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Selling an investment property is often associated with stress and anxiety. Whether it’s a rental or a new off-the-plan build, there is a constant battle against the clock as interest rate repayments and other holding costs accumulate while you attempt to find a willing buyer and maximize your return on investment.
A well planned sales campaign prior to listing the property on the market is absolutely essential to ensuring the best sales result in the shortest time possible. Statistically, the longer a property stays listed on the market, the more likely that the vendor will be forced to discount the original asking price.
Here are 5 essential tips to sell an investment property for the highest possible profit.
1. Calculate the property market value
Initially, you will need to find out the property market value. It is advisable to keep monitoring the local real estate market at least 3 or 4 months or longer prior to launching your sales campaign. This will assist in getting a good idea of recent sale prices for similar homes, as well as clearance rates in the area. Contacting a real estate agent or mortgage broker can also be a very effective way to get hold of some sales results date or to organize a professional property appraisal.
When making the decision on setting your target sales price, it is also important to factor in the various expenses and liabilities involved in the sales process such as the agent’s commission, capital gains tax, marketing or advertising costs, remodeling expenses and other potential discharge and title transfer costs that may apply in your locale.
2. Sell at the right time of the year
While properties are sold throughout the year, certain times of the season may be more lucrative for launching your sales campaign. It is important to take into account any public holidays that may be taking place.
Listing your property a week or two prior before the commencement or after the conclusion of a major holiday should be avoided as there is reduced activity in the buyer market. School holidays and summer time periods can also see a drop in demand while many people are away on vacation.
If selling your property via an auction, it is also a good idea to consider the seasonal weather since the auction may be attended by fewer people during an especially cold or wet time of the year.
3. Select a reputed real estate agent
Selecting a reputed and experienced sales agent can have a great impact on your entire selling experience. It is a good idea to monitor local property sales in your area to determine the most active and prolific agencies as they will be very familiar with the local buyer profiles, demographics, demand and surrounding property valuations.
A reputed agent can help you get better returns for your investment. They can also provide beneficial pieces of advice on whether you must go for an auction or a private sale to maximize your sale profits.
Don’t be afraid to speak with a few different agents prior to engaging their services and enquire about their sales commissions, sales campaign recommendations and marketing and advertising inclusions that the agent may offer in their package.
4. Professional home staging
Professional staging of the property prior to open house inspections will go a long way to raise buyer interest and increase the likelihood of having more bidders at the auction or private offers.
This process involves hiring an interior design company that will professionally appoint furnishing and styling accessories throughout the dwelling and have the pieces delivered and arranged for the duration of the sales campaign. It is important to research the different types of companies who offer this services since the furniture rental costs may vary by thousands of dollars, depending on the quantity and quality of furnishings and accessories that the designers feature in their collections.
Home staging should be done prior to taking the photography of the property in order to get the full benefit of showing of beautifully styled interiors in your sales brochures and web listings.
5. Hire a 3D rendering studio to create stunning visuals
For these who are selling their investment property off-the-plan, hiring an architectural visualization studio like Cleanpix Graphics to create some life-like exterior and interior 3d visualisations is a great marketing strategy. High quality artist’s impressions will show off the best features of your property before it is even built and will generate buyer interest by conveying the lifestyle that would come from their purchase. An added benefit of creating the computer generated visuals is the inclusion of virtual staging and landscaping that is normally included as part of the design package.
Also read: How To Reduce Risks Associated With Your Investment Property
Image source: elements.envato.com
