When you think about selling your home as a landlord there are a few things you need to keep in mind for you to have a successful transaction as a landlord.
One of the first things you want to do is figure out if it makes good financial sense to even move forward with selling your home.
If you are having issues making your mortgage payment? If you are having issues keeping up with demanding tenants. If you are finding yourself dreading the late-night calls then maybe it is time that you consider selling.
Being a landlord can be very rewarding. But there are sometimes when being a landlord can cause you to have a major headache. You got to ask yourself these hard question:
Does it make sense to me to keep dealing with tenants, I don’t want to deal with?
This is the main question right now. Do you still want to take the tenant’s phone calls? Do you still want to deal with doing the eviction process?
These are all things to consider when dealing with collecting rents. Let’s not forget about the late-night phone calls asking to repair a broken pipe.
These are all the things to consider when dealing with being a Landlord and collecting rents and having to make the repairs. One thing you want to keep in mind when dealing with rentals.
If you do not have an escrow account for repairs and you find yourself floating money from your daily expenses then it might be something you might want to think about doing.
Creating an escrow account to escrow some of the cash flow from the cash to make necessary repairs on the property.
If you find yourself unable to pay for your bills and you find yourself taking some of your money from your daily income to pay on the repairs of the rental then you might want to think about liquidating the asset.
So these are some things to keep in mind. If you’re always frustrated, If you are always not liking how you feel waking up complaining about fixing that toilet then it’s a good indication that you might need to sell the asset.
You have decided to sell the rental property?
One thing you want to ask yourself, did you offer the tenant a first right of refusal? This gives the tenant the first right to buy the rental property.
This can work in your favor because it could save you time when trying to market the property for sale.
If the tenant can qualify for the loan you can then work to try to close on the rental property. Do keep in mind that if the property needs a lot of work.
Or if the property has a lot of deferred maintenance then it will not qualify for FHA financing or Conventional financing.
If the tenant is unable to qualify for a loan then you will need to prepare the property to be put on the market.
Put your house on the market.
This is where you are right now. To get started you will need to make sure you let the tenant(s) know that the home is going to be placed on the market for sale.
You must go according to what the lease agreement says about giving notices to tenants.
There should be a paragraph that tells you the days you need to notify tenant(s) when selling the property. The reason you give the tenant(s) proper notice, is because you want to give the tenant(s) a chance to find somewhere else to live.
Some Landlords will sell the property without the tenant(s) knowing and the tenant(s) end up finding out the moment that they receive a new letter from the new owner. Allow the tenant(s) an opportunity to find somewhere to go.
Establish Some Type Of Agreement With Tenant(s) To Keep The Property Clean and Allow Showings.
Once you have given proper notice to the tenant that you are going to sell the home. You can try to establish some type of agreement with the tenant(s) about keeping the property clean inside and allowing the property to be shown.
This can be difficult sometimes but no one is in the business of helping you to get your property sold but you and a good Real Estate Agent.
So if you are having issues with the tenant(s) unwillingness to keep the property clean you might have to wait until the tenant exits the property to gain full access to the property.
Should You Sell “As Is” Or Fix The Property Up?
This is going to depend on whether or not you have the necessary funds to make all necessary repairs. If the funds are available then you can work to repair the property and add value to the property. Remember, new buyers of today want things very nice. Make the kitchen and the bathrooms a focus point.
To qualify for FHA and Conventional financing the home must be in average condition. If you have missing shingles, holes in the walls, torn carpet, missing appliances, major foundation work then you only be able to sell to cash buyers or investors.
Typically, an investor is looking to make .70 cents on the dollar. So if you want top value then you will need to fix the property up.
If you know you don’t have the necessary funds available you can still sell the home “as is” but it will need to be evaluated to see which would be the best method to go. Also keep in mind that if you are needing an offer fast on your home, I do have investors who are ready to make an offer to you.
Typically you can have a response back within 48 hours of the time you send in your request. So contact me and I will be happy to assist in getting an offer on your property.
Make repairs before showing your property to potential buyers.
If you are going to make repairs to the property. It’s better to make the repairs before the home is ready to be shown. Some sellers will try to repair the home after the buyers have seen it. Typically, you want to remember that the first impression is the best.
Your goal is to give that wow factor period. If you don’t want to do that the home can still sell. But, it’s always a good rule of thumb to try to create a wow factor. The goal would be to repair the home and paint the home before the for-sale sign is placed. You can, however, sign a Listing Agreement with a Real Estate Agent. Once this agreement is signed you can prepare the home for sale by making the necessary repairs.
Some buyers love the idea of not having to do a lot of work to the home when moving into the home. This will make them more likely to buy your home because they won’t have to worry about getting their contractor involved later on.
Should I Stage My Home?
So you’ve been thinking about staging your home to sell, but are unsure if it’s worth the time and money. After all, many other things can be done before getting an agent involved like hiring a professional photographer or listing your property on Real Estate Sites like this one.
Staging is the process of making a home look attractive to prospective buyers. This includes clearing out clutter and furniture to highlight certain areas of the house. There are many benefits for landlords looking to sell their property quickly such as an increased number of showings, higher selling price, reduced time on the market, and more successful offers.
Staging a home can be a complicated process. You need to find the right pieces, decide where they should go, and make sure that everything is coordinated. It’s not easy to know if you’re getting it done correctly or not, so hiring professionals is often necessary for staging homes to get the best results possible for your investment property.
Real estate professionals are a valuable resource for landlords when it comes to listing their homes. This is because realtors have the knowledge and experience of what buyers want in a home, which can help them better market your property.
Do you have a property that is sitting vacant? If the answer to this question is yes, then it’s time to start thinking about listing your home with a Real Estate Agent. Homeowners are often reluctant to list their property with a real estate professional, but this reluctance can lead to lost opportunities and the inability to find the right buyer.
Properties that are listed by owners typically sell for less money because the home might go unnoticed in the market because Real Estate Agents can not see that you put your home up for sale. If you’re planning on listing your home in today’s market then it’s important to know what mistakes not to make so that you can avoid increase Days On Market because your house might not be seen or even go unnoticed in the market.
Conclusion
If you don’t want the hassle of dealing with tenants? Whether it’s because they’re noisy or just plain hard to deal with, dealing with renters can be challenging and time-consuming even when things are going well.
When there is an issue that needs attention like a leaky roof or broken appliance, getting someone out who will fix the problem quickly can sometimes be time-consuming. The solution for most people would be to call their real estate agent and put their house up for sale.
Remember, selling a rental property is a process and in this process, you want to make sure that you are receiving top dollar for your property. Whether you need to sell it fast or just want a fair price for your property, I can help. Contact me today and we’ll get started on finding that perfect buyer for you!