California home values are insane. The prices of houses in San Diego are even crazier. Many people from places like the Bay Area and Los Angeles have realized that San Diego is a great place to live and can be more affordable than their current markets. Now that home values are very high in San Diego, homeowners are asking themselves if they should sell their houses and rent for a while. Does that sound crazy? We don’t think so! Selling your home is still possible when the market values go up (or down) dramatically. Check out this resource for more information about how to sell your house fast in San Diego. The amount of effort to actually secure a good place to live is hard too. The real estate market here in Southern California is competitive.
Today, we will review the question: should I sell my house in San Diego and rent?
Renting a house in San Diego versus owning
There are tons of pros that come along with renting a house. First off, you don’t have to pay a mortgage. Many of us know that mortgage payments are extremely high in San Diego. They cost so much to buy a house here. It makes it very challenging for new home buyers to enter the market. This keeps many people renting for years (or lifetimes) in San Diego and Southern California. You also don’t need to pay the following expenses when renting a home versus owning one:
- Property taxes
- Maintenance (that happens naturally)
There can be a ton of effort that goes into selling a home. You must prepare your home for sale to attract the right kinds of buyers. This can require you to clean, paint, and complete repairs. Ideally, if you invest in repairs when preparing your home for sale, you can make it up on the backend when you sell. That way, shelling out cash for these expenses doesn’t feel like a sunk cost.
Buying back into San Diego real estate
Since home values are so high right now, many residents are considering whether to sell their houses in San Diego and rent. Most people have the plan of renting for a few years until the market goes through its dip (downtrend) and then rebuy back into the San Diego real estate market. This is a powerful strategy that can earn people a ton of profits. Think about it…
If you bought a house anytime in the past decade (2012 – 2022), there is a 99% chance that it is worth more than what you paid for it. This is true even if you overpaid for it at the time. San Diego’s real estate values have skyrocketed in the past few years. That has granted many homeowners large amounts of equity. “Buy low, sell high”. Many homeowners in San Diego are considering selling their homes and renting for a few years. They want to take advantage of the high values now, assuming that they will be lower in years to come.
Selling a house in California
There’s no doubt that selling a house in California comes with some baggage. You may need to split the profits with family members or pay realtors expensive commissions. Either way, make sure that you work with someone that you trust. You can vet real estate companies by checking out their online reviews. It is very telling if a company has multiple negative reviews. Of course, take each one with a grain of salt when preparing to sell your house in California.