Selling real estate properties is not a simple task. Further, the trade of such investments, typically, takes long periods of time, varying from couple of weeks to months, sometimes years. Thus, some real estate investors prefer hiring a real estate agent to assist them in closing the best real estate deals possible. However, using a real estate agent is not a must. The real estate investor can sell the rental home for sale without the help of a real estate agent, when following these simple steps:
#1 Considering Why You Want to Sell Your Rental Home for Sale
A real estate investor might be willing to place his/her rental home for sale on the market for many different reasons. For instance, the real estate investor could have been waiting for the best opportunity to sell his/her property. Another possible reason is that the rental property generates negative cash flow, hence, the realtor is willing to exclude it from his/her real estate investment portfolio. It is important to consider the reason to put your rental home for sale. This might be essential in defining the best time frame for actually closing the deal.
#2 Having in Mind Capital Gains Taxes
Unlike selling your own house, the money received from a rental home for sale are taxable. Therefore, it is extremely important to know what the potential taxes on the sale are. For instance, if the landlord claimed depreciation of the rental home for sale and used it against the tax bills in years before, the property seller might be facing a higher taxation on the income from selling the investment. Needless to say, in order to sell your rental property in the best way possible, you would need to consider the capital gains taxes you will need to pay. This is also important in deciding the asked price for selling the real estate investment.
#3 Studying the Local Laws and Regulations
One of the key things to understand when selling is how local landlord laws and regulations will affect your rental home for sale. The laws and regulations vary from place to place. Therefore, it is important to examine the specific rules that apply to your location. There might be different requirements for the property seller and the property buyer. Moreover, when it comes to a rental home for sale, you should not forget about your current tenants. For instance, it is important to know how much time in advance you need to let your tenants know that the property is being placed for sale on the market. Examining the local laws and regulations prior to selling your investment might save you many unpleasant surprises along the way of closing the best real estate deal.
#4 Thinking About Your Current Tenants
The tenants play an important role when putting your rental home for sale. As previously mentioned, the landlord should consider them when selling the investment property. In some places, the laws for selling a rental property obliges the property seller to first ask the current tenants of the investment property if they are willing to buy it. Even if that is not the case, however, offering the rental home for sale to the current occupants might save the landlord a lot of time and effort as well as money. This tactic is extremely useful when being in a hurry to sell the real estate property. Nevertheless, you need to be careful if you have the current tenants as the property buyer. This is because they are familiar with all the downsides of the rental property and might insist on lowering the selling price.
#5 Exploring the Current State of the Market: Buyer’s Market or Seller’s Market
Why does it matter if it is a buyer’s market or a seller’s market? Well, when the real estate market is in the condition of a buyer’s market, this means that there is more demand than supply for buying properties. Hence, property prices go higher and the housing market favors the property seller. When in state of a seller’s market, the supply of real estate properties for sale is higher than the demand. Consequently, property prices go lower and favor the property buyer. Selling your rental home for sale when the market favors the sellers is the best possible way for trading your real estate investment.
#6 Conducting Comparative Market Analysis
Comparative market analysis represents the evaluation of real estate comps (similar in characteristics, recently sold houses) that are near your rental property to be sold. Conducting comparative market analysis is extremely useful for establishing the current market value of your rental home for sale. It is important to use real estate comps, which have already been sold as the current listings are estimated values influenced by the current state of the real estate market.
#7 Setting Up the Price
Setting up the correct price is undoubtedly a crucial step in selling your rental property in the best way possible. In order to set up the price, consider the appreciation of the house. The appreciation is the increase in the value of your investment property over time. It is important to take in mind the appreciation of your rental property as in this way you will be able to make more money out of the real estate deal. Consider the comparative market analysis as well. It is important to establish the price to be neither too high, nor too low. In this way you will sell your rental property fast and make profit out of it.
#8 Marketing Your Investment Property
Marketing your investment property is another step in assuring you sell your rental property in the best way. When exploring ways of marketing your investment property, consider the free online platforms where you can place your adverts. Another idea is putting signs in your area as well as placing an advert in the local newspaper. It would be great if you can create an entertaining and engaging advertisement of your rental home for sale in order to attract potential buyers.
If you are interested in learning more useful tips and information about various real estate topics, keep reading on Mashvisor!