- Many people choose to rent out their current home instead of selling it when they purchase a new home. You may choose to rent it out yourself or hire a property management group to rent it out for you. If you choose to rent it out on your own, you will have to deal with tenant issues when they arise. If you hire a property management group, they will handle tenant issues for you. Income from home rentals must be reported to the IRS. Report your rental income on Schedule E of the 1040 tax forms.
- If you can afford both mortgage payments and you'll be visiting your old area often, you may choose to keep the home as a vacation home. If your current home is in an area where you might like a vacation, this may be an ideal solution. You may be able to write off the interest on both your vacation home and your new primary home. Consult a CPA or tax professional to see if you qualify.
- Call a real estate agent and ask about selling your home. If you're not able to afford two mortgages, and are uncomfortable about renting the home or choose not to rent it, selling the home may be your best option. Depending upon where the home is located, it can take as little as 30 days or up several months to sell it. Find a real estate agent experienced with helping people sell their homes and relocate.
- If you're relocating due to a job transfer or a new job, ask if your employer provides relocation assistance. Your company's relocation package may include helping you sell your current home. Some companies will even buy your current home so you have your equity to put down on a new home. This may not be a standard benefit; your company may require you to ask for it instead of offering it to you.
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