To ensure you get the best return on your investment and a quick sale, it’s important to prepare your property for the market effectively. Regardless of selling with a realtor or selling FSBO, it’s important to set yourself up for success. Outlined below are the steps to prepare your property for a successful sale.
Optimize Curb Appeal for Investor Appeal
When it comes to selling your investment property (or any property for that matter), “Curb appeal” is a top priority. Enhancing your property’s curb appeal is not only about aesthetics but also about attracting savvy investors and in turn, their future tenants. Power-wash the exterior, clean windows, and ensure the property looks well-maintained. Even if you’re selling a fixer-upper, it’s worth a day’s work of mowing, pulling weeds & cleaning up the exterior of the home.
Financial Documentation Ready
Get ahead of the buyers and get your financial docs in order. Investors don’t look at properties like your everyday home buyer and they don’t need to “fall in love” with the property. The beauty of selling to investors is that the property either works from an investing standpoint or it doesn’t. There isn’t much room for gray areas. Have all financial documentation prepared, including profit and loss statements, rent rolls, and tax records. Being transparent and organized will aid in the sales process.
Tenant Considerations & Property Management
If the property is tenant-occupied, address how the sale will affect tenants. Mention the property’s current lease & have a copy handy for the buyer to review. When selling investment properties, don’t forget to discuss property management (if professionally managed) and if the services can help facilitate a smooth transition to the new owner.
Set the Price
While pricing isn’t everything, it’s 90% of the battle in securing an efficient sale. Selling for maximum profits is as much of an art as it is science. Begin by researching comparable properties in your area and considering current market trends. By proactively determining a competitive yet flexible asking price, you can attract serious buyers who recognize the value and investment potential of your property.
Be sure to consider your cap rate, cash-on-cash & other financial ratios to ensure that you’re offering an exciting opportunity for other investors.
How Much is Your Property Worth?
