Deciding to Sell

When that time comes that you are ready to sell real estate, you are ready to pursue something new or circumstances dictate a needed change. However, whether you are an experienced Seller or a first time Seller, you will encounter waves of anxiety and anticipation. At the very least, minimize the anxiety so that you can enjoy more of the anticipation. Selling is not easy but the process can be smooth. Here are some steps that you can take to give yourself the best chance of a successful sale:

Study The Market

Although we will give you the best advice possible, doing some preliminary research and getting informed will actually cut down on your time to attract Buyers. Sometimes that initial research will really help to determine if in fact now is the time for you to enter as a Seller. Among the questions that you should ask yourself are: Is now the time for me to sell? Is my family ready to support my decision to sell? What will I have left over net to real estate and other expenses? How much time will it take to find my next investment? Can I afford to pursue another more challenging investment with my net proceeds? Do I have enough reserve capital to withstand a market change? Will today’s leverage opportunities help me to succeed in the next three to five years?

Know Your Financial Position To Sell

After conducting some preliminary research and deciding to work with us, you will begin shaping a realistic rate of return (your target percent!) according to current market conditions. If you are looking to buy another investment property, take that percent goal that you have to list and sell your investment, and find how much you can leverage upon selling (or before a sale occurs) by getting a pre-approval with a lender. If you are only looking to sell what you own, you are still going to have to assess your financial standing when a sale occurs. For example, how will the capital gains tax rules impact your future plans for the net proceeds?

Expect The Unexpected

After getting Buyer feedback from those who have viewed and considered your investment, and maybe rejecting a few bids, you are under contract! There is a strong desire to allow some of that anxiety to lessen. Don’t let up! When a Buyer partakes in due diligence, there will be many questions asked about your investment. Sometimes property inspections are ordered. During this time, it is up to you to verify income and expenses, answer questions about what a property inspection may have uncovered, and test your nerve. If something unexpected arises during your due diligence/inspection period, what would be best course of action? Continue, negotiate, or walk away.

The Financing Process

Often times, it is rare to deal with an all cash Buyer that does not have a financing contingency in a sales agreement. So, once the Buyer’s due diligence has been completed, and you have agreed to continue with the transaction, your focus now is on the Buyer’s Lender. That pre-approval or proof of funds that you had received early on when the Buyer submitted their offer was only the first step. In fact, there is no guarantee that a loan will be issued to the Buyer in spite of the pre-approval. The financing process is usually tough for Sellers because it is totally out of their control. Will the Buyer in fact perform by getting financing? We help to walk you through where the Buyer stands by keeping lines of communication open and flowing. Once again, there could be a time where you would have to decide: Continue, negotiate, or walk away.

Title Insurance And Closing

Usually but not always the case, obtaining title insurance on a property should be routine. By the time the transaction has reached this point, there is a much greater chance of a closing occurring. All your attention to detail and planning to sell will have paid off with the exchange of funds at the closing table. Take a short break, enjoy and relax, and then think about what you will do with your sales proceeds. I am sure that we will have some ideas to offer!