Are you looking to sell your investment property?
Selling your rental unit makes financial sense when the market conditions are favorable. You can use the profits for further investments or other purposes. Putting your rental property up for sale could be the best decision in the long run.
There are other possible reasons for wanting to sell your rental. For instance, if it isn’t performing well, it may be time to remove this property from your investor's portfolio.
Putting your investment property on the market is different from selling your personal home. Planning things ahead in detail reduces the chance of leaving extra money on the table.
In this article, Upkeep Media Inc. goes over the best tips for selling your investment property. After reading this, you’ll understand the steps to take to maximize your sales profit.
#1: Conduct Plenty of Research
For starters, you should research the current market conditions. Your prospective buyers are interested in the long-term renting potential and developments in the neighborhood. Remember that they are looking to make a lucrative investment.
Some of the important aspects to consider checking include the local employment situation, occupancy rates and future projections. Property investors prefer rental real estate in areas that have job opportunities, low crime, and future prospects.
#2: Gather the Necessary Documentation
Assemble and organize all the documents that reflect your property's financial health. The income, expenses, and budget sheets all contribute to a better understanding of your rental's financial situation.
The paperwork should cover remodelling, repairs, maintenance, and improvement projects. Attach a complete list of your capital expenditures. Showing clarity and transparency raises the chance of closing a deal.
#3: Hire a Professional Home Stager
Putting your investment property up for sale means that you can benefit from offering a staged home. You may be surprised how big of a difference staging can make.
Professional home stagers use a wide range of strategies to maximize a property's appeal. As a result, you can expect the following outcomes concerning your selling efforts:
Depersonalizing the unit boosts the property's status and curb appeal.
Visiting prospects may feel that your investment property is worth more money.
Your rental's top features and amenities will receive the attention they deserve.
There’s a greater chance of quickly selling your property for a higher closing price.
#4: Find the Right Price
Both undervaluing and overvaluing the price of your property are bad approaches. Neither one of these scenarios will protect your interests as an investment property seller. You need to find the correct price to land a successful agreement.
To find the correct price, carry out a comparative market analysis. In short, this means you will list the recent closing prices for comparable investment properties in the same neighborhood. If your property’s immediate surrounding has limited data, you can expand your scope.
#5: Reduce Regular Expenses
Property investors prefer rental units that have low operating costs. You'll see an instant boost in investor's appeal when your monthly positive cash flow is more competitive.
Check for water leaks, raise your A/C and furnace efficiency, and switch old appliances for new ones. These small actions can lead to greater savings on your monthly expenses.
#6: Provide High-Quality Photos
Attach high-quality photos to your investment property listings. Nowadays, the importance of outstanding visuals is greater than ever. Some investors may overlook your listing if they can't access a photo gallery.
An additional option is shooting HQ videos. You can do these in a walkthrough fashion to provide a concise overview of the major features of your property. It has been shown that video content is a strong predictor of high engagement online.
In a Nutshell: Selling Your Investment Properties
Selling your investment property could be profitable. When the market conditions are right, making an exit may be the best decision long-term. Plus, sometimes you just need to quickly cash out because a property drives down the performance of your portfolio.
Here are our top suggestions for reaching a successful sale of your property:
Consider the services of a professional home stager.
Do as much research as you can before putting your property up for a sale.
Take professional photos and shoot HQ videos to boost interest online.
Determine the correct price by conducting comparative market analysis.
Cut your monthly expenses to improve the positive cash flow.
Find and organize all the documentation showing your property's financial status.
So, there you have it – 6 ways to sell your investment property!
If you have any other questions, feel free to contact us.