The property market isn't great, but you do have options. You can either rent out your house to a tenant or sell your home privately or through an estate agent for fair market value. Subject to the availability of sufficient equity, you may even prefer to sell it to a property cash buyer to achieve a quick sale. Whether you should sell or rent out your home depends heavily upon your personal circumstances and the state of the property or rental market in your local area.
Rent Out Your House When Underwater With Negative Equity
You may want to sell your house, but don't want to be left with a deficiency. Provided that the lender is agreeable, you could arrange a short sale but this will result in a lower credit score. Rather than affecting your credit worthiness, consider renting out your home until house prices start to recover. You could then move to a more affordable home or live with family until property prices are high enough to enable you to sell. In the interim, the rental income can be used to pay your mortgage.
Why Rent Out Your House When You Have Sufficient Equity?
You've fallen on hard times because you've lost your job, there's been a freeze on over-time or your health has deteriorated. You have enough equity to sell your property and walk away with a net capital gain, but you don't really want to do this. Rather than selling, you could rent out your house until your personal circumstances change for the better. Let's face it, it isn't a great time to sell. This would mean that you can then leave on your own terms when circumstances are more favorable.
When to Sell Your Home on the Open Market
You've got sufficient equity and want to move to new area because of family or career commitments. You don't intend to return. The children may have left or your partner has passed away so your home is too big and expensive for you. You may be planning a family and want to upgrade to a larger home. Although house prices are lower, so are the properties you're looking to purchase. You already have enough money to cover your down payment on a new house so, provided you can sell your house, you can move on with your life.
How to Sell Your House Quickly
If your house has been on the market for quite a while, you could rent out your house, but there is a further option you may wish to explore. You won't get full market value, but you'll achieve a quick house sale for about 80% of its worth. A sell and rent back scheme involves selling your house to a property cash buyer. The positives are that there won't be any estate agency fees and you won't need to pay the normal legal costs. The entire process can normally be achieved in just 24 hours.
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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