Selling your investment properties once or every few years is a fact. But why sell your investment properties and what are some pro tips?
There are three main reasons why people invest in real estate: to generate rental income, create tax deductions, and capital gains. Owning investment property in Columbia TN or Springfield TN has been great investments and are recession-proof. But there comes a time with any investor for selling your investment properties in Smyrna and multi-family properties in Murfreesboro or Clarksville TN.
Capital gain, though, is inaccessible to an investor unless they give up ownership of the property. Regardless of how much more valuable property has become since it was purchased, the increase in value stays on paper until the owner sells it. Selling a property is how real estate investors cash-out on the increased value of their assets, explains Haas Properties. How a seller approaches the sale of their property determines if they reap the full benefits of the capital gain on the property or not.
How to sell an investment property?
Most investors trying to sell their investment properties will follow the standard route for selling real estate. These are strategies that have been around for a long time and are used by most realtors. Because so many people use them, buyers have become used to these methods and they have lost their effectiveness.
Real estate investors who invest effort in learning more up-to-date methods will sell their properties faster. This post highlights the updated methods for selling an investment property.
But first, the standard methods for selling your investment properties. Even if these methods are old, they should not be overlooked. Since everyone uses them, the problem lies with using them alone.
- Buy newspaper and magazine ads
- List the property on zillow.com and other properties listing sites
- Put a sign in front of the house
- Distribute flyers to the places where potential buyers can be found
- Host an open house
Innovative methods for selling your investment properties
1. Create a great ad copy
Very few people who are trying to sell their homes understand the power of great copy. Property owners wonder why they need someone else to craft the words they will use to describe their property to potential buyers.
The simple reason why you need a professional copywriter is because you want your adverts to be poignant. There are thousands of homes out there that are just as good as yours. Why would a buyer choose yours over others?
People make decisions at a rational and emotional level. Great copy helps your property evoke strong positive emotions that lead people to take action.
2. Use great graphics and videos
This is not just about walking through the home and taking shots or shooting videos with a smartphone. Everybody does that and you do not want to get everybody’s results.
Instead, hire someone to stage the home and then have a professional videographer record high-quality video footage of the property.
The video should feature a guide – someone who is comfortable in front of a camera – walking through the house and explaining the best things about the property. It could also include shots of you and your family enjoying the space.
3. Build your own website, create a virtual tour & employ social media
A separate website dedicated to selling your property will single you out from the crowd. It creates an impression of professionalism and allows you to capture the buyer’s undivided attention.
A virtual tour of the property allows people to do a walk-through of the house on their computers and mobile devices. People who request an actual walk-through after doing a virtual tour are more likely to buy.
Finally, use social media pages to share the website and the virtual tour of the home.
4. Create a referral system
A referral strategy can work online and offline. In the offline version, you can talk to real estate agents in your area and offer them a percentage if they refer someone who eventually buys the property.
You may also do this with friends and acquaintances. In the online version, you can sign up for one of the several referral programs that allow websites to embed links to your own website on their site. Referrals are a simple way to get the word out about your property, without spending a ton of money.
5. Target Facebook live events
Facebook live events are becoming the preferred way for people to announce major life changes to their circle. Facebook allows you to advertise on these events when you register as an advertiser.
You can choose which kind of events you want to advertise on, as well as, the type of audiences you want to reach. If your home is a starter-level home, the events you target could be engagements, marriages, and pregnancy announcements. If it is a large single-family unit, you may target people announcing a move to a new city.
Facebook also offers platforms for selling houses and open houses by communities, towns, and regions such as Nashville Buy Sell Trade Homes for Sale/Rent, Clarksville Homes For Sale, or Columbia Tennessee Buy, Sell, Trade.
6. Show your rental income
Other investors who are considering buying your property would be interested to see how it performed over a given period. They want to see the rent roll, rent growth rate, utility costs, and how much you spent on maintaining the property. Other helpful information is the condition of the house/units and when it was last renovated.
These are insights that are normally not accessible to an investor when they are buying a house. The fact that they can get this information makes the purchase less risky and your property more attractive. Sometimes, it is the little things that count the most. Just doing a little more than other investors are willing to do, can make the difference to how fast you sell that property.
For more in-depth information on selling your investment property, read our article “6 Tips for Selling Your Rental Property in Nashville.” If you own one or more multi-family properties, you may want to read our article “6 Tips for Selling Your Unwanted Multi-Family Property in Nashville.”
Southern Homes Investments: Another Resource
Investors like Southern Homes Investments are always looking to add investment properties particularly multi-family property to their portfolio. We are also connected to hundreds of other investors who want to add to their portfolios as well. Size is not an issue. Your investment property in Murfreesboro may be only one door or your 8 unit investment in Clarksville is something we can help you with. We buy houses in Clarksville as well as other towns in Middle Tennessee. Give us a call at 615-500-4466, we would like to talk to you.
Disclaimer: David Wright is a licensed real estate agent and this article is not a solicitation to list your house.