When Should I Sell My House and Rent an Apartment?
Owning a home is beneficial. Everyone is usually preached as to why they should own a home and not rent. However, there are cases where this isn’t the best option. Your gut feeling could tell you that it is time to sell your home and start renting an apartment. Indeed, there are many scenarios where renting is more reasonable as opposed to buying a house. It is vital to weigh all your options before making any choice. Before you start looking for
Louisville home buyers, you should consider a few things.
Benefits of Renting After Selling
Selling your home at some point is the best decision you can make. For some, renting after selling is the perfect way to avoid the tedious process of finding a new place. For some, renting after selling can be the ideal way to avoid the mad rush to find a new location — especially if you’re in a seller’s market with low inventory and fierce buyer competition (1). Here are some reasons to rent after selling your home:
1. Move into Your New Home Faster
Finding a new home can be an extra ask if you are in the seller's market. It takes about 56 days to find and close a home. On the contrary, rental applications take about three days to complete. However, you will first have to find a rental home in the area you are looking to move into, which can take more than three weeks. All in all, it takes a shorter time to find the perfect rental than to find a new home.
2. Waiting for Prices to Drop Before Buying a New Home
If you are in the seller market, you can be hit by an increase in prices due to few homes and high demand. If you sell your home at a great price, you will likely find that homes in the area will also be more expensive than you’d like. Renting before buying your next home can give you time to gauge the market and when prices fall. Patience is vital if you want to find the perfect home. Real estate money is made on the purchase, not the sale.
It is essential to have a strategy for selling your home and how you will transition into your next home. For example, if the seller’s market is favored for a long time, you could have to stay in a rental longer than you’d want to pay, not building equity.
3. Don’t Make an Offer with a Home Sale Contingency
If you find the perfect house to buy before your current house sells, you might feel tempted to include a home sale contingency in your offer on the house you want to buy. Such a contingency states that you will buy the house once you have been able to sell your home. Such a contingency looks good on paper. However, it significantly weakens your offer in the eyes of the seller. Unless you are in the buyers’ market, it will be challenging to secure a new home until you remove the contingency from the offer. We buy houses Louisville KY and will help you quickly get on the buyer’s market.
Avoid a home sale contingency, sell your house and then rent in an interim place so you can seamlessly transition into your new home. Consider the lease term to avoid paying fees or excess rent when planning your purchase timeline.
4. Skip the Cost and Hassle of Some Repairs
People are always quick to look at the drawbacks of renting a home. However, it also has immense advantages. If you are a renter, you will rarely be responsible for repairs and updates to the home. These are usually time-consuming and costly. What your landlord will or will not repair is not up to you. Common repairs include:
*Plumbing: Water leaks, broken faucets, broken toilets,
*Heating/Cooling Systems: Broken radiators or air conditioners, depending on the location
*Pests: Bed bugs, cockroaches, etc.
*Electrical Systems: Broken, faulty, or crossed wires and outlet
5. More Time to Search for your Next Home
The search for a new home isn’t an easy one. Renting after selling buys you more time to find your next home. However, rushing into a new home purchase in a seller’s market can be costly, and you can end up with buyer’s remorse.
Homebuyers Louisville KY can rent in the area for a trial run before deciding to buy there.
Disadvantages of Renting after Selling
There are always two sides to a coin. Here are some drawbacks to consider before renting after selling to
Louisville cash home buyers.
1. Moving Twice
If you rent for a while before moving into your next place, you will have to move twice. In addition, you might have to put some items in storage between the moves, which will require a lot of hard work and money. The average cost of a local move for a 2-3 bedroom home is $1,250, while a long-distance move (over 1,000 miles) is $4,890. So even if you’re moving locally, moving twice could cost about $2,500
2. Rent Could Cost as Much as Your Former Mortgage
In some areas of the country, the rental price of a home will be similar to what you were paying as a mortgage. If that is the case, you should avoid renting or renting out for too long. Alternatively, you can get our fast
cash home buyers Louisville services to help guide you on the best way forward after selling your home.
3. Rental Shortages
When the market favors the seller, there can be rental shortages as many people will also be renting. This will make finding a suitable rental for yourself more challenging than it usually would be. Working with a real estate agent is an excellent way to find an excellent rental unit while still on the market.
Kentucky Cash Homebuyers
Kentucky Cash Homebuyers is a team with all the experience and knowledge needed to help you make safe financial moves when selling your home. We offer you a fast sale by buying for cash. Contact us for more information.
We here at Kentucky Cash Home Buyers are dedicated to getting the most cash possible into your pockets for your home as-is, so that you can get the most out of this situation and prepare to move on. We will buy houses in any condition without you needing to fix your home before sale.