How to sell your investment property for maximum profit!
Selling an investment property can be complicated and many times it is done incorrectly if you're trying to maximize profits!
Most investor's knee jerk reaction is that they want to sell to another investor. This is not wise if your goal is to make as much money as possible, but can be the right direction to go in if you want the transaction to be as easy as possible. There's not a wrong way to do it, it just depends on your goals.
For today's article we'll come from the direction of maximizing profits. You want to do a few things when trying to maximize profits that are the same as when you're selling a personal residence.
- Fix any glaring issues up front. It's worth the money for most small repairs, consult with an experienced agent to know what's worth it and what's not.
- If you have any doubts about paint, paint the place. Paint is the cheapest and easiest way to make a property look completely different.
- No matter what take great pictures. You or your Realtor need to have a professional take pictures and edit them to really make your listing shine. Realtors with an iPhone are not professional photographers. My team knows this, which is why we pay for professional photography on every listing. Even if the place needs work the pictures are worth it.
- Consider staging. Even virtual staging can go a long way when attracting buyers to your property.
Yes, the market is hot. Yes, it's easy to sell a house. But why wouldn't you do your absolute best to make sure that you attracted the best and most motivated buyer to see a listing? Spend a little money to make a lot of money. An experienced agent is worth their weight in gold when you're looking to market your home and make the most money. Personally I've made hundreds of thousands by buying listings that weren't marketed well, had poor pictures and had lots of small menial repairs that should have been done.
When you're selling an investment property there are a few other ways to make sure you stand out.
- Allow showings. So many investment property sales only allow showings after an accepted contract. You might as well price your property 10% lower if you're going to do this. Properties that can't be viewed always go for less, no matter what.
- Leave a vacant unit if at all possible. If you can't do this let the leases go month to month if you know you're going to sell in the near future. With residential property (1-4 units) your highest paying buyers are going to be owner occupants or at least want the flexibility to ask the tenants to leave. This advice does not apply to commercial multifamily (5+ units), assuming your rents are at market.
- Raise the rents. Ideally you keep them month to month but don't expect the buyer to know what the rents could be. Find out what market rent is and make sure you're there. This is why having an investor agent is very helpful. Properties that are rented at market or above market sell for more.
If you own investment property in Minneapolis - Saint Paul, MN or Austin and San Antonio areas in Texas reach out to us! We'd love to help you find out the value of your property or help you sell them! We can give a cash as-is offer and also let you know what we could get you on the market with our full marketing package. We're a team of investor agents and know how to handle sales of investment property.