Which is Better: Selling or Renting My Massachusetts Home?
Author Bill Gassett owns Maximum Real Estate Exposure
When it comes to real estate, most decisions you make are pretty significant. For the most part, they require significant thought without rushing to judgment.
One such decision that many homeowners make is whether to rent or sell a house. For some, there is no clear-cut choice one way or another. For others, whether to sell or rent is fairly straightforward.
We will examine some of the essential considerations on whether to rent out or sell your house.
What Factors Will Affect Whether to Sell or Rent My House?
Let's look at some of the things you should be thinking about before committing to selling or renting your Massachusetts home.
Are You Committed to Being a Landlord?
One of the primary considerations when deciding whether to sell or rent a house is the amount of time and effort you are willing to commit to the process.
If you are looking for a quick turnaround and are not interested in the long-term commitment of renting a house, then selling is likely the better option for you.
On the other hand, if you want a passive income stream and are comfortable with the long-term commitment of renting, then it might be the better choice.
Remember though that when you rent your house, you'll become a landlord and all the responsibilities that come with it. If getting a phone call in the middle of the night about a plumbing leak doesn't sound appealing, it might make sense to figure in the cost of a property manager.
What Are The Local Real Estate Market Conditions?
Another consideration is the current market conditions. If the local real estate market is strong and market values are rising, then selling may be a good option. However, if the market is weak and prices are falling, then renting may be the better option.
It will be essential to study the market and see where things are now and where they are projected to head over the next few years.
Over the long term, it is unusual for real estate values to fall. If you don't mind holding onto the house, you might make a bigger profit with a long-term horizon.
How Are Your Current Finances and Do You Need The Money For Other Housing?
Finally, your current financial situation should also be taken into account. If you can make more money by selling the house or you need to exit the property quickly due to financial distress, then selling may be the best option.
On the other hand, if you can make more money by renting out the house and you have the financial capacity to do so, then renting may be the better option.
Expenses to Consider When You Opt to Rent Your Massachusetts Home
When it comes to renting out your Massachusetts home, there are many costs to consider. Most of these costs are ongoing and should be factored into your decision to rent or sell your property.
First, you will need to keep up with your mortgage payments. This is a fixed cost that will need to be covered in order for you to remain in good standing with your lender.
Second, you will need to pay property taxes. Real Estate taxes can vary from year to year but will need to be taken into consideration when making the decision to rent or sell.
Third, you will need to maintain insurance on your property. This is an important cost that will need to be covered in order to protect your asset.
Fourth, you will need to factor in the costs of routine maintenance and repairs. These can range from small fixes to major repairs. It is essential to be aware of the costs associated with keeping your property in good condition.
Finally, you may need to consider the costs of hiring a real estate agent to handle the rental process. The fees generally range from a half month to a full month's rent.
Before deciding to rent or sell it is vital to think through all the expenses.
What Are The Cost of Selling a Massachusetts Home?
When selling a home in Massachusetts there are several costs to consider. The most significant expense is the real estate commission which is typically split between your listing agent and the buyer's agent.
The Realtor's commission is typically five to six percent of the sale price. The other significant fees for selling a home in Massachusetts include legal representation and Massachusetts Tax Stamps.
You can expect to pay somewhere between 800-1200 dollars for a real estate attorney to negotiate the purchase and sale agreement and attend the closing on the house.
The tax stamps in most of Massachusetts are 4.56 dollars per thousand.
Final Thoughts on Selling or Renting My Home
The costs associated with renting or selling warrant careful consideration before making a final decision. It's a significant decision that will have life-altering consequences.
Hopefully, what we have mentioned will give you some food for thought.
Did you enjoy this advice on what to know about renting or selling my house in Massachusetts? See other real estate articles on NewsBreak for more timely tips and advice. Bill often writes about general real estate, mortgages, finance, moving, and home improvement.
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