Selling Investment Property How to Know the Time Has Come for Selling Your Investment Property by Yoana Leusin November 16, 2017January 24, 2022 by Yoana Leusin November 16, 2017January 24, 2022 Are you wondering when the time has come for selling your investment property? This is a tough real estate question. However, there are some real estate investing tips to help you in making this decision. There are many reasons for selling your investment property. Selling a property, nevertheless, is not always the best investment decision. The reason behind this is that there are various things to take into consideration before making this step. Learn more on the topic and make the best out of selling your investment property in order to make your real estate investing business as profitable as possible. Related: How to Make Bank When Selling an Investment Property What are the reasons to put your investment property for sale? The job of a real estate investor is challenging. You should always make the right decision when it comes to your investment property. Sometimes, this may include the need of selling your property. Here are some of the most common motives behind this choice: #1 Selling Your Investment Property Was Your Plan All Along Many real estate investors buy properties with the idea of selling them afterwards, and this is one of the main reasons behind selling your investment property. Putting your investment property for sale, though, can hide some hazards. #2 The Property Requires Too Much Maintenance Another common reason to be selling your investment property is if it requires too much maintenance. This can refer to both time as well as money you put into the investment property. For instance, when buying a rental property, the real estate investor should consider what the expenses are associated with the place such as property taxes, but also things that need to be repaired. Additionally, when giving a property for rent, there is always the risk of investing more money and time in fixing and repairing the rental property than initially planned. Related: You Have a Rental Property f or Sale: What Should You Do? #3 The Investment Property Is Not Performing Well Or Is Causing Negative Cash Flow Every real estate investor aims to get higher return on investment, which means to have a bigger positive cash flow from the investment he/she is making. However, this is not always the case. There are many factors that can result in investment properties that do just break even or, even worse, result in a negative cash flow. When such a situation has been monitored for a long period of time and does not change, selling your investment property may be the right decision. #4 Want to Grow Your Real Estate Investment Business Another possible reason for selling your investment property is freeing up capital. Maybe you want to expand your real estate investment business and you need more capital to do so. Real estate investing requires the buying as well as the selling of properties in order to grow and prosper in the field. Things to Consider Before Selling Your Investment Property #1 Capital Gains Tax on Property Capital gain tax on sale of property represents the tax a real estate investor has to pay on the profit made by selling a capital asset. Such an asset is, for instance, an investment property. The tax on investment property sale depends on many factors. For example, it is defined by the type of the real estate property as well as the profit the real estate investor has made. There are online calculators, which may help you in checking what the capital gain tax would be in advance. You can also find possible ways to avoid paying such a tax. It is important to note that the regulations vary in different countries and different states. #2 The Current Market- Buyer’s market or seller’s market In order to generate high profit and make the best deal while selling your investment property, you should consider the type of real estate market at the moment. There are two types of real estate markets you should take in mind. The first one is called buyer’s market, which means that the supply of houses on the real estate market is higher than the demand. Therefore, real estate investors are selling properties at lower prices because of the big competition. Thus, this type of real estate market favors home buyers. The second type of market is the so called seller’s market. This means that there is a shortage in the supply of houses and a high demand. Therefore,real estate investors increase the prices of their properties due to the big interest and the lack of competition. This type of real estate market is in favor of home sellers. Consequently, it is better to sell your investment property when the real estate market turns into a seller’s market. #3 Setting Up the Property Price This is another important step in selling your investment property successfully. You should set up the property price mainly based on the property type, its features, location, actual cost, etc. However, it is also important to define the type of the real estate market at the moment and choose a competitive property price. In this way you increase the chances of selling the property faster. Related: How to Set the Right Rent Price for Your Investment Property How to Sell Your Investment Property Fast Many people are asking themselves the real estate question: “How to sell my house fast?” Here are some tips you may find useful: Make use of the internet and be creative The internet offers a great opportunity of promoting your investment property for free. Make use of real estate investing forums, groups, and other online platforms to promote your investment property. In this way you are able to reach many home buyers at a minimum cost. Furthermore, it is essential to make people interested in the house you are offering. You can do so by showing them something attractive and memorable as an advert. Make a great first impression Many home buyers decide whether or not they are interested in a property based on what they see first at your open house. It is a good idea to clean your real estate property for sale as well as to decorate it. Do not forget to maintain the driveway and the garden. Moreover, when searching for a house to buy, people are usually imagining what it would be like to live in the given property. It is advisable to remove all personal items and make the place look neutral. Sell your investment property to real estate investors Selling your property to real estate investors has its perks. For instance, you can sell the property faster, you do not need to renovate or upgrade anything, and most of the time you have the opportunity to receive the payment in cash. However, be careful to whom you are selling. Property sellers who sell to real estate investors are more likely to sell the property at a lower price. Of course, selling your investment property on the real estate market is not black-and-white, and there is no formula for sure success in the real estate investing business. Yet, you can achieve your best as a real estate investor by putting effort and researching each possible variable before putting your property for sale. When it comes to an easily accessible educational information, Mashvisor offers hundreds of blogs that can guide you along the way. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL Cash FlowInvestment PortfolioInvestor ToolsMarket AnalysisProperty ValuationRental Management 0 FacebookTwitterGoogle +PinterestLinkedin Yoana Leusin Yoana is an experienced content writer with a BA in leisure studies who enjoys giving tips to beginner real estate investors. Previous Post Making Money in Real Estate: Beginner-Level Investments Next Post Where Should You Invest in the Boston Real Estate Market? Related Posts The Key Steps To Selling A House As Is In Texas – How To Make A Smart Sale? 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