Real estate investors most of the time rely on selling the house or property to earn profit and preserve capital. While it may sound so simple and straightforward, property selling is the most difficult part of the entire process. One wrong decision and you’ll end up burning your profit, or even worse part of your capital.
Learn How To Sell Your House Fast And Make Quick Cash
Whether you are novice of seasoned property investor, you need to listen to what the experts tips on how to sell your property investment. Sibei Mi of Lending Home wrote the most effective home selling tips for property investors to preserve their capital and fully maximize their profitability.
8 Home Selling Tips for Property Investors
You’ve found, bought, and successfully renovated a property. What now? Let’s walk through 8 tips on how to sell your fix-and-flip property.
You have found the right investment property to purchase, determined the home improvements and repairs to make that add the most value, and successfully renovated the property. So now your house flip is done, right? Not so fast. You still need to sell the rehabbed property for more than your purchase price and combined costs.
Presenting an impressive property is one of the best ways to secure a potentially fast and profitable flip. But before putting the house on the market, you still have some work to do to increase the chances of a fast and profitable transaction. Start off by preparing the relevant paperwork about your property, which includes the property title deeds, mortgage and financing documents, tax and insurance records, inspection reports, etc. You will also need to hire a good real estate agent to market your property and bring in potential buyers.
Keep in mind that the longer your house sits on the market, the more soft costs you continue to pay. Luckily, the preparations you make before the sale could reduce the property’s time on the market and increase your potential profit at closing.
Here are 8 actionable home selling tips you can follow today to find the right buyer for your property:
1. Determine potential profit
Before listing your property for sale and even before rehabbing, get an estimate of the after repair value and potential profit so you know what to potentially expect. Consider:
- The amount you owe on the hard money loan or any other sources from which you have acquired financing. Remember that the longer you hold the property, the more you will have to pay.
- The tax basis for your property. Speak with your financial advisor or accountant to help you determine how much you are going to owe in taxes.
- The closing costs you would be responsible for during the sales process, which could include but is not limited to a Realtor commission, realty transfer tax, recording fee, and attorney fee.
- The estimated market value of the property, based on the comparable properties that were sold in your neighborhood in the past 6 months to a year.
2. Price it right from the outset
Some sellers may contend they should start with a high asking price and then lower it later in case the house does not sell. However, that could delay the sale – at times, even at a much lower price.
“The initial thirty days’ activity of your home being on the real estate market is often the best activity you will see,” says Michael Mahon, GM of HER Realtors, the largest agent-owned real estate firm in the United States. If you price your home too high, most buyers, as well as their agents, may stay away and assume that you are not willing to negotiate or are not serious about selling your property. That’s why pricing your home right from the start is imperative if you want to sell your home fast. See full post here…
When it comes to selling the property, the first thing you must determine if the potential profit of the property. That means before thinking of listing your house or do some repair works, get an estimate of the after repair value and the potential profit. Follow the experts’ tips above and you’re good to go.
Cathie Ericson of Realtor.com also listed the best tips on how to sell an investment property and make a killing out of it. There are several ways to maximize profit potential in selling a property.
How to Sell an Investment Property and Make a Killing
An investment property, by definition, is a place with one simple goal: to make money. So if you want to learn how to sell an investment property, we’d wager that maximizing those profits is likely your top priority.
In many ways, the steps to selling an investment property are the same as selling a home where you live: You hire a listing agent who will market your property on realtor.com® and start bringing in potential buyers. Still, since investment properties operate under different rules taxwise than a home where you live, you’ll want to ask certain questions.
Here are the factors to consider—plus the fun part: how much money you could stand to make.
Should I sell my investment property?
First things first: Are you sure you want to sell? Because there are other options that could drum up income—steady income—such as renting it out.
Whitney Nicely, principal broker with Whitney Buys Houses in Knoxville, TN, has more of a buy-and-hold mindset. “It’s silly to sell the one you have unless you have a really good reason,” Nicely says. So yes, there are valid reasons to sell, but you should make sure yours make the cut:
- The neighborhood is changing. If the hood is hot, and you’ve made a pile of cash, it could be a good time to take your money and run. Conversely, if a neighborhood is deteriorating, you might want to get out before it falls too far. “Even if you end up only breaking even on your property, at least you won’t lose money if the market continues to dive,” Nicely says.
- The property needs massive repairs. Maybe you’re looking at a foundation or roof that needs overhauling, or another big-ticket expense on a rental house. Or, a condo you’ve invested in is due for a major assessment. “If substantial repair work is needed, or you just don’t want to put the energy into it, it is likely a good time to move on,” says broker Jared LaFrenais of Douglas Elliman in New York. However, you need to disclose these issues and will likely figure them into the price notes.
- It’s a tax liability. Owning property, even as an investment, can bump you up a tax bracket. That’s a good reason to sell, especially if you have no interest in being a landlord. You also should take note of potential expiration of tax abatements, notes LaFrenais. “If, for example, your investment is a condominium in which you generate a rental income, the expiration of an abatement and the resulting tax increase will impact your finances, so consider the advantages to selling before this occurs.”
The ultimate goal of investing in real estate if of course to make money. So when selling the property, always prioritize how to maximize those profits. You may hire an agent, or do the selling alone. Also before selling, make sure to fully understand the purpose of you being invested in the real estate market.
Especially for first time home sellers, the pressure of making a profit is really big. Elizabeth Weintraub of The Balance made some very helpful tips in selling a property for the first time. Read the article below to learn more.
Real Estate Tips for a First-Time Home Seller
Homeowners don’t generally think about filling the shoes of a first-time home seller until they decide to buy a new home. Usually, the motivating factor is the need to move — due to work-related issues or the needs of a growing family — and that generally involves buying another house.
It’s when the homeowners stop to consider the move that it may dawn on them, yes, because they need to sell, they are now a first-time home seller. Selling a home is very different from buying a home. Whereas buying a home generally involves emotions and feelings, selling a home typically centers on what listing agents like to call maximizing profit potential.
Price Your Home Accurately
Price your home accurately. For this, you should enlist the help of a reputable listing agent. Don’t choose your cousin’s sister-in-law, for example, who dabbles in real estate. You’ll fare much better if you select an experienced real estate agent who sells a fair number of listings, preferably in your neighborhood.
Your agent will analyze comparable sales and prepare an estimate of value often called a CMA, for comparative market analysis. It is OK to compare the Zestimate at Zillow but note the variances your agent will point out because your listing agent should have the experience and education to provide you with a more accurate opinion of value.
Home Staging Boosts Selling Power and Appeal
Ask your agent to advise you on preparing your home for sale. Most homes show better with about half of the furniture removed. If a buyer walks in the door and wonders if anybody lives in the house, you’ve done your job correctly. Consider home staging to boost your selling power and appeal. Painting is the single most effective improvement you can make. Don’t let dings in the woodwork or scraps on the walls make your home reflect deferred maintenance. Click here to read the rest of this post…
While the goal of real estate investing is to make a profit, one wrong move in selling the property could lead to profitability getting burned as well as the capital. Home selling isn’t an easy task. There are several conditions you need to follow or think in order to get the best deals available while fully maximizing profitability.
If you’re a novice and don’t have the experience in selling property, Dependable Homebuyers can give you the best advice you can get in the real estate selling world. To learn more, visit https://www.dependablehomebuyers.com/sell-your-house/ and we look forward to hearing from you.
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