It’s no secret that we are in a seller’s market which has left many homeowners wondering what their next steps should be. From choosing to stay in their home, selling, upgrading, renting, the options seem endless and for many, the idea of selling for a high profit and renting temporarily seems to be growing in popularity. While each situation is unique, there are a few common reasons that many homeowners are opting for the idea of selling and then renting.
Easily the biggest reason to sell is if you have a high amount of equity in your home. For example, if you currently owe $200,000 on your home, and the market value shows that you could sell for $400,000, then you could be gaining an astounding $200,000 from the sale. While in many cases the sellers would use these funds as a down payment on a new home, homeowners who are choosing to sell and become renters are using the proceeds for things such as:
- Paying off debt
- Creating Investment accounts
- Taking time off to travel
- Building emergency funds
- Setting Up College funds
- Creating Trusts
- Purchasing new vehicles
It’s no secret that when you’re a homeowner, you have a lot of responsibilities. From day-to-day maintenance, maintaining a yard and landscape, upkeeping and repairing roofing, appliances, plumbing, electrical etc. the list of chores easily adds up. While many homeowners take immense pride in maintaining their home, the idea of a break from the constant upkeep can be quite appealing, which can make renting look like a great option.
While there is no way to know for sure what the real estate market will do, whether it will continue to grow or if we see a crash in sales and declining home prices, many homeowners are simply playing the, let’s wait and see game. By selling while the market seems to be at a peak, many are hopeful that by renting temporarily, they will be able to invest their sale proceeds into a new home once the housing market starts to decline and homes become more affordable.
If you’re currently searching for a new home, are ready to sell your home and need a qualified seller’s agent, or if you have any questions regarding New York Real Estate, please feel free to contact our office at any time.