When Should I Sell My House and Rent an Apartment?
Property owners who are unsure of buying again or want to wait until the market cools to purchase may consider renting after they sell their homes. This option comes with a unique set of pros and cons property owners will want to know before they commit to the transition.
However, the following facts will help them determine if they should sell then rent with expert insight from top real estate agents like Nicole Van Den Bosch, who works with 69% more single-family homes than her peers in Show Low, Arizona.
Pros of Renting After Selling
For some, renting after selling can be the perfect way to avoid the mad rush to find a new place — especially if the property owners are in a seller’s market with low inventory and fierce buyer competition. Here are just a few reasons sellers might choose to rent after selling their home: 
Enables Property Owner to Get Next Home Faster
On average, it takes about 56 days to find and close on a home, as of December 2020, according to mortgage data firm Ellie Mae. By comparison, most rental applications take about three days to turn around.
On average, it takes about 56 days to find and close on a home, as of December 2020, according to mortgage data firm Ellie Mae. By comparison, most rental applications take about three days to turn around.
Wait for prices to cool before purchasing your next home
In a seller’s market, property prices increase as buyers compete for a limited selection of homes. That means that if property owners sell their houses in a seller’s market for a great price, they will probably end up paying a higher price for their next home.
If they rent before buying their next home, they can give themselves time to wait for real estate prices to fall. As the real estate adage goes, money is made on the purchase, not the sale.
That said, this strategy is challenging to pull off since it’s almost impossible to predict the market’s trajectory. If the market stays in the seller’s favor, home sellers could end up living in their rental years longer than expected, paying rent rather than building equity.
However, with the
we buy houses Allentown PA experts, homeowners can secure another house as soon as the prices of homes depreciate.
Avoid making an offer with a home sale contingency
Suppose a property owner finds the perfect house to buy before their current house sells, and they need their home sale money to make the purchase. In this situation, property owners will need to include a home sale contingency in their offer on the house they want to buy that states they will purchase the property if and when they own home sells.
As property owners might expect, we buy houses fast Allentown contingency significantly weakens their offer in the eyes of the seller. Unless they’re in a buyer’s market, they may struggle to secure their next home until they can remove this contingency from their offer.
Alternatively, they can sell their house and then rent in the interim so the sellers can make a contingency-free offer on their next dream home. Of course, they’ll need to consider their lease term when planning your purchase timeline to avoid paying fees or excess rent.
Skip the cost and hassle of home repairs
While renting has its drawbacks, it also has its perks. For example, as a renter, one’s rarely responsible for repairs and updates to the home, which are often time-consuming and pricey. Of course, what their landlord will and will not repair be dependent on their lease.
Take more time to explore neighborhoods for your next home
If nothing else, renting after selling buys the seller more time to find their next home. It’s easy to rush into a home purchase in a seller’s market when inventory is limited and end up with buyer’s remorse.
Not only that, for some, renting after selling can be the perfect way to avoid the mad rush to find a new place — especially if you’re in a seller’s market with low inventory and fierce buyer competition. (1)
When a property owner rents after they selling their homes to we buy houses Pennsylvania agents, they can take their time to decide what they want and where they want to buy while renting. Also, the homeowner can rent in an area they’re interested in as a trial run before committing to purchasing property there.
Corns of renting after selling
If a property owner is considering renting after selling, they need to consider the downsides, as well. Here are a few drawbacks that might prevent them from signing a rental application after their home sale:
Moving twice is stressful and expensive
If a property owner makes a pit stop to a rental before their next place, that means they’re going to have to move twice. While they might be able to put some things in storage between the moves, it’s still going to require quite a bit of work and money.
The average cost of a local move for a 2–3-bedroom home is $1,250, while the average cost of a long-distance move (over 1,000 miles) is $4,890. Even if the property owner is moving locally, moving twice could cost about $2,500.
Your rent goes into another owner’s pockets
The most glaring drawback of renting after selling: The property owner won’t be building home equity. Instead of paying their mortgage, they’ll be paying rent, which they’ll never see a penny of again.

Of course, the former property owner will have to decide how important equity is to them and how long they feel comfortable renting.
There may be a rental shortage in the market
A seller’s market can cause rental shortages, meaning that they would have fewer rentals from which to choose. Finding a rental can be tricky even without a shortage.

It’s best for home sellers to speak to their real estate agent about the market in their area before they put all their eggs in the rental basket.
Rent may cost as much as the former mortgage
In some parts of the country, rental prices may be similar to the property owner’s mortgage, or even more. They can use SmartAsset’s “Rent vs. Buy” calculator to help decide if they would be paying more or less in monthly costs for renting or buying. This tool considers the yearly income, current rental rate, and the price of a home to help them decide to buy or rent.
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About the author
Mathew Pezon
Mathew Pezon is the founder and CEO of Pezon Properties, a cash home buying company located in Lehigh Valley, Pennsylvania. With several years of experience in the real estate industry, Mathew has become a specialist in helping homeowners sell their properties quickly and efficiently. He takes pride in providing a hassle-free, transparent, and fair home buying experience to his clients. Mathew is also an active member of his local community and is passionate about giving back. Through his company, he has contributed to various charities and causes.
