Is It A Good Time To Sell My Rental?<< Back to Recent News
As the sale market continues to heat up and talk of looming rate increases grows louder, St. Louis landlords may begin questioning whether it’s a smart time to sell their rental.
Deciding when and if to sell a home is a complex decision for any owner to make, and it becomes more complicated when that home is occupied by a quality tenant. If you’ve noticed “For Sale” signs popping up along your street (and “Sold” signs that quickly follow!), you’ve likely found yourself entertaining questions like:
What would my home earn on today’s market?
If I don’t sell it now, will I regret it later?
How can I effectively time the sale of my home with the end of my tenant’s lease?
If this sounds like you, take the following into consideration and, of course, get in contact with an experienced professional. Upper End Properties is a full-service agency, meaning our team of licensed agents have experience in both the sale and leasing markets. We’ve helped countless owners make a smooth transition from lease to sale, and would love the opportunity to do the same for you and your rental property.
So you’re thinking about selling your rental? Here’s why 2017 is a great time to do so:
- An Influx Of Hopeful Buyers
- While previously sidelined due to factors like student debt, experts predict that 2017 may finally be the year that first-time millennial buyers enter the real estate market. If your property fits the characteristics of a starter home, chances are there’s a first-time buyer who would love to snatch it up.
- Rates are historically low, but they won’t stay this way forever. Many buyers-both young and old-are shopping for new homes because Fed rates have yet to rise. While we can’t predict when they’ll go up, an eventual rate increase will certainty impact the demand for housing.
- A Shortage of Inventory Is Driving Prices
- You’ve heard that 2016’s market has been plagued by bidding wars, and how they’re bad news for hopeful buyers. Well, they aren’t so bad when you’re on the receiving end of a higher-than-expected offer. Consider listing your property now while competition is high.
- Home Prices Are Rising To Pre-Recession Levels
- If it’s been years since you’ve tried selling, 2016’s shortage of inventory (among other factors) may mean you can fetch significantly more for your property than you may expect. According to RealtyTrac Data, home prices are the highest they’ve been since 2007 (the year the market went south). Letting an agent run updated comps on your property can, at the very least, give you an accurate idea of your home’s appreciation. You may be surprised at the current value!
But Wait! Before You Rush To Any Decisions…
Sure, 2017 may seem like the opportune time to sell, but have you taken the time to consider these additional factors?
- Home Improvements– While your property may be working great a rental unit, the normal wear and tear of housing tenants has likely impacted your home’s value. Scuffed floor boards, chipped paint and worn carpet are unavoidable, and the reality of the situation is that your house will require cosmetic fixes (at the very least) in order to maximize its market value. If you don’t quite feel ready to evaluate, coordinate and pay for said work, it may be the wrong time to sell.
- Your Neighborhood– While markets across the country are generally hot, your specific neighborhood may be faring better or worse than others. Again, consult with a trusted real estate professional and find out how long comparable units are staying on the market, what they’re selling for, etc.. If prices in your area are forecast to rise, holding on to your property for another year will likely mean more cash in your pocket at closing. On the other hand, if your neighborhood’s value is predicted to depreciate, selling sooner rather than later is in your best interest.
- Alternative Investments– If adding rental property to your investment portfolio is strictly a financial move, take the time to re-visit your options. Markets fluctuate, and what once provided you the best ROI may now be found elsewhere. Selling your rental property can give you the freedom to explore other-potentially more profitable-areas of investment.
- Consider This: With low rates and eager buyers, it may be the time to swap your current rental unit in favor of a more lucrative investment property. Thanks to low rates, a newer, larger, or more updated unit may be within your financial reach- meaning less maintenance and higher rents!
The truth is that this is just a short glimpse at factors that an owner must seriously consider before choosing to sell his or her rental unit. We’re hoping these topics have, at the very least, brought new considerations to your attention, and may ultimately encourage you to reach out to an Upper End agent for guidance.
Email us today (or fill out the form to your right) to request your complimentary market analysis!