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8 Owners’ Options in Today’s Market – 2021 Version

Owners in the US right now have 8 options of what they can do with the property they own.

By focusing on all possible options, Owners can more clearly see, in their own situations, which are NOT options… and which ARE.  

And when Owners clearly understand the pros and cons of each option...

They can make better decisions. I hope this helps YOU in your best decision.

Option #1 - Keep the property, make the payments, and live in it.  If the home works for you location-wise, size-wise, cost-wise and you’re enjoying it now, great. No one is going to make you sell if you’re making your payments. If it will NOT work for the upcoming next real estate cycle, keep that carefully in mind. The market is very good. It will not always be. 

Option #2 - Keep the property, make the payments, and rent it out.  If it’s been a rental, you can choose to keep it one. If it’s been your primary residence and you want to turn it into a rental, talk to a property manager and your tax advisor/CPA about what that will mean for your cash-flow and tax status for the property. (Capital gains, etc.) Note: If you have fully depreciated the property or if it has upcoming major maintenance like a new roof, appliances, electrical, plumbing, siding, etc. then you may want to consider cashing out or doing a 1031 Exchange into a better property while the market is great. 

Option #3 - Keep the property, make the payments, and maintain it vacant, or use it part-time as a 2nd home/vacation home. Again, talk to your tax advisor about what that means to you tax-wise. 

Option #4 - If you have Equity you may choose to sell the property. Price it well and sell it now. It’s a great time to sell and to buy. You may consider finding sooner rather than later the home you want to live in for the real estate next cycle, whenever it comes. It will come. It always does. Therefore, if you have the ABILITY to get where you want to be and have an inkling that could change before you acted, then do it now. Get stuck where you WANT to be, not stuck in a home that won’t work for another cycle.  

Note #1: Homes ARE selling if they are priced correctly. Overpriced homes are not selling. You MUST price correctly to sell based on current comparable sales. There is NO OPTION to price the home higher than its worth. If you have equity, it’s the same as option 1, 2, or 3. You simply keep the property. (Think about that)

Option #5 – If you have Equity, you can choose to sell Wholesale to a Flipper or Investor for under market value quickly. With current market condition in MOST markets, there is no need for this option. A well- priced property will sell. Why give your equity to someone else to profit them?  Call your Realtor instead

Option #6 - If you do not have Equity… Sell the property and bring money to closing to avoid your loan payoff being short.  

Option #7 - If you do not have Equity & do not have Cash… Sell via a Short Sale, if your Bank will approve it. Note that if you have other assets, the Bank may NOT approve a short sale.  Note: VERY few people need to sell short in today's market. In our area a report JUST came out that showed an increase in average price 16% Oct 2019 to Oct 2020.  

Option #8 - Do a deed-in-lieu of foreclosure if your Bank will approve it… OR simply allow the bank to foreclose. There is not a huge difference, hence this just showing as one option. 

Note #2: Options 1-6 do NOT damage your credit. Options 7-8 do damage your credit to varying degrees. Be sure you understand before choosing an option.

Again, talk to your REALTOR. Note: Not all real estate agents are REALTORS.  Be sure yours is. They follow a strict code of ethics. 


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