Are you interested in selling an investment property? If the answer is yes you might already be aware of how challenging this task can be. Especially when certain decisions could cost you thousands! If you want to avoid making fatal errors and create a more positive selling experience, the first thing to do is… learn what not to do!
With that in mind, let me take you through the 5 most common mistakes vendors make when selling, and what you should do to steer clear of them.
The way a property is presented on inspection day can make or break its selling potential. Therefore, putting your best foot forward is the principal concern. Ensure, if possible, that the tenants have vacated the premises before it’s put on the market. Many vendors attempt to sell with tenants still occupying the space. This can provide several unnecessary challenges. For a start you will need to work around their schedule, which makes regular open house showings a near impossible task. On top of access issues, the overall appearance of the property often suffers. Without the time to rearrange furniture, and organise general cleaning and maintenance, the space is automatically falling short of its full selling potential. How can you remedy this issue? Try to terminate the tenant’s lease prior to putting the investment property on the market. If this isn’t possible, attempt to let the tenant know with an ample amount of preparation time.
Want to know how to sell? Then knowing who to sell to is half the battle! Vendors who don’t consider who their buyer demographic is often suffer the consequences of having an unspecialised marketing approach. However, sometimes it can be more appealing to prospective buyers to see an occupant already paying solid rent. If you believe your property could benefit from having a current tenant don’t worry about styling the property until after a buyer is already set to move in.
As previously mentioned, the importance of renovating your space cannot be overlooked. Having an updated property is essential if you want to generate interest. This doesn’t have to be an expensive style overhaul. Minor repairs such as a fresh coat of paint, new or recently cleaned carpet, window dressings and new tap and door fixtures are some small examples. All these seemingly insignificant factors can go a long way. But remember, all these renovations should be done before any indication of the property’s availability hits the market!
Choosing an agent
Never underestimate the role of a great agent. Many landlords tend to sell their property through the sales department of their managing agent, assuming the same level of service due to a pre-existing relationship. This may not be the case and there may also be better agents in that area, with a solid track record of past results. Do your research to see which selling agents are active in the area and getting great results for properties like yours. Turn up to the open houses and see how they do things.
Do your homework! Neglecting to research your market is a fatal error that vendors make far too often. This usually results in investors pricing wrongly. Researching the location of your investment property is an absolute must, especially if you don’t live in that area. Keeping on top of popular property configurations, pricing and major appeals of the suburb will consolidate whether the pricing for the sales campaign is appropriate.