If you do, you’re not alone, especially given the current real estate market conditions in Denver. Today you have multiple options in selling your rental property. Focusing on how each method works is essential in determining how in the near future you sell your rental property and how much cash goes in your pocket.
Your options to sell your rental property, condo, or estate property:
*List your rental units on the market with a agent
*Sell your rental units Available By Owner (FSBO as it is commonly termed)
*Sell your rental units quickly, for cash to a real estate investor (individuals or investment groups)
All the previously listed ways to sell your rental units have some things in common which will help you sell quicker, manage expectations, and get the most beneficial price for your Denver rental property.
The sales proposition along with the condition of your rental units
First impressions count whenever a prospective buyer walks up to your rental units. A well-maintained rental property will be more appealing than a rental units which obviously needs a lot of repairs or seems neglected and out of date.
To turn lookers into buyers you’ll need that “wow” factor. This is also true if you are selling your rental property via a real estate agent or FSBO.
Walk your property, clean and repair issues where needed, in order to put your best foot forward. Otherwise, any repair or clean-up needed will typically lower the price offered for your rental property, or written into the offer as a contingency, meaning you should make the repairs prior to the close of escrow.
If selling via agent or FSBO:
a. Harness friends and family: Post your rental property on your facebook page, tell your friends and acquaintances that your rental property is available. Consider offering an incentive to the friend that sends in a buyer or sends in the most people to your open rental units.
b. Be pro-active and help market: Post your rental property on the local craigslist and newspapers. You want to increase the chance the right buyer will see your rental property on the market.
c. Show benefits and comps: When showing your rental units, a quick glance at market conditions help. Think about leaving a rental report for interested buyers “comparable rentals in the area are renting for, this rental property occupancy rate is, or this rental unit is convent for urban professionals we are close to”.
d. Present an incentive to the rental property buyer: Provide an incentive like: New GE appliances package stove, fridge, & dishwasher, (not old ones) or 6 months community dues paid-in-full. This may make a difference and most people love to feel they got a deal or reward.
Sell Quick and For Cash: The we buy rental units for cash buyers will often buy rentals in “as is” condition and expect there may be some repairs and updates needed and are less influenced by the “wow” factor. Nor do you have to offer incentives to receive a cash offer for the Denver rental units.
I’d like a no obligation cash offer to Buy my Denver rental units.
But overall, no matter how you opt to sell your rental units in Denver the condition of your rental property figures into the offer received.
Realistic listing price for the rental property in today’s market will assist you to sell quicker.
You may have bought 10 years ago or bought your rental property during the peak of the housing market. Either way, be sure that it’s a win-win situation for both you and your buyer based on today’s comparative market value of your rental property.
Know how much cash you to walk away with to help you get out from under a difficult financial situation.
a. Determine today’s value of your rental property via a market analysis of recent selling prices of comparable properties to yours.
b. Can you manage to sit on the market? Know the length of time the average rental property locally sat on the market, what percentage of list price they got, and how much they paid in commissions for the sale of the property.
c. Know the fees and commissions involved.
d. Is cash for your rental property offer a better option? You won’t sit on the market for months, nor have to leave your rental property for multiple showings, constantly adjust pricing, pay commissions, or be required to make repairs?
Have you got Equity or Debt in your rental property?
Whether you have equity in your rental property has a big influence on the need when selling fast, consider:
a. The more equity that you have in your rental property the better position you’ll be in when you walk away from the sale of your rental units.
b. The more debt you have, if you’re upside down on your mortgage, have multiple mortgages, or have a pending foreclosure, you may need to get out fast from under your financial situation in order to avoid affecting your credit rating or going into bankruptcy or foreclosure.
So knowing your options and how much you need to walk away with provides you the ability to assess a fair competitive pricing strategy to sell your rental units fast in Denver.
Savvy Rental property Sellers Compare the Time Versus Cost of Selling Your Rental property:
1. Rental property sale via agent – what is the average rental unit sales prices locally and what are the fees & sales time? What will you walk away with?
2. FSBO – this method takes time and money and typically FSBO buyers ask for portion of the average agent commission be taken off the asking price. Are FSBO’s selling? How much time are they on the market and what is the comparable sale price of the average FSBO sale.
3. Sell Your Investment property for Cash – Accept a no obligation, cash offer for the rental property where most sell your rental units for cash investors buy as is, close within days (on your schedule ), and enjoy no contingencies, inspections or other time delays.