Is time to sell your house or investment property? The real estate market is going strong and prices are rising, your property is now worth a lot more than when you bought it. How do you go about selling your home or investment property?
Deciding to sell a property is a tough decision to make if you're not in a financial crisis of some sort and don't have to sell. Should I keep the property or is just too much work to manage?
Of course, when you sell a property you usually also have to buy a new property, move if you're living in the property, show the property, advertise the property, and keep the property open or accessible so people can view the property. It all can be a hassle and a lot of work. But if the real estate market is surging, perhaps it's time to put the property on the market and see what offers you get.
If you can, try to begin marketing your property when the weather is nice so you can easliy show the property. Also, make sure you have a good web presense and your real estate agent is getting your property listed on all the major online real estate sites, from Zillow.com to Trulia.com.
The other thing to consider is if you're selling an investment property is you can buy another property via a 1031 exchange, and avoid paying capital gains taxes on the property.
And, you can qualify for a principal residence sale exemption up to $250,000 ($500,000 for couple filing join tax return) if you own and live in the property at least 24 months of the last 60 months before its sale. The 24 month occupancy doesn’t have to be continuous and can be broken up by periods of renting the property.
A few tips to keep in mind when you're selling a property:
- Put your stuff in storage; open up the space, you don't want the property or space cluttered
- Curb appeal is real; make the house shine so you don’t kill the deal at the driveway (cut the lawn, trim the hedges, fix the drain, paint, take out the trash, remove any shrubs or dying trees that block or obstruct a view or walkway, and so on)
- Agents may reduce the fee if your using their services to buy a home as well as selling your current home
- In the beginning, don’t over price your property anticipating that you can always go down
- An unreasonably high price will turn buyers off and put your property in the overpriced category—you’ll lose momentum from the get go
- Have a plan - a lowest price you're willing to go to and stick to it
- If it's an investment property you're selling, there's no need to remove the tenant, you can offer the home as a rental property and target investors looking to buy income generating properties
- Who are marketing the property to? Is it to families or young adults or retired couples? Focus on what the property offers your specific target buyer.