What to do if you can’t sell your house?
What to Do If You Can’t Sell Your Home
If you’re unable to sell your home but need to move, renting it out may be the best option. Homeowners in Helena who purchased between 2022-2024 may face challenges selling without a loss due to rising interest rates and housing prices. Unfortunately, this is a common scenario during shifting market conditions, requiring creative solutions like renting to cover monthly mortgage payments.
Market Conditions: What to Expect
Interest Rates in 2025: Rates are expected to decrease modestly, with the Federal Reserve projecting two quarter-point rate cuts, bringing the federal funds rate to 3.75%-4.00% by the end of 2025. However, persistent inflation and strong economic growth could keep rates higher for longer.
Mortgage Rates: Despite slight declines, mortgage rates are likely to remain above 6%, limiting refinancing opportunities and impacting home affordability. This means selling at a desired price may continue to be difficult for many homeowners.
Why Renting Might Work for You
Income Generation: Renting can help offset your mortgage payments. However, be aware that rental income might not fully cover costs. For example, a $3,200 mortgage might exceed local market rents of $2,800 for similar properties.
Tax Benefits: Renting turns your property into an income-generating asset, allowing deductions for mortgage interest, repairs, management fees, and more. Additionally, if you incur a monthly loss (e.g., rental income doesn’t fully cover your mortgage), this loss can often be deducted as a business expense. While a loss may seem negative, it can offset other taxable income, reducing your overall tax liability and making the financial hit less impactful in the long run.
Key Considerations for Renting
Responsibilities: Renting comes with obligations, including adherence to fair housing laws and providing a habitable space. This exchange of services for income comes with legal and practical responsibilities.
Liability and Costs: Factor in potential costs like tenant turnover, maintenance, and property management when evaluating your decision.
Next Steps
If you’re struggling to sell your home and want to explore the benefits of renting, fill out the “Free Rental Estimate Form.” We’ll help you evaluate your options and create a plan tailored to your needs.
