To Sell or to Rent? The Perks and Pitfalls of Being a Landlord
Analyzing whether to sell or rent your home is a BIG deal…and it deserves careful consideration. Ultimately, the right choice for you depends on your financial situation, goals, and personal preferences. Here is a quick run-down to help you decide:
Renting Out Your Home Might Make Sense If…
- You don’t need the funds from your current home to purchase another home
- You’re moving temporarily and planning to return to the area
- You think your home’s value will drastically increase within the next few years
- The rental market is especially hot in your area
- You have the time and know-how to screen tenants, manage rent/collections, and make home repairs (or would have enough cash flow to pay for third-party management)
- Rental income is part of your long-term investment strategy
Selling Your Home Might Make Sense If…
- You need to use the equity from your current home to purchase another home
- Rent wouldn’t generate enough cash flow to cover things like vacancies, maintenance, repairs, and landlord insurance in addition to the existing mortgage, taxes, and HOA dues
- You don’t want to take on the risks, time commitment, and challenges of being a landlord
- You’re uncomfortable with the landlord-tenant laws in your area
- A home sale would generate a large profit (and has been your primary residence for at least 2 out of the last 5 years so that you’re eligible for capital gains tax exemptions)
- You’re concerned a future recession might negatively impact your finances
Before reaching a conclusion, it’s a good idea to familiarize yourself with the landlord-tenant-law specific to your state (and in some cases, separate relevant ordinances in the city and/or county that your property lies within). You should also do some market research to get a feel for price/condition of similar homes for rent and for sale in your neighborhood.
It probably makes sense to talk with a property management professional to clearly understand what you can expect to net as a landlord. You can also reach out to me any time for an accurate estimate of your home’s value should you decide to sell.
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2023, Windermere Real Estate / Mercer Island.
5 Home Improvements That Will Boost Your Property Value
A home is the largest investment most people will make in their lifetime, so when it comes time to sell, homeowners often wonder what they can do to get the most return on their investment. Many have the misconception that remodeling is the way to go, but that isn’t always the case. Rather than going all-in on upgrading your home, you should know which home improvements are worth it, and which ones aren’t.
We’ve sifted through the research and come up with a quick list of five home improvements that’ll help buyers fall in love with your home when it comes time to sell.
1. Add a little curb appeal
Curb appeal is critical. As the name suggests, it’s the first thing buyers see when pulling up to the front of any home so it needs to be in nearly pristine condition.
Landscaping can go a long way for a minimal upfront investment. Six rounds of fertilizer and weed control will set you back about $415, but when it comes time to sell, you’ll see a return on investment (ROI) of about $900 according to a 2023 survey by the National Association of Realtors.
Other improvements you can easily make to your curb appeal include:
- Pressure wash the exterior
- Liven up your front door with a fresh coat of paint
- Replace hardware such as doorknobs and knockers
- Install updated house numbers
- Make your walkways pop with new greenery or flowers
- Plant a succulent garden
- Update your porch lights
- Add a little charm with window flower boxes
- Stage your porch
2. Convert your HVAC to an electric heat pump
According to the 2023 Cost vs. Value Remodeling Report, replacing an oil or gas furnace with an electric heat pump is one of the hottest trends (and offers an unusually high ROI of 104%). Their earth-friendly efficiency is especially appealing to younger buyers and those concerned about climate change. Additionally, they offer summertime cooling, which is a big bonus in the PNW given our recent hot and smoky summers!
3. Refresh your kitchen
While major kitchen renovations are costly and typically have low ROI, a little elbow grease and modest budget can give you big bang for your buck (see our article on simple kitchen makeover ideas).
Here are some smaller updates to boost your home’s value:
- Clean
- Organize your pantry
- Use a little Murphy Oil Soap and hot water on all of your cabinets
- Polish cabinets with Howard Feed-In-Wax
- Tighten all hinges
- Clean grout and tiles
- Shine your sinks and hardware until you can see your face in it
- Deep clean your stove
- Give your kitchen a fresh coat of neutral paint
- Update lighting fixtures, and replace light bulbs
- Add new and trendy door hardware to your cabinets
- Consider replacing your countertops with a hard surface like quartz or quartzite
- Upgrade your appliances
4. Go green
Today’s younger generations are embracing eco-friendly living, and millennials are leading the pack. According to the National Association of Realtors’ 2022 Home Buyer and Seller Generational Trends Report, millennials make up the largest segment of buyers, holding strong at 43 percent of all buyers.
When it comes to attracting buyers who are willing to pay top dollar, going green makes sense. A Nielson study found that, of more than 30,000 millennials surveyed, 66 percent are willing to shell out more cash for conservation-conscious, sustainable products. Depending on where you live, consider installing solar panels, wind turbines, and eco-friendly water systems.
No matter where you live, attic insulation replacement and weather stripping are safe bets. Attic replacement costs can vary but typically have a good ROI. Weather stripping costs about $350 if you hire a professional, but you can easily DIY for a fraction of that cost.
