to ensure I’m not getting robbed) honestly it’s surprising all three things need to get replaced
2. Go to rentometer.com plug-in your details (bed mix etc) and see what it would rent for
3. Calculate rent – piti (principal interest taxes and insurance) throw in a good (rent *.2 ) for capex and opex
4. If the juice is worth the squeeze you need to proceed with the repairs and find a good property manager
There’s a lot of Dave Ramsey haters on here – but he would tell you to sell it in a heartbeat. His rationale is “would you seek out a rental in a town 2 states away (or however far you’re going to be when you move)? The answer most likely is no. So why would you keep a rental two states away? Do you actually want to deal with the late night phone call because the HVAC went out? Do you want to fork over $$$ on a house you don’t even live in anymore? Sell it, take the equity, and put it down on your next house. Interest might be higher – but your principal will be lower than if you didn’t have the extra down payment. Make a clean break – and enjoy your next home!
You’re nearly correct, replacing HVAC, roof, etc, is necessary maintenance and doesn’t really increase value. Of course not replacing them and selling the house with units at the end of life decreases value.
Realtors say Sell because that’s how they make money. Ask them to estimate the asking price. 2.5% mortgage is a great deal. Look at the numbers. What if you rent it, with a property manager? When those expenses come up, can you cover them. Appliances and roofs don’t have an expiration date.
I had this exact situation in 2022. House was up about 25% (100k). I knew I had a great rate (2.75%) but didn’t want to be an out of state/country landlord so decided to take the money and run. It’s all in bonds/CDs now earning 5%+ so no regrets here.
Your appliances are a red herring don’t worry about them. No such thing as “due”
I’d try to get a good contractor to negotiate a free roof from your insurance company. I’ve never paid for a roof. But, I live in Nebraska so hail is not unusual… I’m not advocating fraud, to be clear, but roof damage is pretty common and you just as well use the coverage you pay for.
I would hold on. Repair as needed. Rent the place out. In a few years houses will be more expensive, specially if interest rates come down
Due? Get an inspector to check them out. The realtor wants to make money off of you and nothing else.
I would take a HELOC out, (you probably have some equity if you bought in 2021) pay for repairs you believe are absolutely necessary, and rent it out if that is an option.
2.5% fixed interest is nice.
That, or allow buyer to assume your 2.5% mortgage and demand a premium for it.