As the saying goes among card players, you’ve got to know when to hold ‘em and when to fold ‘em. The same ethos holds true in the world of real estate. You have to know when it’s worth holding onto a property through thick and thin and you’ve got to know when it’s best for your interests to cut ties and sell while you can. These tips can help you prepare to do the latter as you get ready to sell a real estate investment.
Improve the Condition
For all the fixer-upper shows that dominate the airtime on HGTV, chances are that no one is going to be interested in your property if it’s an absolute dump. You need to make sure that your home is, at the very least, in passable condition before you even think of putting it on the market. True, some people will care more about location than condition, and some don’t mind or even like the challenge of a fixer-upper, but there are limits to that.
Furthermore, if you expect any serious haul from your sale, “passable” isn’t good enough. You need to do some maintenance work first to make sure that your property is in good enough condition to be attractive to potential buyers.
Be Aware of the Three Cs
In property selling, you need to be aware of the Three Cs — codes, contracts, and certifications. You need to make sure that your property is up to code, review the nature of any contracts pertaining to its legal condition, and ensure that any certifications necessary are carried out ahead of time.
You need to make sure that you are aware of your tax situation both before and after selling. This means making sure that you take taxes into account when coming up with the list price for your property. You’ll also want to consider taking measures such as a 1031 exchange to defer tax payments.
With these factors in mind, you’ll be ready to put up your home for sale on the open market.