prices or if home prices have been depressed but are slowly rebounding, it may be better to rent out your home than sell now. It makes sense to keep a house as an investment if it shows future growth in worth, provided you have the wherewithal to maintain its value with conscientious renters and appropriate upkeep. In a general down market, it could also make sense to hang onto the home and realize rental income until the market recovers. A MAIN REASON TO SELL — NOW The local situation is a big factor. Is the home in an area of economic stability and rising house prices or in a steadily decaying area? That the home is in an increasingly unstable neighborhood is economically a reason to sell quickly. Should the value of the entire area have vastly decreased, it is hard to know when it will stop, or if it will stop at all. Consulting with a real estate agent who has experience and knowledge about dropping neighborhood value will help you in figuring out what to do. If the agent believes that the value is not going to go up anytime soon, it is best to sell your vacant home as soon as you can. Using a real estate agent to sell your vacant home will make the process go more smoothly, especially if you need to sell it within a short period of time. ISSUES IN DECIDING TO RENT YOUR VACANT HOME There are issues that will determine whether you can, or should, rent your home rather than selling it. Renting costs. Consider the costs in renting your home to decide if you can afford to go that route. Determine the going rental rates in your market using tools like the MLS listings, “shopper” guides, and online websites. Look for comparable properties in your neighborhood to estimate the monthly rent your home could bring. Note features such as square footage, number of rooms, and upgrades such as granite kitchen counter tops. Take location and proximity to desirable schools into consideration while looking for comps. You can also talk to real estate agents and property managers to get their take on pricing. If it turns out that you cannot cover your
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