Thinking about selling an investment property? As with any business endeavor, having an exit plan in place for your real estate investment is an essential ingredient to success. The exit strategy for a property is best laid out at the time of purchase and all the while keeping an eye on the market and making adjustments to this plan as needed. Keep in mind that there comes a point in nearly every real estate investor’s journey where one needs to sell an investment property. Perhaps you are retiring and wish to walk away with great returns. Other times, unexpected life circumstances may motivate you to cash out early. Either way, the process of selling a property can be stressful and emotions can often could your judgment. For this reason, a thoughtfully planned exit strategy you have drawn up in advance will enable you to address tough situations objectively.
If you are planning to sell an investment property and do not have an exit strategy in place, don’t panic. Seasoned real estate investors like SCAL Real Estate LLC know some of the best ways to sell real estate. Here are some selling pointers to consider when making your exit strategy in Portland:
- Avoid holding costs
- The faster you sell, the more you will save
- A direct buyer will help you sell fast
Holding Costs Add Up Fast
Avoiding holding costs is a selling secret used by real estate investors in Portland that many homeowners often overlook. Holding costs are monthly ongoing expenses that occurs due to property ownership, which includes insurance, property tax, and utilities. When you hold a property for way longer than expected, these costs can sneak up on you and may add up tens of thousands of dollars. In the event that you are not able to remain in your existing house during sale – for instance, you have to relocate out of town – you are now responsible for the ongoing bills for that property as well as your new residence’s expenses. In other words, you are carrying multiple holding costs. Not to mention, you may also have the headache of traveling back and forth to check up on your existing home from time to time. If it becomes too difficult to travel as often as you want, you may have to start paying someone else to maintain the property.
Understanding holding costs is important. Generally speaking, and under normal circumstances, the average time it takes to sell a home in Portland is around two months. Some homes take longer than that and with each month that passes, the holding costs will accumulate and start eating into your potential proceeds on the sale. You wouldn’t want to be in this position.
The Faster You Sell, the More You Will Save
When selling a house, it is no secret that everyone’s goal to simply make the most money while also attract buyers and sell quickly. One key point to remember is figuring out the right asking price to supercharge a home sale. Historical trend shows that houses that don’t move quickly tend to sell for less than asking price as the listing becomes stale and buyers have more reason to lowball.
One of the worse nightmares is when sellers realize that their property has been sitting in the market for longer than expected and as the clock keeps ticking, pressure and panic builds. They take the necessary corrective action by lowing the price to stimulate interest, however, it might be too late. Buyers are usually turned off by the constant changing of prices and they start to ask questions if there is something wrong with the house.
You should be sensible when pricing your home. You don’t want to list your home too low that you are leaving money on the table. You also don’t want to scare off buyers by setting an unrealistically high price as homes that are overpriced tend to stay longer on the market. It is therefore critical to price your house competitively from the beginning, appropriate for their value and local market conditions. Remember that that ensuring a quick sale not only helps to optimize your profit, it also means you get to move on with your life.
A Direct Buyer Will Help You Sell Fast
Experienced real estate investors understand all too well most people simply want to get out of their houses fast with minimal hassles. Direct buyers like SCAL Real Estate LLC pay in cash, thereby avoiding the inconvenience and uncertainty of working with a traditional home-selling process. With traditional listing, there are numerous possible issues that can derail the transaction – the buyer’s mortgage application is declined, the home gets appraised lower than the sale price, major issues surface during home inspection, buyers get cold feet at the last minute, etc. To have a deal fall through can be heartbreaking and quite expensive, shattering plans you may have already made.
Unlike traditional sales brokered through realtors, homebuying companies like SCAL Real Estate LLC pay cash for as-is properties. There will be no deal falling through and none of the expenses of dealing with a real estate agent come off the top at closing either. Furthermore, instead of waiting for a buyer that needs to arrange their financing, you can depend on direct buyers to provide a quick closing, in some cases in as little as seven days. Direct buyers often have a network of contacts that are always buying and selling properties. By building a strong relationship with a professional in this area of real estate, wise investors can quickly sell when the timing is right. Working with a direct buyer is one of the best kept selling secrets used by real estate investors in Portland.
Ready to learn more selling secrets used by real estate investors in Portland? At SCAL Real Estate LLC, our mission is to save you valuable time and resources. Working with SCAL Real Estate LLC as your team means we will do all of the work to help you build your real estate portfolio while your job is to enjoy your earnings! There is no absolutely obligation to sell if you request an offer with us. Find out just how easy selling your investment property can be by calling us at (971) 238-2255 or send us a message today!