Preparing To Sell
Marketing an investment property requires a different approach than a traditional, owner occupied home. The preparation to sell multi-unit housing, apartment buildings and commercial real estate is unique as well.
Here are a few tips to get you started:
The Numbers: Experienced investors will evaluate your property based on many different characteristics; such as projected return-on-investment, CAP rate, ease of management and maintenance, and vacancy factor. To assist with this, we will prepare a marketing package that provides this information to prospective buyers and HIGHLIGHTS your particular property’s strengths. In preparation to sell, you will need to collect records of your rental income, tenant payment histories, utility costs, maintenance cost, vacancies, repairs and other financial documents related to the property.
The property: In many cases, potential buyers will drive past the property and then submit offers that are subject to interior inspection (to avoid inconveniencing tenants when unnecessary). Keeping the exterior of your property clean, free of clutter, well landscaped and in good repair is strongly recommended. That will be the potential buyer’s first impression of how you maintain the property.
The tenants: Tenets often have different reactions to a potential sale. Some have concerns of rents being raised, poor future management, or being disturbed by walk-throughs and inspections. Some have no concerns at all. If you expect your tenants to be concerned with the potential sale it may be advisable to reassure them their lease will transfer, terms will be honored, you will only allow pre-qualified, serious buyers to view the property, and that you will give them adequate notice before any inspections. If you prefer not to alert your tenants to the potential sale until you have an accepted offer, we have the option of listing the property with those terms. We will work around your concern for the tenants’ needs to ensure the sale is a pleasant experience for all parties.
Preparing your property to be sold is worth the effort. Every property is unique and will have its own strengths and challenges. By taking the steps listed above, you will give our team the ability to showcase your property’s full potential and sell it for top dollar.
The founders of Capstone Realty, Adam & Emily Manville, have personally purchased, owned, managed, and sold investment property for over 10 years. We are very aware of what investors are looking for and how to market your property to its full advantage.
