Do you want to sell your investment properties?
Many property investors want to sell their units after discovering highly favorable market conditions. Selling the properties isn’t usually an exit from investing altogether. Instead, you can put the profits to work and invest in new properties.
Sometimes the conditions are not favorable, yet you still see the need for selling your assets. For instance, you could notice that particular rental units are driving down the performance of your investment portfolio. Getting rid of these sub-optimal investments makes sense in these cases.
However, planning to sell an investment property doesn’t exactly follow the same logic as finding buyers for your own home. You need to take prior action and take relevant steps to maximize the potential return on your investment.
Now we are listing the top tips for putting your investment property up for sale. Follow through with these practical suggestions to gain an upper hand on the market and make the most out of your real estate transactions.
Determine the Correct Price
Find the right price for your investment property. When you overvalue your property, there will be fewer prospects interested in it. But undervaluing the rental unit will leave more money on the table.
Only a strategic approach like comparative market analysis can help you find the correct price. Using this method means checking the recent sales prices for comparable properties in your area.
Sometimes there isn’t enough data available for the particular neighborhood. In these cases, you can widen the scope. Just make sure not to cast too wide a net because the number of irrelevant data points could increase too much.
Cut Down on Running Costs
Your buyers are looking for rental properties that have lower running costs. A significant part of the investor’s appeal is based on the property’s positive cash flow generated each month.
Lower your operating expenses by ensuring HVAC efficiency, repairing water leaks, and purchasing energy-efficient home appliances. You could decrease the monthly expenses by making a lot of smaller practical cost-saving decisions.
Do Your Research
Always check the market conditions before listing your investment property for sale. It’s important to understand the wider developments that are going to happen in the neighborhood.
Keep in mind that your buyers are going to be property investors. They care about the long-term implications of changes in infrastructure, new housing construction, and other significant developments in the area. Recognize the positive trends and educate your prospects.
Stage Your Investment Property
Private home sellers often use the help of home stagers to sell their properties. As a property investor, the benefits of home stagers are still there. When you work with an experienced professional, they will help you land a deal quicker and for a bigger sum of money.
These are the top benefits of staging your property:
- Highlight the unique features and remarkable amenities of your rental unit.
- Depersonalize the living space to emphasize its primary role as a rental.
- Increase the perceived value of your investment property in the eyes of visiting investors.
- Improve the chances of quickly selling your rental for the price it deserves.
Attach High-Quality Images or Videos
Nowadays it is very hard to sell investment property without having proper visuals to accompany your sales copy. Investors want to see at least a decent number of high-res photos of your rental. But some buyers want even more than that.
If you have the means, shoot high-quality videos that show the layout, atmosphere, and all the major amenities of your investment property. Listings complete with HD videos get better engagement, which could boost both the number and quality of the offers you get.
Assemble All the Paperwork
Investment property buyers are interested in how your rental unit is doing financially. You need to have solid documentation to back up your words. Among other documents, demonstrate your expense, income, and budget sheets.
Additionally, you should shot any paperwork related to substantial repair, remodeling, and renovation projects that have been carried out. Be transparent and clear about the financial side because this is one of the “make or break” areas of investment property transactions.
The Bottom Line: Selling Your Investment Properties
The selling of investment property calls for different principles compared to selling your home. Investors are going to have a distinct mindset and expectations that differ from to-be homeowners.
Take these steps to successfully sell your investment properties:
- Find the right price for your property that reflects its worth and prospects as an investment.
- Gather all the necessary paperwork that shows how your investment property is doing in financial terms.
- Minimize the monthly running costs to boost investor’s appeal.
- Take high-quality photos. Consider adding HD video walkthroughs for maximum interest.
- Research as much as you can to better understand the neighborhood and its future.
Stage your investment property to sell quicker and for a more solid closing price.
