What to do when you own a home but get orders to PCS

The Whittemore Group is based out of Fort Walton Beach, FL which is a huge military town having two military bases in our area, Hurlburt Field and Eglin Air Force Base. Therefore, we wanted to give you some tips on what to do if you get orders to PCS and aren't sure what to do with the house you own.

When you are PCSing, or moving out of the area, there are 3 options that may work for you. You can rent out your house, sell your house, or leave your house vacant.

Renting out your house

There are a few things to consider before deciding to rent out your house.

                Will you have cashflow? See what the other houses in your area are renting for, then calculate your monthly mortgage payments with principle and interest, HOA fees, and homeowner’s insurance costs to make sure that you can actually profit from renting out your house.

                Who is going to manage your house? Is there a person you can call on who can go to the house and repair things? Do you have a friend or someone who can manage the property for you? Is hiring a rental management company feasible? Management companies typically charge anywhere from 8-10% of the cost of the rent in fees. Are you going to have enough money in savings for any repairs that may come up?

                Also consider the occupancy of the house. How long are you going to lease through? What if someone is not paying their rent? How will you be able to get those renters out of your house? How long can you afford to not have someone renting your house?

                Take into consideration any turnover expenses. Renters may not care about the damage they cause to your property because it’s not theirs. They may rip up the carpet, put holes in the walls, or any other wear and tear.

Selling your house

There are also things to consider before selling your house.

                One option to consider is selling with an assumption. Talk with a licensed real estate professional for more information about this and whether or not it is the best option for you.

                Get your TMO (movers) lined up so that all of your stuff is out of your house before someone else buys and takes possession of your house.

                Have a game plan for if your house sells before you plan to move to the new area.

                Plan for house hunting days in the new area that you are moving to so that you can make sure you have a place to live when you get there. Also, have a short-term plan for where you and your family can stay if you aren’t able to move right into a new house in the area you’re moving to.

                Come up with a plan for selling your current home. Are you trying to sell as fast as possible? Or are you trying to sell for the most amount of money? It’s important to have your priorities in order when selling your home. You can talk with your real estate agent about the best position for selling your house.

Keep your house vacant

Another option is to keep your house vacant. Maybe you live in a great vacation place (like here on the Gulf Coast!) and want to keep your house as a vacation home for you and your family.

However, you should take into consideration when moving to a new area whether or not you can afford to buy a house there without selling your current home. This all depends on your debt to income ratio. How much are you spending in expenses each month? Do you have a car loan or student loans? How much money are you bringing in each month as income? It's a good idea to calculate all of your expenses before making a decision.

If you still aren’t sure whether to sell or rent out your house before PCSing to a new area, contact a real estate professional who will be able to give you a better understanding of your market, and together you can explore your options. An agent can also give you more information about using your VA loan for multiple houses. If you need an agent, or simply need advice, we are happy to assist you! Give us a call today!

Need tips for preparing your house for movers? Check out this blog post!

Also check out our tips for preparing to sell your house!