Tag Archives: Selling

3 questions to ask before buying an investment property

true-property-3-questions-to-ask-before-buying-an-investment-property

It’s buying and selling season. The spring and summer months are always busy for real estate.

If you’ve been thinking about getting into investing, the next few months are the perfect time to start.

A buyer’s agent is your best friend when it comes to negotiating a price for a property, but if you have decided to do it yourself, there are a few key things to keep in mind.

I’m sure you’ve looked and looked at a lot of properties by now, and if you are ready to get to the negotiation table, you’ll know what similar houses are selling for.

Remember, the key number here is the final sale price, NOT the asking price.

It is fairly common that an agent will list a house 5-10% more than what the vendor will settle for, so keep that in mind when you are heading into negotiations. The asking price is just the starting point. The final sale price could be quite a bit different.

So, before you barge on through to the negotiating ring, here are a few questions to ask the seller.

Why are you asking for that price?

Sometimes a vendor will take on their agent’s advice and list their property appropriately; others will have their heart set on a particular price and will-not-budge, no matter what their Realtor says. These types of sellers are always tough to negotiate with.

Have you had any other offers?

If so, you will then know what the competition is like for this property. A lot of competition means the final sale price won’t be as low as you would like.

How long has it been listed for?

If it’s been on the market for a while, the vendor may be more willing to negotiate. If it’s just gone onto the market, then the seller may be willing to wait around to see what happens.

Why are you selling?

If you know their personal circumstances – divorce, a death in the family, a move across the country, then you know they may be willing to settle quickly (aka willing to negotiate), which may provide you with the opportunity to buy it immediately.

What other important questions do you ask the seller before you purchase their property?

Advertisements

Selling a rental with tenants

How to decide what rent to charge

You have decided to sell a property, but it currently has tenants, what is the best way to go about things so you can sell the property while also keeping your tenants (relatively) happy?

If your tenant has signed a fixed lease, you can’t make the tenant leave because you have decided to sell. The tenant can remain until the end of the lease, and the new owner will then become the lessor. Be aware of your state’s laws when it comes to selling a property within a two month period of the tenant signing the lease. If they were unaware that this was your intention, then the tenant may have the right to end the lease with 2 weeks notice.

When you make the decision to sell your rental, your tenant will most probably still be living there when you list it. This means they need to make sure the house is show-ready all of the time.

What can you do to make the process easier for everyone?

Inform your tenant ASAP

If you have a tenant living there, the most important thing you need to do is tell them that you are putting it on the market and what you expect of them. You have to be open and upfront with them at all times about what is going on and when they can expect people to come and view the property. Scheduling Open Homes in advance will help them plan but they must also understand that potential buyers may call in at any time.

There are a few ways you can liaise with your tenant when it comes to showing potential buyers the property. You can let them know that the property will be open on a specific day and time for open home inspections, or tell them you will only show the property when a convenient time has been arranged with them.

Start getting organised

You may advise your tenant to start tidying up. They more they can pack now the easier it will be when they have to move. Even if they aren’t ready to actually start packing, they should go through all their belongings and get rid of everything they don’t want. Getting rid of stuff now will make things less stressful when the time does come to move. This will make their space much more comfortable too, especially if they don’t have much to clean on a daily basis.

Put personal items away

All flat surfaces such as benches and coffee tables should be clear when a property is on show. It may be more convenient to pay for storage somewhere to keep things that aren’t used much. Keep basic necessities on hand and put everything else away. Also, keep living areas clean and tidy. Anything that isn’t using on a daily basis must go. It is a good idea so get this done ASAP so a photographer can come and take listing photos. Check your state laws because it could be a requirement to have written consent from the tenant before taking photos.

Have you ever sold a rental while the tenant was still living there? What do you recommend people do to make this time less stressful for everyone involved?

How to negotiate a better investment deal

True Property -How to negotiate a better investment deal

One of the keys to getting a property that is good value is knowing how to negotiate. I’m sure you know a talented negotiator, one that can get discounts off anything – cars, houses, and especially at their local farmers market. They see the price as a starting point rather than the end point. When it comes to negotiating in property, there are a few key areas that can create a more favorable environment – for you.

