Ask Phyllis: a blog series of frequently asked real estate questions. Email us here
Dear Phyllis,
I look forward to reading your weekly real estate Q&A, and after years of enjoyment, I have a real estate related question for you. My employer is moving out of state and I will be following them to our new headquarters. I need help deciding whether to sell or rent my home. It was only purchased a few years ago and I am not sure how much equity I have. My neighbor wants me to rent to their daughter and her husband. I need some help deciding – should I sell or rent my home?
-Moving
Dear Moving,
Does your company have a relocation department? If so, contact that department because they may offer special perks pertaining to your move. If your firm does not offer relocation assistance, contact a local real estate agent.
Real estate values have jumped in the last few years. I believe you will be pleasantly surprised to learn the value of your home in today’s market. A local Realtor® can advise you as to how much you can anticipate the selling price to be. You can then determine how much equity you have. It’s certainly a great time to be selling a home as most homes are selling quickly and often over asking price.
This same Realtor® can also advise as to how much you can expect to rent your home. After you pay your mortgage, property taxes and homeowner’s insurance will you have a positive cash flow or a negative outlay each month? And how will this impact your finances?
If you think you may be unhappy with your move, it might be prudent to lease your home for a year, just in case you decide to return. Know that being an out of state landlord is difficult, and you will need a property manager or a very trusted friend or family member to oversee repairs and maintenance.
After you have the facts and you decide whether to rent or lease your home contact your CPA. Explore tax consequences for both scenarios. Best of luck on your move, and thanks for being a loyal reader.
-Phyllis Harb
