If you are like most investors that have purchased distressed properties, such as foreclosures, over the last few years while these homes could be obtained below market value, then you are more than likely wondering if now is a good time to sell a home.
Although home prices are rising throughout the country, including in the Birmingham area, it may be best to hold on to your investment property just a little while longer if you are looking to maximize your return on investment (ROI).
Redfin conducted a survey that found that 54% of real estate agents said that now is a good time to sell a home in 2012. In comparison, the number increased to 82% this year. On the other hand, a Fannie Mae survey revealed that only 40% of those surveyed think that now is a good time to sell a property.
Although investment confidence is increasing and the real estate market is progressing toward recovery, it is essential to note that most real estate market experts expect home prices to continue to rise throughout the remainder of 2013 and throughout the foreseeable future. Therefore, if you have an investment property, then it may be better if you rent the property for a little while longer before trying to flip the home for a profit.
If you decide to rent the property, then you then have to choose whether you would like to be a landlord or if you would rather hire property managers in Birmingham, AL to manage your property for you.
Being a landlord is time consuming and is ideal for those who are sincerely interested and enjoy the tasks associated with everything from tenant selection and rent collection to addressing maintenance requests. On the other hand, if you are not interested in being a landlord then hire a property manager to take care of the day-to-day matters while you focus on doing what you love.
If you choose to hire a Birmingham, AL property manager, then make sure you ask the right questions to ensure that you are selecting a company with a solid reputation and experience with the local real estate market.
In conclusion, now is a much better time to sell a home than over the last few years; however, with home prices continuing to rise investors may wish to turn their properties into Birmingham rental homes and wait a little longer before putting the property on the market.
Matthew is the CEO of Evernest. He is a student of the book Good to Great and is passionate about building the best property management company on the planet (and maybe even the universe if Elon Musk will hurry up). You can usually find Matthew at the baseball field with his son, at a dance recital with his daughter, or at his favorite restaurant with his wife, when he’s not in the office. And if you can’t find him in any of those places, it probably means he’s traveling.