Home Selling: Should You Move Up, but Keep Your Old Home?
by Dan Wolf
on Monday, August 3rd, 2015 at 8:05am.
With the hot rental market, some people wonder whether they should sell or keep their old home when buying a step-up house in upscale Anchorage, Alaska. An article by huffingtonpost.com points out some people skip the home selling process even though they are becoming move-up buyers. It’s no longer a matter of trading up to a nicer, more expensive home. In some cases, your old Anchorage home could make a lucrative rental property with very little home improvements. Huffingtonpost.com reports most real estate investors don’t flip their properties for profit. Instead, 65 percent keep the homes as rental properties. Before making a final decision, talk to a Realtor who specializes in Anchorage, Alaska housing and real estate trends. Depending what kind of home you own, home selling is often a more financially advantageous decision.
Gauge the rents in your neighborhood
The first step is to figure out the market rent in your neighborhood. Knowing the market rent is just as important as knowing the average listing price of homes for sale. Your rental income could easily offset the cost of a new mortgage on a more expensive home. With interest rates still low, it’s a good time to move up to a nicer home. At the same time, find out if the style and size of your Anchorage home would even appeal to renters versus buyers.
Talk to a lender about carrying two mortgages
If you own your current home outright, getting a mortgage on your new home is fairly easy as long as you have income. However, if you still owe money on your mortgage, a lender will likely expect you to provide some documentation that you intend to either sell or rent your existing home. A loan officer will run the numbers to find out if you qualify for two mortgages.
Consider the pros and cons
Although you can hire a property manager to oversee your property, some people like the idea of serving as a landlord. Even if you rent out your home for a year or two, you can decide to sell. If a tenant destroys your home, it could be costly to get it back in rent ready condition much less in the condition to sell for top dollar. If you have already invested a lot of money into your existing home, it could be smarter to sell instead of taking a risk on renters.
At Wolf Real Estate, we dedicate ourselves to people interested in home selling and buying in Anchorage, Alaska. For more tips on how to decide whether to sell your existing home or turn it into a rental property, please contact us at 248-9653 or visit us online at www.anchoragehomesearch.com.