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Moving Up in Life: What to Do with Your Old Home

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Sometimes, your situation in life prompts you to consider moving into another house. Your family may be growing too big, or you feel safer living in a better location. With the massive role that our homes play in our safety and development, it is only right that you live in a home that fits your needs and preferences.

Moving is hardly uncommon. In the United States, an average person can move up to 11 times throughout their life. This is, of course, due to various reasons. But it goes to show that relocating is an option.

Let’s say that you do decide to get a better home that fits your needs. What happens to your old home? What are your options?

What Happens to Your First Home?

If you have already paid off this house, the decision ultimately boils down between keeping it or letting it go. But it’s not as simple as it may sound.

This result of this decision may decide a couple of future outcomes for you and your lifestyle. For this reason, you must make sure to take into account everything before choosing what to do with your old home.

What Happens if You Sell Your First House?

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The endpoint of this decision is that you will have extra cash to spend on your needs. You can even use the earnings to finance your new home. But again, it’s not as easy as it may seem.

For one, you have to find buyers. You cannot sell anything at all if you are unable to find anyone who is interested.

To provoke interest, you have to make sure your house is ready to be sold. This means fixing up major damages that need repair and cleaning out the entire property accordingly. Don’t even think about keeping major repairs a secret.

If your house needs plenty of fixing, it will negatively affect the value of your property. Not only will this make it difficult for you to find good buyers, but it will also lessen the money you will make for this sale.

There is also the question of negotiating with potential buyers. If you have no experience in selling a house, you may need to work with a broker. These brokers typically take 4% to 6% of the earnings as a commission. It is a compromise that you must take if you want your home to be sold faster, at a potentially higher price.

Keep in mind that your house can be a great financial asset. If you sell it, you are letting go of a potentially lucrative source of income in exchange for a finite sum of money.

What Happens if You Keep It?

There are several possibilities to explore if you do decide to keep your first house. For one, you can now have two living quarters that can accommodate more of your needs. With two houses, you have more options for accommodations.

You also have the option of renting or leasing it out to tenants. If you choose this path, you can create an additional stream of income that can expand to other real estate investments.

But before you do this, make sure your property is ready to take in tenants. This means that your property must provide basic housing needs and that it is a safe place to live in. Make sure to repair any damages before deciding to have it leased.

It is also best that you do your due diligence. Make sure you know housing compliance codes and understand the Fair Housing Act before screening tenants. Do not forget to get landlord insurance beforehand.

If you can’t keep up with the day-to-day activities of being a lessor, you can get in touch with property managers to list your house in their property management services.

Having your old place rented out can be a lucrative venture, given that housing will always be a need for everyone at any given time. If you decide to keep your house and turn it into a rental property, your possibilities for expansion are endless.

Ultimately, the decision of keeping your old house or letting it go is decided by your needs. Moving into a new home is great, but you also have to be wise about dealing with your old home. If you need money immediately, then selling your old house would be somewhat wise.

If you want to play the long game and create additional income in the future, then consider having your place rented. Your decisions today will surely make or break your future.

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