Real estate property selling can be one of the most profitable things an investor can do–especially when done right. However, there is a strategy that’s needed to sell properties you own to gain the maximum profit. Just because you are selling at a competitive price doesn’t necessarily mean that you will get the best offers in the market. Many sellers can make mistakes that cost them lose money compared to their initial investment in the property.
Real estate broker Michelle Kam knows these blunders all-too-well: Being in the field of property investments for more than ten years, she has given valuable advice to new and senior investors alike. In this article, Michelle provides insights into how sellers can be wise in their strategies to put out properties in the market.
Consider property selling costs
It is easy to assume that selling your property means inward cash flow right away. This thought is misleading as selling can also mean having costs within the process. Michelle explains the usual costs when trying to put your property in the real estate market:
- Commissions: If you are working with an agent, there will be a commission once you close a deal with a buyer.
- Staging: To make your selling efforts competitive, proper staging of your home or commercial unit is essential. This can involve some renovations or the purchase of furnishings as needed.
- Closing costs: As with buying property, there are also closing costs that one must pay after selling. These can include the tax, title transfers, and documentation costs on closing day.
Before getting worked up about your earnings for a property sold, it can be ideal to have a dose of a reality check with the expenses mentioned above.
Selling a property during a negative equity status
There are certain times in the market where properties go down in value. If you still cover mortgage expenses on a home or commercial unit, it is best to sell the property with an increased valuation. Although you cannot predict economic downturns, you can find ways to increase your property’s value through repairs, renovations, or adding valuable assets such as built-in equipment.
It may not be a good idea to sell your property when you are experiencing negative equity since you may end up having difficulties getting your money’s worth or paying off the remaining balance–if that is your goal.
Going independent on your selling ventures
According to Michelle Kam, many investors hesitate to sell their first property with a real estate agent because of the commission costs. However, those who work with an agent get an average of $20,000 more than people who try to sell their properties by themselves. This statistic only shows for home properties, and there could also be a large disparity on commercial units. The benefits of getting a real estate agent involved in your selling are:
- Valuable referrals: Need a maintenance team, staging team, and other people to complete your property selling goal? A real estate agent can give you valuable referrals to speed up the process.
- Full guidance: Real estate agents are already experts in the selling process–after all, it’s what they do. You can get advice on what documents to prepare and what steps you need to take until the final transaction.
- Less stress and effort: The networks that real estate agents have are valuable. If you don’t have well-known marketplaces where you can sell your property for a good price, it is best to rely on an expert to put your listing out there.
Not making an effort with your listing photos
In today’s digital world, listing photos are everything when selling a property in many online marketplaces. It can help your property get noticed by more potential buyers, which means more offers and better negotiations.
You can try to improve your listing photos by having professional lighting set in place, avoiding clutter, and hiring a classic home staging service. To take it up a notch, you can also ask a real estate photographer to help you in creating clean and light photos of your property. Aside from 2-D photos, some services can help re-create a 3-D tour of your home for a more interesting experience on the buyer’s end.
Selling With A Strategy In Mind
Michelle explains that the most important thing you need to remember when selling a property is to have the right strategies in place. Having a property selling team, getting the best visual materials, and understanding your units’ valuation can lead you towards the investment profits you desire.