The coronavirus pandemic sent the U.S. housing market into overdrive, with mortgage rates at record lows, few homes for sale, and prices that went through the roof. Many Americans also questioned whether they would be happier in a different house or neighborhood because they spent more time at home during lockdowns and social isolation.

If you're considering selling your current home, you may wonder if you should sell it or rent it. Both options have important pros and cons, and your final choice will depend on the property, your finances, and your personal situation.

Let's consider what you need to know to decide whether you should rent or sell your house.

The Pros of Selling Your Home

With home prices where they are across the country, there are good reasons to sell your house right now. Here are a few reasons why selling your home may be a better choice.

1. Selling your home gives you lump-sum cash for emergencies.

You may have a large amount of extra cash when you sell your home. Your home's equity has grown since you paid off your mortgage, and the price has increased. When you sell a house, you turn the property's equity into cash that can be used to buy other assets.

2. You can save money from taxes.

If you have lived in your home for at least two of the last five years, you can avoid paying capital gains tax on up to $200,000 of your earnings when you sell your home. Because capital gains tax can cut the amount of money made from the sale of a house by a lot, this can be a perfect thing from a financial point of view.

3. You don't have to take care of a rental property in any way.

Not everyone has what it takes to be a landlord. But suppose this is the only thing stopping you from moving forward, and the rental prices in your area seem too high. In that case, a professional property management company can help you.

4. You get money readily available.

When you sell your home, you receive funds that you can use to purchase a new one. If you live in an area with a lot of demand for real estate, you can get a lot of bids at the price you want. If your neighborhood is in high demand, you may get higher bids than your asking price.

The Cons of Selling Your Home

Selling a house can be tricky, take time, and cost money. Even though it might be the least expensive choice, it has some problems.

1. Most of the time, the sales process doesn’t always go your way.

You can probably assume that you will find a buyer for your home quickly. Sadly, this doesn't happen very often. During the process of selling a home, many things can go wrong. For example, the seller might not want to make needed improvements, have unrealistic expectations about how much the house will sell for, or be working with the wrong real estate agent.

2. You should bring your house up to date.

Before you can sell a house, you will need to make some changes. A buyer who offers to buy your house will want changes and improvements before the deal is finalized. If you don't want to change the property, you should expect to lower the price you want to sell it for.

3. There is a chance that you will lose money.

When you sell your property, you will make very little money or even lose money. If you bought your house when the market was at an all-time high and now live in a place where house prices are going down, there is a chance that you won't get your money's worth out of it.

Final Thoughts

Ultimately, it's up to you to decide if you want to sell or rent out your home. Taking into account the details of your situation is the best way to decide which option is best for you, rather than asking your close friends or family members. 

Working closely with a real estate agent on this matter could also turn out to be helpful. Loft Realty is here to give you the knowledge and experience of a trained professional so that you can make an informed decision about moving forward based on the details of your own situation.