being more than the home value. By 2016, American home prices had recovered nearly all the losses from the 2006 downturn, although when adjusted for inflation, prices are still 20% below the 2006 peak. Renting your home versus selling has many factors to consider. For example, is real estate a good investment in the overall economy? Is the housing market in general moving up or down? If waiting two or three years would result in substantial appreciation in local home 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.
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