You're Always At Home With Refind Realty.
Buying your first or next home should be a rewarding and exciting time in your life, and one that you look back on with fond memories.
The market has changed a lot and I'd love to show you the exact strategy I use to get sellers in DFW top dollar for their property.
Let me walk you through the entire pre-approval process so you know exactly how much home you can afford.
My emails are a great way to stay up-to-date with local news and real estate market trends, even if you're not currently in the market. So, come on and join me to stay in the loop!
affordability Calculator
Get pre-approved to know exactly how much house you can afford. Use this calculator to get a quick estimate. Contact me for assistance!
Discover the latest new home constructions in DFW and take advantage of the builder incentives that are available now.
Refind Realty Blog:
When the time comes to move, homeowners face a significant crossroads in life. One of the biggest questions looms: Should I sell my house or rent it out? As more people navigate this decision, understanding the nuances of both options is crucial. Recent data indicates that nearly two-thirds (66%) of sellers have at least pondered the idea of renting, with a notable rise from previous years.
In this article, we’ll guide you through the key considerations that will help you make an informed decision, tailored perfectly to your financial and lifestyle goals.
Moving to a new home is often an exciting adventure, but what to do with your current residence can make the journey a bit more complex. Choosing to sell or rent your house involves weighing various factors such as financial benefits, responsibilities, and the potential for long-term wealth.
Before diving deeper, let’s look at why this trend towards considering renting over selling is growing:
Market fluctuations: The real estate market can be unpredictable, leading homeowners to consider holding onto their properties for potential future appreciation.
Passive income opportunities: Renting can provide an additional income stream, which is especially appealing in uncertain economic times.
Changing lifestyles: More people are being flexible with work arrangements, leading to increased mobility.
Now that we’ve established the trend, let's explore some essential factors to assess before making your decision about renting or selling.
The first question to ask is whether your house is a good fit for becoming a rental property. Here are some things to consider:
Neighborhood Demand: Is your area popular among renters? Research local rental markets to see if there’s a demand.
Accessibility: Are there transport links, schools, and amenities nearby?
Repairs Needed: Does your home need significant repairs before it can be rented out? Some tenants might be put off by properties that aren’t move-in ready.
Safety Compliance: Make sure your home meets local safety regulations, including smoke detectors and security measures.
If you find yourself facing red flags in any of these areas, selling might be your best bet rather than renting out a property that could struggle to attract tenants.
Being a landlord can sound appealing, but it’s not all sunshine and rainbows. Here’s what to think about:
Availability: Are you prepared to handle maintenance requests or emergencies? Landlords often receive calls at all hours.
Management Tasks: From screening tenants to managing leases, being a landlord requires organization and commitment.
Unexpected Repairs: Things can break! Are you ready for the possibility of covering costly repairs, sometimes overnight?
Tenant Issues: Consider the risks of tenants defaulting on payments or needing to break a lease unexpectedly.
It’s essential to be honest with yourself about whether you’re ready to take on these responsibilities.
If you're leaning toward renting for passive income, it's important to be aware of the costs involved. Let’s break down some key expenses to consider:
Mortgage and Property Taxes: Even if your rent doesn’t cover these costs, you’ll need to stay on top of them.
Insurance: Landlord insurance generally costs about 25% more than standard home insurance.
Maintenance and Repairs: Prepare to allocate at least 1% of your property’s value annually for upkeep.
Finding Tenants: Advertising and screening tenants can incur additional costs.
Potential Vacancies: Be prepared for the possibility of empty months between renters where you’ll still need to pay the mortgage.
Management Fees: If you opt for a property manager, this typically comes with a fee of around 10% of the rental income.
While renting can appear attractive, selling comes with its own set of advantages that warrant consideration:
Selling your house can provide a significant financial boost. Whether you plan to buy a new place outright or put that cash towards a down payment, the immediate influx of money can make a difference.
When you sell, you say goodbye to homeowner responsibilities, such as repairs, property taxes, and dealing with tenants. It’s about reclaiming your time and energy for other pursuits.
In a seller’s market, where housing prices are high, selling can maximize your return on investment. If you can command a premium price, it might be time to take that leap.
