The purpose of any real estate investment property is to sell it and make a profit at some stage, whether it is immediately after renovation or sometime later after it has been rented out for a while.
Whatever the time lapse between acquiring the property and selling it you need to start thinking about resale from the very beginning. Seasoned investors know this all too well and they often factor in resale in their decision making processes.
Selling immediately after renovation
If you are selling your real estate investment property immediately after renovation then the key is to make only the changes that are absolutely necessary. Avoid making changes to the home simply because you would like to.
Think very careful about the practicality of the changes and whether doing the work would increase the property’s resale value; if it doesn’t then don’t do it.
Consider carefully the fixtures and fittings you are placing in your real estate investment property. The fixtures and fittings you would like to see in your own home are not the ones you should have in your investment property unless it is in a very upmarket area and you know you will recoup the cost when you sell.
Just make sure any work done is completed to a high standard and any guarantees are provided in writing. Walk around checking everything and creating a snagging list before the workmen have gone and you have made final payment on the work. Make sure the property is clean and that you have taken all practical steps to secure a quick sale as you don’t want your investment sitting around for too long. After all, time is money.
Don’t get carried away by your emotions. Many rookie investors make this mistake and it costs them dearly.
Selling after a period of renting out your property
If you are selling your real estate investment property after a period of renting it out then there are a few more things you need to take into consideration when getting your property ready for sale.
One of the most important things to think about and make a definite decision on is what to do about your current tenants, if you have some. Do you give them notice and then start preparation of the property for the market or do you sell the property as is with tenants in situ. There is no right or wrong answer as both have their advantages.
Selling a real estate investment with a tenant in situ particularly if they have at least 6 months on their lease and are willing to stay; means that the potential buyer can start counting the money as they do not have to spend time and money looking for a tenant.
If you have chosen to get rid of the tenant and do any necessary work to upgrade the property this can also be a good option as the potential buyer does not necessarily have to be an investor but any person just looking for a home. This means you have a wider market from which to find a potential buyer.
Selling property is a cut throat business. Don’t make mistakes that will give your competitors your buyer. Make sure you have done everything to secure that all important sale. Make smart decisions about where and what changes will add the most value to your investment. Visiting a few houses that are competing with yours to see what changes they have done is also a good idea.
Look at the tips in this article and implement as many as you can if not all of them. Now your real estate investment is ready for sale, open your doors to potential buyers and you can concentrate on your next project.