Your Extra Minnesota Home – Should You Sell Your Home or Rent It?
A surprising number of homeowners find themselves owning a second home, often not by design. Perhaps they’ve had difficulties selling a home after moving to a new home, due to difficult market conditions, or current prices for homes mean taking a serious loss by selling it. Often, they’ve inherited a home when parents have passed on. Occasionally, the second home is a vacation home or lake home that just isn’t being used any longer. Deciding what to do with an unneeded second home can be a tough decision. Should you sell the home in the current market, become a landlord and rent it out, or rent it out until market conditions improve? Our REMAX agents and Realtors often discuss such situations with clients, and provide information that helps them make the best decisions for their particular situations. Here are some of the factors that come into play with each choice:
- Sell the Extra Home – This option is attractive to many owners who find themselves dealing with a home they’re not using. In the case of inheritance or longtime ownership, the home may be completely paid off. Selling it can provide a sizable sum that can be used for other purposes or distributed among the heirs. Still, preparing such a home for sale at the best possible price may take a lot of work, especially if it’s not located near your primary residence. If the home has an existing mortgage loan, selling it can end that obligation and may result in a cash balance, and the end of monthly payments. If the home’s mortgage balance is higher than the value of the home, a short sale may help remove that liability. If a sale may make sense after considering all of the factors involved, an MN MLS listing agent from our REMAX team can evaluate the home in a free, no-obligation market value analysis and help you decide. If you decide to sell, we’re the #1 Real Estate Team in Minnesota, and can help you market that home as an MLS listing to sell it quickly and at the best possible price.
- Rent the Home and Become a Landlord – This option has many advantages. Owning real estate means owning property that can add to your long-term wealth. If the property is free of mortgages, the rental income will produce a positive cash flow for you. If there is a mortgage, rental income may cover the mortgage payments or even more. Today, rental rates are up, and demand for home rentals here in the Twin Cities is up too. On the down side, if the home needs rehabilitating before it can be rented, which is not an uncommon situation, the costs of that rehabilitation must be considered in your decision. Being a landlord also comes with responsibilities, although professional property management can help, but at a fee. If being a landlord has no appeal for you, and you’d rather not go to the expense of expensive rehabilitation costs, selling the home "as-is" to a real estate investor who will do the rehabilitation and rent the home as part of a portfolio of rental properties may be a solution. At our REMAX Realty team, you can learn more about real estate investing by attending one of our free introductory seminars for investors, where you’ll get answers to many of your questions about keeping and renting the home. If you decide to sell, our REMAX agents will be glad to market your extra home for you. Today, there are many real estate investors seeking homes to add to their investment portfolios, and we can market your home directly to them.
- Rent It Until the Housing Market Improves – In a sense, this is a similar choice to renting out your home as a landlord, with many of the advantages and disadvantages described above. The goal, however, is different. Planning for a sale when the value of your home reaches a more desirable level lets you anticipate your future plans, while generating cash flow in the meantime. Coming to one of our Investment Property 101 seminars will help you understand more about this possibility, and you can get the answers to many of your questions. If you make this choice, The Minnesota Real Estate Team will always be available to evaluate the current value of your home at any time, and to help you market it for sale whenever you’re ready.
Minnesota’s Complete Real Estate Services for Minneapolis St. Paul
Our 75+ experienced REMAX Realtors and agents include specialists in almost every area of real estate. Whatever your needs may be, there’s an expert on our team who specializes in that area, and who will be glad to help you. That flexibility and expertise is one of the reasons we’ve earned our ranking as the #1 Real Estate Team in Minnesota. Contact us soon to discuss any real estate issue, or for a free, no obligation market value evaluation of property you own. We help clients buy and sell all types of real estate listings, including short sales, REO, and traditional sales, and we as agents are members of Northstar MLS MN.