Having cash in hand allows for greater flexibility regarding future investments or personal opportunities. You can diversify your financial portfolio rather than being tied to a single property.
While selling offers immediate gratification, let's not forget the compelling reasons to consider renting:
Renting out your house can provide ongoing income. Over time, this income can help build your wealth, especially if property values rise in your area.
The rental payments can cover your mortgage, allowing you to maintain ownership of the property without the associated financial burden. This can be especially helpful if you plan to return to the area later.
As a landlord, you may be eligible for various tax deductions, including maintenance costs, property taxes, and even depreciation. Understanding these benefits can enhance your overall financial situation.
If you haven’t found your dream home yet, keeping your current property allows you to take your time finding the right place without the pressure of being homeless.
After considering all these factors, it’s time to weigh your options. Here’s a simple breakdown to help:
How long do I plan to move away? If it’s short-term, renting may be ideal.
What’s happening in the housing market? Keep an eye on real estate trends in your area.
Do I want the additional responsibilities of being a landlord? If not, selling might be the best move.
In the end, the choice between selling and renting your home is deeply personal. Both paths offer unique advantages and drawbacks, which means you need to align your decision with your financial goals and lifestyle. Therefore, consider consulting with a real estate professional who can provide insights tailored to your situation. Ultimately, you want to choose the option that feels right for you!
Start by assessing your current home situation, financial goals, and personal circumstances. Consider creating a pros and cons list for both options.
Research local rental rates, vacancy rates, and average tenant demographics. Websites like Zillow or local real estate reports can offer useful insights.
Evaluate the cost of repairs against potential rental income. If repairs are extensive, selling might be more practical.
While it’s possible, managing a property remotely can be challenging. Consider hiring a property management company if you’re moving far away.
You may deduct expenses related to property management, maintenance, insurance, and property taxes, as well as potentially benefit from depreciation.
6 Smart Ways to Build Home Equity
7 Insider Secrets To Selling Your Home w/o a Lot of Time or Money
DFW Home Seller Negotiation Secrets
Home Appraisals Guide
Avoiding Pitfalls That Can Derail Your Home's Sale
Ultimate Guide To Buying a Home
A First Time Homebuyers Guide In DFW
Are You Ready To Buy?
25 Insider Secrets To Buying A Home
How to Improve Your Credit
Download All My Guides For Free
50+ 5 Star Reviews
Over $60,000,000 in Total Real Estate Sales
167 Properties Sold
Unlock insights into potential selling prices.
Get a personalized analysis sent directly to your inbox.
Stay ahead with updates on property value fluctuations.
Benchmark your property against neighborhood listings.
I used this realtor and it was a great experience. He was patient and very helpful with our journey. He also helped us find a great lender with little hassle on the process, also got us approved for well above the market of our original home so we were able to get more house with a lower mortgage rate. So to anyone who is interested in buying a home take my advice give Steven a call. It’s worth it 😁
Steve was absolutely amazing! Everything was easy! Very professional in all aspects. Punctual, responsive, and diligent. He goes above and beyond to ensure you get to see as many homes as you’d like no matter the location. Not only was he knowledgeable about home buying, he also has a resourceful network for new home owner needs. I recommend Refind Realty to everyone!
I definitely recommend Steven to assist with your home buying needs. As a first time home buyer the process can be overwhelming, but as my realtor he was knowledgeable & patient while addressing my concerns and assisting me with my new home purchase. Thanks again Steven!! :-)
When buying or selling a home, there are so many options…which can also present a lot of obstacles. Laws change, forms change, and practices change all the time in the real estate industry. Because it’s our job to stay on top of those things, hiring a realtor reduces risk, and can also save you a lot of money in the long run.
When you work with me as your Realtor, you’re getting an expert who knows the area; knows how to skillfully guide your experience as a seller or buyer; can easily spot the difference between a good deal and a great deal. My job is to translate your dream into a real estate reality, and I work hard to earn and keep my business. This also means earning your trust: When you work with me, you’ll be working with a realtor who looks out for your best interests and is invested in your goals.
