A real estate investment is considered more attractive when risk is mitigated. That much is not hard to understand. However, it is entirely possible to reduce risk by making smart choices and understanding the market. Selling a home, for instance, is not necessarily an effortless process, but you can reduce any impending risk if you just take the appropriate steps.
Again, selling a home can be a complex and, sometimes, intimidating process. Thankfully there are steps you can take to ease the process and make things work for you – rather than against you. However, it is the buyers’ needs that dictate what exactly a salable property is. According to InMan News, “Millennials prefer fuss-free units in the metropolitan area, while the affluent peruse multiple vacation homes in the countryside for recreation.” Regardless of your target market, your goal is to close a deal. Here are several tips for selling a property faster, and for more money:
Verify Title Documents: The sale of a property hinges on a number of factors – many of which are of the cosmetic variety. Common sense suggests that the better a property looks, the more inclined a buyer will be to take it to close. However, selling a property goes well beyond the physical characteristics of home. There is one aspect in particular that needs to be accounted for: the paperwork that accompanies every sale. In fact, paperwork plays a larger role in the sale of a home than most investors realize.
It is important to envision the sale of the property from a buyer’s perspective. The last thing buyers want to do is get caught up in a litany of legal paperwork. Of course, there is no way to eliminate paperwork altogether. However, it is entirely possible to reduce the amount of papers that need to be addressed. The extent of paperwork – or lack thereof – is directly correlated to the ease of a transaction. Eliminating any burdensome paperwork prior to the sale will work in your favor. Make the process easier for the end-buyer and you may be rewarded with a timely transaction.
Pro Tip: Come to the meeting prepared. Make sure you know everything there is to know about each document. Understanding every document involved in a transaction will move the process along smoothly. The more confidant you are with stamp duties, residence permits and liens, the more likely a buyer will close with you. It is all about making them feel confortable.
Stand Out On The MLS: Marketing a property for sale is one of the biggest steps of a transaction. If nobody sees the property, how will it ever receive any offers? With regards to the MLS (Multiple Listings Service), investors need to make their property stand out from the rest. Common sense – right? However, the task at hand is easier said than done.
It can be argued that standing out on the MLS is more important than any other exposure within the real estate market. To do so, be sure to highlight the right features for the audience you are looking to host. In other words, pick a target buyer group and cater to their wants on the MLS. Do a little research and find out what most buyers want in your price range. Be sure to emphasize those points in your MLS listing.
Pro Tip: Look at comparable properties to see what it is people are expecting in a property of the same price range. The key is to provide said amenity, and then some. Make sure any upgrades you make on a property are slightly above those of the neighboring properties. Finally, let the MLS know. Highlight what it is you added and make sure it is what your target buyers are looking for.
Stage Like You Mean It: Some may argue against the concept of staging a property – suggesting that it manipulates the true nature of a sale. However, there is little to suggest that staging doesn’t work. In fact, studies have shown that properly staging a home can increase value and reduce the amount of time it is on the market.
Staging a home allows potential buyers to envision the life they could have if they follow through with the purchase. In touring a house that was staged by a professional, the perceived value is automatically increased. Perhaps even more importantly, staging a home allows you to target a specific audience.
Pay Close Attention To Yards, Kitchens and Bathrooms: The expansion of the economy has made the prospect of homeownership a reality for more people. Millennials, in particular, are making up a larger portion of the buyer pool than ever before. That said; they do not want to move into homes that require work. As an investor, it is your responsibility to make the home attractive to the end-buyer. Yards, kitchens and bathrooms should receive the majority of your rehab budget.
It is no secret that kitchens, bathrooms and yards draw a lot of attention. Above all else, buyers will scrutinize these three areas the most. Use this knowledge to your advantage. Be sure to incorporate “sizzle features” to sell these respective areas. The goal is to have the yard attract perspective buyers (curb appeal) and for the kitchen and bathrooms to seal the deal.
Pro Tip: As I am sure you are aware, the devil is in the details. When you upgrade these areas of a home, make sure you remain consistent. Buyers will certainly appreciate a well-designed kitchen layout that suits functionality and is visually appealing. Again, draw them in with the curb appeal and keep them with the kitchen and bathroom.
Property Size Matters: In selling a property, it is important to account for the size of the property. Remember, land is just as precious as the home that is on it, but so is the price that accommodates each. Ensure accuracy in calculating the salable area value depending on the type of the property. If you have the space, you may want to consider an addition, or something that adds ads more usable space.
Pro Tip: If you are not able to do the extension yourself, secure planning permission for future projects. At the very least, prospective buyers will want to know that they have options.