Now that
you've made the decision to sell, have an understanding of your
financial picture, engaged a well-informed REALTOR® and
established your timeline you are ready to put together your
selling plan:
Develop a focused marketing plan with your Investment property
advisor. Identify the various means by which your property will
be exposed to the buying public. Work with your agent to
identify the key selling features of your income property and
make them prominent in all of your marketing materials.
Discuss open houses for both local agents and the general public
but consider how these will impact your tenants.
Your REALTOR® will have a comprehensive marketing plan that
includes a print plan, an agent-to-agent plan and a internet
marketing plan.
Your
Tenants
Talk
to your tenants and determine how best to allow for showings.
Often owners do not tell their tenants that they are selling.
This is not recommended. It makes it awkward for everyone
involved in the process, especially buyer's agents and potential
buyers. Also, if your tenants request notification prior to
showings be sure to give it to them. If an agent books an
appointment to show your property 24 hours in advance, and then
arrives at the property to find the tenant had not been told
about the showing it creates confusion and often tenants will
refuse to let the property be shown.
Presenting
Your Property
Ensure that your property is clean and adequately prepared to be
seen by potential purchasers. Fix up the little things
(scratched paint, loose moldings, etc.) that can be attended to
quickly and easily. Consider other improvements and determine if
investing some money into renovations could bring you a higher
sale price. Have your agent prepare a feature sheet of your
property and make sure it includes a financial analysis of your
property. Be sure to include information on the number of units,
the income for each and the taxes and utilities for the
property. Investor buyers need this information. In fact, to an
investor this information may be more important that whether the
kitchens are new or the floors have been refinished. Know who
the target buyer is for your property and ask yourself what
would they want to know.
Your
Bottom Line
Determine your initial asking price but know in your mind your
bottom line figure and make it clear to your agent. Discuss
future price reductions and set a timeline for implementing
them, if necessary. It is important that both you and your agent
are very clear on your financial requirements. Be aware of the
financial implications of the sale. Spend some time discussing
your plans with your accountant or financial advisor.
Receiving
Offers
Once
your listing hits the market, be prepared to accept an offer
quickly when it meets your criteria. There may be a hesitancy to
wait and see if you receive more or better offers. You will
ultimately have to decide what to do but it is not necessarily
safe to assume that there will be a better offer in the future.
If you have outlined your goals and needs you will be better
informed whether to accept or reject any offers.
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