Making the final decision to sell your investment property isn’t easy. You must make certain you are selling at the right time. This will help put you in a position to maximize your profits at the closing table.
Should You Sell Your Investment Property?
There are many schools of thought when it comes to choosing the right time to sell an investment property. Some real estate experts believe that holding onto investment property for a long period is a sound strategy. However, this approach may not be ideal for your situation.
Here are some situations that may indicate it’s time for you to sell:
- You’re ready to retire – Selling your investment property can free up money for your retirement. Please keep in mind that selling an investment property after retiring could have a huge impact on your pension.
- You’re interested in investing in another market – You may want to consider selling if you find a property in another neighborhood.
- A major change in your life – A big change in your life may force you to think about owning an investment property. The following reasons force many people to sell their investment property: the birth of a new family member, being laid off from the job, death in the family, and sudden illness.
- The neighborhood is changing – If the market value of the homes in the area has increased, it may be time for you to cash in. However, you may want to think about selling if the market value of the homes in the area has gone down.
How to Sell Your Investment Property the Right Way
So, you’ve decided to sell it. Dozens of real estate selling systems have emerged over the years. However, we must point out that many of them are complicated.
Here are some simple steps that can help you sell your investment property with ease:
- Hire an experienced Realtor – It will cost you 6% of the selling price, but a Realtor’s services should not be undervalued. They play an integral role in the selling process. For example, they know how to market your investment property, and find a qualified buyer within a reasonable amount of time.
- Listen to your Realtor – You need to take heed to their advice. If you don’t, you may not get to the closing table.
- Make upgrades to the property – There’s an old saying in life, “It’s the little things that count.” This adage holds its weight in real estate investing. Making upgrades to your property will make it more appealing to prospective buyers. This will improve your chances of getting a buyer.
- Sell at the right price – Pricing your property properly will have a positive impact on the selling process. If your property is listed slightly below its market value, there will be more demand for your house.
- Exercise patience – It may take several months for someone to step up to the plate, and buy your property. However, exercising patience will help you make it through the selling process.
- Don’t be afraid to say no – Knowing the true market value of your home will help you avoid low-ball offers. The right buyer will eventually come along.
Selling is an investment property is a big decision. If you’re ready to cash in, there’s no reason for you to reinvent the wheel. The tips listed above can help you sell your property like an experienced real estate professional.
Selling your house may not be easy as you may think. Between getting it ready for showing and finding the best realtor to sell it for you, it’s a hectic and overwhelming process. There’s nothing as bad as placing your home on the market, only for it to remain unsold months later.
To increase the resale value of your home, it would help to be proactive about repair and maintenance. Planning a remodel job may also go a long way in adding value to your home when it’s time to sell it. Here are 3 home renovation projects you should do if you’re looking to sell your house.
A Bathroom Upgrade
Renovating your bathroom is one of the easiest ways of increasing the value of your home. Such a project will make it possible to install completely new plumbing fittings and fixtures.
You could also take advantage of this opportunity to put in shower heads that consume less water each minute, and toilets that utilize less water during each flush. This way, your new bathroom will lead to less water wastage, leading to cheaper water costs. This is bound to have a heavy impact on the house’s resale value.
Finished Basement Space
Having a completed basement will help ensure that your home is properly insulated. This means that there will be less leakage of heat into and out of your home, implying that you’ll spend less money cooling and heating up your house. It will also provide extra space that could serve as a wine cellar, gaming room, or even a family TV room. A finished basement is more than likely to jump out to a homebuyer that’s looking for maximum space.
Upgrade the Kitchen
The kitchen is arguably the most important room in every house. By providing the space to cook good and nutritious food, a functional kitchen plays a key role in making sure you and your household lead a healthy lifestyle. Renovating your kitchen would, therefore, be a great way of adding value to your home before putting it on sale.
Remember to upgrade the flooring, countertops and cabinetry to something new and elegant. If you can, put in a new kitchen island- this will make the kitchen even more functional.
Calling in a professional remodeling service will make sure you have someone you can entrust your home to. Although some home renovation projects may be quite expensive, it’s possible to get almost all your money back when you put your house on the market. These projects have great return rates, and will make sure you sell your home without having to compromise on prices.
When handled correctly, investment properties can be profitable undertakings. Yet, the potential rewards do not come easy. It takes a large amount of hard work and dedication to experience desirable results. For those that want to try a hands-on approach to their properties as well as take home the full profit, here are tips that can set them up for success.
Become Skilled at Organization
Handling one property may seem easy, but with multiple estates, many more activities can occur at a wide variety of times. To keep the properties updated and rent collected on time, owners have to become experts in organization. This involves having all the necessary documents, dates, and repair work scheduled, recorded, and saved in a secure place. Better yet, they will see even more positive results if they master computer and web-based applications well.
Understand Market Value
There is a fine balance in creating a profit from rental holdings. If the owner charges a price that’s too high, they won’t find the tenant they require. Yet, if they charge less than they should, they can suffer a tremendous loss. By learning about real estate market analysis, they can see how size, location, and price can factor into their income-generating process.
To gain a profit from their real estate, owners must keep them filled with desirable tenants. This is best done by using the most popular online and print sources, which will yield a large pool of applicants. Moreover, they should showcase the features that cause their property to stand apart from other rentals.
Thoroughly Screen Potential Tenants
As owners acquire and rebuild their properties, they have a vision in mind about how they would like their real estate used. No one wants to see their hard work go down the drain by excessive damage or delayed payments. By deep-diving into the past of prospective renters, they will learn if they have a steady income and good credit. Owners can also speak with the applicant to learn if they have pets and how many people will occupy them.
Even after making the right decisions, owners will still encounter problems they have to solve. The best way to prevent problems from getting out of hand is by preparing for them before they occur. By maintaining relationships with lawyers, contractors, and handymen, a property owner won’t have to lose precious time when an issue occurs.
Just by setting up the right structure and plan, property owners can experience an impressive return with multiple investments.
A multifamily property is a dwelling that holds more than one unit, allowing several families to occupy the same building. These types of properties offer several advantages to those who are interested in getting into real estate investing, especially when their resources are limited. By reviewing the benefits listed below, you can determine if this is the right investment opportunity for you.
Reduce Operational Costs
Each property you own must be maintained to ensure your tenants enjoy a habitable residence. In addition to keeping up with repairs, this will involve maintaining the grounds, looking after the HVAC units, and conducting other types of preventative maintenance. This can be significantly less costly when all of your rental units are located within the same building. You’ll save on the time it would take to travel to each location, and you’ll save money by maintaining property features that service multiple apartments.
Save on Property Purchases
A single multifamily building that holds four units is going to sell for significantly less than buying four properties of similar value in the same market. When you live in one unit and rent the others to tenants, you can maximize the return on your investment by reducing your expenses. You’ll also save on property taxes in that you’ll only be paying taxes on one piece of property, even though you’re earning income on multiple units.
Eliminate the Work of Buying Property
For each property you buy, there are several stages to go through, including the assessment, inspection, title search, and offer negotiations. Instead of trying to buy several different properties and going through these steps with each one, it’s simpler and more cost-effective to buy one multifamily home. You can find a property with the number of units you want and save time and money throughout the buying process.
Owning a multifamily home provides many more benefits than those listed here. Overall, this is a better risk because, even if half of your units are vacant, you’re still earning income from the other units. This gives you the time to rent out those other units and maximize your income. Having all of your rental units centrally located will make it easier for you to manage the property and communicate with tenants. Multifamily properties are beneficial to own in a variety of ways, whether you’re a first-time buyer or a seasoned investor.