As a real estate investor, at some point, you have to decide whether to sell your property or continue ownership of it. Determining when to sell can be tricky, but it might be necessary if there is a chance that the property could become more of a liability than an asset. If you are unsure if now is the time to sell, here is what you need to know.
What Are Your Financial Goals?
Before you can evaluate whether or not it is time to sell your property, you need to look at your financial goals. Your goals play a major role in deciding if you can afford to hold onto a property for a little while longer or if you need to get out now.
For instance, if you want to use the income from the home to pay for your child's college education, selling the home might make sense. If you sell it now, you might be able to pay his or her entire tuition without having to take out loans.
However, if your financial goal is to have passive income as you move towards retirement, selling it might not be the best option. By keeping the home, you are ensuring that you have additional income to help meet the costs associated with aging, such as health care.
Is the Property Ready to Sell?
Take the time to assess the property before making your final decision. The property's current condition, the neighborhood, and the housing market all factor into whether or not you should sell.
For instance, if the home is in a neighborhood that is on the decline, selling now means you could be saving money. However, if the home is in a neighborhood that is growing in popularity, you could either sell now while the market is hot or hold onto it a bit longer and try to earn even more.
You also have to look at the condition of the home. If the home is in need of major repairs and you do not have the budget for it, selling it "as-is" is an option. By contrast, if the home only has minor issues, repairing and renting it out could be the right decision for you.
If you are still on the fence about keeping or selling your home, talk to a realtor like those found at RE/MAX INTEGRITY. The realtor can help you evaluate the property and the market so that you can make an informed decision about the future of your investment.