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The Pros and Cons of Renting Versus Selling

hoouse on scale- renjith krishnan- freedigitalphotos.netFall has arrived in Raleigh! Most Triangle homeowners welcome the cooler temperatures, but they sometimes bring a more relaxed real estate market. For this reason, some sellers contemplate renting their home, especially in popular neighborhoods, instead of selling. However, there are several important considerations to carefully weigh prior to making such an important decision.

For those home sellers who think they might be ready to become landlords, check out the pros and cons first, shared by the top real estate agents at Flat Fee Realty:

  • Every market is different: In general, home inventory is lower in autumn relative to the number of buyers out there, and rental demand is high due to the continuous growth of the Raleigh However, the real estate market is hyper local, and varies from one neighborhood to the next. To get a clear picture of the optimal sales price or rental rate, it’s important to consult with our Flat Fee team, each agent has the important information sellers need here in the Triangle.
  • Assessing financial goals: Home values have been on the rise for some time, so selling will probably free up some cash for many homeowners who decide to sell. Conversely, allowing a tenant to pay down the mortgage while the home continues to appreciate (and hopefully generating some cash flow in the process) can be very appealing. Risk tolerance and the ability to carry two mortgages will play a large part in the decision.
  • Taking the plunge: Not everyone is cut out to deal with tenants, and that’s okay. Hiring a professional property manager can alleviate a lot of the stress and time demands of being a landlord, but it comes at a price (think 10% of gross monthly rent). However, it will not get you out of the financial commitments. Having a decent amount of cash in reserve to finance major and minor repairs is non-negotiable.

For home sellers, the fall season and upcoming holidays aren’t always cause for celebration. It can mean access to fewer buyers, more time on the market, and a potentially (although not always) lower sales price. Like everything, becoming a landlord has both pros and cons. For home sellers who see real estate investment as a portion of their long-term financial strategy, it can be a great move. For everyone else, selling is probably the way to go.

Want to find out if selling your home is the best move? Flat Fee Realty can help! Contact us today to get financially solid, market-based advice on buying and selling.

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This post on selling and buying a home in the Triangle is brought to you by the team at Flat Fee Realty and is intended for informational purposes only.

The Future of Real Estate! 

Flat Fee Realty 

919 342 5230 

Contact Us 

Terry@FlatFeeNC.com 

Photo: renjith krishnan, Freedigitalphotos.net

4 Points Triangle Buyers Must Ponder About Buying a Home As-Is!

house with hammer- fantasista- freedigitalphotos.netIn today’s Triangle marketplace, due to changes in the Standard Offer to Purchase and Contract, many homes across the region are listed for sale in as-is condition. In this situation, the home seller is not required to make any repairs, and it is the buyer’s job to determine whether to proceed with the purchase. However, purchasing a home in as-is condition is something that many buyers (especially first-timers) misunderstand.

To help buyers separate fact from fiction, the agents at Flat Fee Realty offer these four very important points for consideration:

  • Listing a home “as-is” benefits the seller: By listing a home in as-is condition, the seller is expressing an unwillingness to make repairs. Maybe the owner can’t afford it, or maybe it is the challenge of the back and forth of repair negotiations. Whatever the reason, the seller is released of responsibility (and in most cases, liability) for the condition of the home.
  • Determine risk tolerance: Buyers of as-is homes are often attracted to the comparatively low price as compared to a home in perfect condition. Buying any home is costly, and contains some element of risk, but buyers need to be sure that they understand the risks and are able and willing to make necessary repairs (sometimes immediately).
  • Use the due diligence period wisely: Today, when purchasing a home, what people see is what they get. Buyers will generally receive a property with no guarantee that is free from problems. The importance of using the due diligence period to obtain professional inspections cannot be overstated. However, even the most experience inspectors will not uncover every single problem.
  • Have a plan for repairs: If buyers have neither the cash nor the skills to make almost any type of repair, they may want to avoid an as-is home, and seek a property where repairs by the seller can be negotiated. If a buyer has carefully analyzed the seller’s disclosures and inspection reports, researched repair costs, and determined the home is a fit; it creates a solid plan for repairs (placing a priority on anything unsafe, and a lower priority on cosmetic issues).

Working with an experienced local real estate agents like the professionals at Flat Fee Realty provides home buyers with unbiased, valuable information regarding the risks and benefits of all properties they might consider. By carefully taking into account financial concerns, and risk tolerance, buyers can determine whether the deal offered by seller with an as-is property is worth a closer look

Real estate transactions can be fraught with minefields for both buyers and sellers. Need help navigating the process? Flat Fee Realty can help! Contact us today to get straightforward, to-the-point information on buying or selling.

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This post on selling and buying a home in the Triangle is brought to you by the team at Flat Fee Realty and is intended for informational purposes only.

The Future of Real Estate! 

Flat Fee Realty 

919 342 5230 

Contact Us 

Terry@FlatFeeNC.com 

Photo: fantasista, Freedigitalphotos.net