5. Install hardwood floors
Installing or upgrading hardwood floors is pretty failsafe as most buyers love it. Ninety-nine percent of real estate agents agree that homes with hardwood floors are easier to sell, and 90 percent of agents say that they sell for a higher sale price, according to the National Wood Flooring Association. Similarly, a survey by the National Association of Home Builders (NAHB) found that wood flooring was among the top 10 home features most desired by home buyers.
When it comes time to sell, consider our team to help you get the highest possible ROI for your home. We can connect you with tried-and-true contractors, suggest strategic upgrades, and help you develop the right pricing plan based on up-to-the-minute market analysis. Reach out for a complimentary consultation.
© Copyright 2023, Windermere Real Estate/Mercer Island.
Adapted from an article that originally appeared on the Windermere blog November 12, 2018. Written by: Sarah Stilo with HomeLight.
Cost vs. Value data ©2023 Zonda Media, a Delaware corporation. Complete data from the 2023 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
7 Ways to Make Life Easier When Selling Your Home
When it’s time to sell a home, we all dream of a flawlessly executed transaction where everything goes smoothly and ends with a win-win for you and the buyer. Here are seven tips to help make that happen—and avoid surprise expenses along the way…
1. Repair Your Home First
Making repairs to your home before you sell not only makes it more appealing to buyers, but it can also help you avoid the additional costs that can result from the buyer’s inspection. Disclosing any repairs that still need to be made will help you move smoothly to closing and avoid problems that could otherwise kill the deal. Consider conducting a pre-listing inspection to make sure everything is out in the open before you sell.
2. Make Sure Your Price is Right
The key to selling your home quickly is to find the right buyers. To find the right buyers, your home must be correctly priced. We use a Comparative Market Analysis (CMA)—a thorough, data-backed examination of your home and how it compares to other listings in your area—to accurately price your home. Without an agent’s CMA, it’s easy for your home to be listed at the wrong price.
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- Avoid Overpricing: Overpricing your home will attract the wrong buyers because you will force your home into competition with other listings that are fundamentally superior or have more to offer. When comparing other homes to yours, buyers will focus on the discrepancies and the features your home lacks. Overpricing will often cause homes to sit on the market for extended periods of time and become less appealing to buyers.
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- Avoid Underpricing: Under competitive market conditions, intentionally underpricing a home is a common strategy to attract buyer attention with the goal of starting a bidding war to drive the price of the home up. However, several things must go correctly for this to happen. In all other cases, underpricing your home reflects a lack of knowledge about where its market value fits into the fabric of current local market conditions and can leave you, the seller, unsatisfied with the price your home ultimately fetches.
3. Invest In Staging & Professional Photography
First impressions matter when selling a home. The vast majority of buyers are searching online and taking virtual tours of homes they’re interested in. As such, it’s well worth the time and money to hire a high-quality photographer and we always provide this for our sellers. The right photography can make all the difference in the minds of buyers.
Home staging is also a critical element for getting the most value for a home and selling it quickly. You can even DIY if you have the time and modern decor. It’s also the perfect time to inspect your home for any minor or cosmetic repairs that can be addressed quickly. An aesthetically pleasing home will attract more eyes, and any edge you can give your home over competing listings may be just the ticket to getting it sold.
4. Keep Your Emotions in Check
Selling your home is an act of learning how to let it go. Once you know you’re ready to sell, you’ll need to be able to look at it with an objective eye. This will allow you to approach decisions from a neutral standpoint and work towards what is best for the sale of the home. Having clear judgement will also help you get through the negotiating process and steer yourself toward a smooth closing. Stepping back can be tough, but a good agent will always be happy to give you guidance and help you keep perspective.
5. Wait Until You’re Ready
It may be tempting to rush your listing to take advantage of local market conditions, but waiting until you have all your ducks in a row will make life so much easier. Knowing when to sell your home is a mixture of being financially prepared, having the right agent, and understanding how your home fits into the current local market landscape. Once you’re ready, here are some tips on timing the market.
6. Use an Agent
…and we’re not just saying it because we’re agents! Selling a home “For Sale By Owner” (FSBO) can save on commission fees, but is a complex and risky process that can easily lead to serious costs. An agent will help you front marketing costs, provide sound advice to help you avoid legal trouble, and ultimately shoulder some of the liability for the transaction. Being represented by an experienced professional will help you avoid mistakes during the offer process, negotiations, and closing that could otherwise be costly or jeopardize the sale. It’s no wonder that a vast majority of sellers choose to work with an agent.
7. Be Willing to Negotiate
Approaching buyers’ offers with an open mind will ensure you don’t miss any opportunities. Before the offers start to come in, it’s important to work with your agent to understand your expectations and strategize which terms and contingencies you’re willing to negotiate on. That way, you can quickly identify the right offer when it comes along. Showing a willingness to work with buyers will also keep them engaged and make sure you don’t leave potential deals on the table.
© Copyright 2023 Windermere Mercer Island.
Adapted from articles that originally appeared on the Windermere blog, November 22, 2021 & April 7, 2021, by Sandy Dodge.