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Determine Key Financial Factors


  1. Identify Your Motivation for Selling

  2. Marketability Factors

  3. Determine Key Financial Factors

  4. Work With An Advisor

  5. Establish a Selling Timeline

  6. Develop a Selling Strategy

  7. Contact us to begin the process


Determine the price range that you are comfortable with and that is reasonable for you to sell your income property. For example, if you purchased your investment for $500,000 within the last five years and you put $75,000 into renovations your equity in your home is now $575,000. Is this acceptable to you? Or do you expect to sell your home for over $800,000? Of course we all want to sell for the highest price possible but you must be clear in you mind what is the lowest number you will accept.

 

There are a few things you should do to determine a marketable price:

 

The Cost of Selling


Calculate your selling costs (brokers' commissions, title fees, taxes, etc.) and loan payoffs (mortgage, termination fees, etc.) to arrive at a net figure. This figure is the anticipated sum of money that you will receive at closing.

 

Your Next Investment


Establish a plan to put the proceeds from your income property into another investment vehicle. Try to keep your money working for you at all times. If you need periodic access to large sums of capital, invest in short-term guaranteed interest products. Establish a line of credit if necessary. Do you have a 1031 Exchange Facilitator identified if you are doing a 1031?

 

Your Equity


Spend time with your accountant or financial planner to determine how to make your money work best for you. Determine if you are prepared to offer a owner-carry loan to a buyer or if you will need all of your available equity in the property. For example, you may not want to realize all of your money in one lump sum upon selling to avoid potential tax implications.

 

Mortgage Issues


If you have purchased another property, investigate the possibility of transferring your existing mortgage to the new property. Or it may be prudent to blend mortgage rates (depending on how favorable lending rates are at the time). Discuss your options with your lender.

 

The Financial Story


Prepare all the appropriate financial statements that will be requested by potential purchasers. This information is often more important to a potential buyer than the property itself. Your Southern California income property advisor should be  able to assist you in preparing and including proper financial statements in your feature sheets.

 

Selling price


Establish a sales price for your property that you feel is representative of fair market value, but be aware that overpricing a property often aids in selling other lower priced ones that are comparable.



Factors that DO NOT affect your property's value:

  • What you paid when you bought (or built) your house

  • The cash proceeds you want or need from the sale

  • What any real estate professional says your property is worth

 

Buyers dictate the best price obtainable for your property by engaging in comparison-shopping. A buyer will not pay more for one property than he or she would have to pay for another similar property.

To best determine your selling price you should have an experienced income property agent who knows the market for your property type complete a competitive market evaluation.

 

This appraisal will show what buyers are willing to pay in today's market by:

  • Demonstrating what buyers have actually paid recently for similar properties

  • Showing what buyers have not been willing to pay under current market conditions

  • Focusing on other properties which are now competing for buyers attention

 

A competitive market analysis gives you a solid foundation for the realistic pricing of your property.

For Southern California Real Estate, The OC Coastal Group is your best source for up to date market information on income properties. Call today for a market evaluation of your property. 

 

next:  Work With An Advisor

 


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Information throughout this site is deemed reliable but not guaranteed for Aliso Viejo, Capistrano Beach, Corona Del Mar, Dana Point, Laguna Beach, Laguna Niguel, Monarch Beach, San Juan Capistrano and Newport Coast properties.  By submitting your contact information on any form on this site,  you are consenting for The OC Coastal Group  to contact you even if your name is on the Federal "Do Not Call List".

The information throughout this site is deemed reliable but not guaranteed and is for the consumer’s personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumer may be interested in purchasing. Any information relating to real estate for sale referenced on this web site comes from the Internet Data Exchange (IDX) program of the SoCalMLS®. This web site may reference real estate listing(s) and / or closed sales held by a brokerage firm other than the broker and/or agent who owns this web site. This site and it's contents are copyrighted and may not be copied, reproduced or distributed without the express written consent of The OC Coastal Group.

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The OC Coastal Group are realtor specialists in Dana Point real estate, Monarch Beach real estate, Laguna Beach real estate, Laguna Niguel real estate, San Juan Capistrano real estate, San Clemente real estate and Aliso Viejo real estate in Coastal Orange County, California & surrounding South Orange County, CA realty including coastal golf course homes, beach properties, gated communities, 1031 exchanges, investment opportunities, income properties, ocean view estates, houses, condos & townhomes.


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