There are two different types of loans conventional loans and government-backed loans. The main difference is who insures these loans:
1 - Government-backed loans (FHA, VA and USDA):
(a) - Are, unsurprisingly, backed by the government.
(b) - Include FHA loans, VA loans, and USDA loans.
(c) - Make up less than 40 percent of the home loans generated in the U.S. each year.
2 - Conventional loans
(a) - Are not backed by the government.
(b) - Include conforming and non-conforming loans (such as jumbo loans).
(c) - Make up more than 60 percent of the loans generated in the U.S. each year.
1 - FHA LOANS:
FHA loans, which are insured by the Federal Housing Administration, are typically designed to meet the needs of first-time homebuyers with low or moderate incomes. FHA loans can be approved with a down payment of as little as 3.5 percent and a credit score as low as 580.
FHA loans are often called “helper loans,” because they give a leg up to potential borrowers who may not be able to secure one otherwise. For this reason, FHA loans have maximum lending limits, which are determined based on housing values for the county where the for-sale home is located.
Because the agency is taking on more risk by insuring FHA loans, the borrower is expected to pay mortgage insurance both at the time of closing and on a monthly basis, and the property must be owner-occupied.
2 - VA LOANS:
VA loans are backed by the Department of Veterans Affairs and they are guaranteed to qualified veterans and active-duty personnel and their spouses. VA loans can be approved with 100 percent financing, meaning VA borrowers are not required to make a down payment.
Unlike FHA loans, borrowers do not have to pay mortgage insurance on VA loans.
3 - USDA LOANS:
You may also hear about USDA loans, which are backed by the United States Department of Agriculture mortgage program. USDA loans are intended to support homeowners who purchase homes in rural and some suburban areas. USDA loans do not require a down payment and may offer lower interest rates; borrowers may have to pay a small mortgage insurance premium in order to offset the lender’s risk.
Buyers who have a more established credit history and a larger down payment may prefer to apply for a conventional loan. These loans may offer a lower interest rate and only require the home buyer to purchase monthly mortgage insurance while the loan-to-value ratio is above a certain percentage, so a conventional loan borrower can typically save money in the long run.
Conventional loans are divided into two types: Conforming loans and non-conforming loans.
1 - CONFORMING LOANS:
Conforming loans are those that meet (or conform to) predetermined standards set by Fannie Mae and Freddie Mac — two government-sponsored institutions that buy and sell mortgages on the secondary market. By selling the loans to "Fannie and Freddie," lenders can free up their capital and return to issue more mortgages than if they had to personally back every loan that they approve.
The main standard for conforming loans is that the amount borrowed must be under a certain amount; in Alaska, a single-family home loan must be under $647,200 in order to be considered conforming.
Properties with more than one unit have higher limits.
2 - NON-CONFORMING (JUMBO) LOANS:
But what happens if a borrower wants to borrow more than the Freddie- and Fannie-approved loan amount? In this case, they would have to apply for a “jumbo loan,” which is the most common type of non-conforming loan.
Because the lender cannot resell the jumbo loan (or any non-conforming loan) to Freddie Mac or Fannie Mae, jumbo loans are considered to be riskier than a conforming loan. To protect against this risk, the bank will typically require a higher down payment; the interest rate on a jumbo loan may also be higher than if the same borrower applied for a conforming loan.
Rate types: Fixed-rate vs. adjustable-rate mortgages.
In addition to the loan type you choose, you’ll also have to determine if you want a fixed-rate mortgage or an adjustable-rate mortgage (ARM). A fixed-rate mortgage has an interest rate that does not change for the life of the loan, so it provides predictable monthly payments of principal and interest.
An adjustable-rate mortgage typically offers an initial introductory period with a low-interest rate. Once this period is over, the interest rate adjusts periodically, based on the market index. The initial interest rate on an ARM can sometimes be locked in for different periods, such as one, three, five, seven, or 10 years. Once the introductory period is over, the interest rate typically readjusts annually.
Office 1229 E. Pleasant Run Ste 224, DeSoto TX 75115
Call :(713) 505-2280
Email: [email protected]
Site: www.stevenjthomas.com
Facebook
Instagram
X
LinkedIn
Youtube
TikTok