Do your research

If you have done all your market research, you will be in a strong position to offer a realistic price which gets a good deal for you at the same time. Make sure you are knowledgeable about the market and what you are buying. If you hesitate for a second, the seller will sense it and will be able to predict your next move.

You’re not the only one

You need to convince the vendor that their property isn’t the only one you’re interested in. They need to know that you are prepared to walk away – no vendor wants you to walk away, which may mean they will be more willing to make a deal. Make it clear you have other properties you are looking at. The person who has more than one option will be the person who has the most negotiation power.

Be strategic

Your first offer will benchmark all other offers so go in high. The seller will undoubtedly come back with a lower counter-offer – you can always go lower, but you can’t go higher once the first offer is made.

Time is on your side

A vendor who needs to sell will be more open to doing a deal. Of course, you won’t always know their timeframe upfront, and the agents may or may not want to share this information, but you can get a general idea on how motivated they are by asking what other offers that may have received.

What negotiating techniques have worked best for you? Let us know your successes.

 

What do I need to be aware of when selling a property with tenants

What do I need to be aware of to sell a property with tenants
You have decided to sell a property, but it currently has tenants. What do you have to be aware of in terms of your tenants’ rights?
 
If your tenant has signed a fixed lease you cannot make the tenant leave because you have decided to sell. The tenant can remain until the end of the lease, and the new owner will then become the lessor. Be aware of your state’s laws when it comes to selling a property within a two month period of the tenant signing the lease. If they were unaware that this was your intention, then the tenant may have the right to end the lease with 2 weeks notice.
 
You have the right to show the property to potential buyers, and tenants have the right to ‘quiet enjoyment’. So how do you handle this balance?
 
The best way to handle this balance is to put in writing an agreement between you (the landlord) and the tenant as to how to proceed. The agreement could include conditions such as:
  • The property will be open on a specific day and time for open home inspections, which may or may not include public holidays.
  • The landlord or agent will show the home only when a convenient time has been arranged with the tenant, and that you will provide at least 24 hours written notice of the showing. 
  • Photographing the interior – encourage the tenant to remove any possessions they do not want to be photographed. In some states, it is a requirement to have written consent from the tenant to go ahead with photographing.
  • Outline any conditions of an on-site auction.
  • The tenant will pay reduced rent as compensation for the intrusion.
If you are not comfortable with providing a reduced rent, be prepared for the tenant to keep a record of your activities, which they may be entitled to claim later. This record will cover areas such as inconvenience suffered, the number of times the property was shown, and how long they have had to stay out of the property. They may use this to gain compensation for interfering with their right to ‘quiet enjoyment’. However, they have to prove that it was substantial, for their claim to be successful.
These are just guidelines for you to think about if you are planning on selling your property. Please, follow-up with your state’s tenancy union, or get input from your friendly lawyer. 
 
Have you sold a tenanted property? What are your tips when dealing with tenants during this time?

 

What is a home stager and do I need one to sell my home?

Should I hire a home stager to sell my property?A home stager works to prepare your home for the real estate market. They are similar to an interior designer but instead of creating a space that is specific to your taste they make your house desirable to the highest number of potential buyers possible, so it will be more likely to sell quickly and easily.

Why should I hire a home stager?

Home stagers are highly experienced in what buyers want and will start by removing all your personal items so buyers can really visualise what it will be like for them to live there. They will then examine your home from top to bottom and give recommendations on what needs to be done and create a plan of action.

Things like replacing the furniture to make a space more livable; carrying out any repairs that may need doing (they will also help you find a contractor to carry out the work); repainting, refinishing floors, replacing curtains if necessary are all things a home stager will be looking at. Often they keep an inventory of their own furniture to use, so be prepared to move  your belongings to storage, if you haven’t moved into another house already.

Once your home is beautifully ‘staged’,  you can hire a real estate photographer to take professional photos to add to your listing. Buyers generally start researching online so having gorgeous photos is absolutely essential to getting your property sold quickly. If you are a bit apprehensive about selling and could let your emotions get in the way, hiring other furniture and making your house look less like your home may be the perfect way to detach yourself from your house and let the business side of selling take over.

How much can I expect to make?

Home stagers are not as expensive as you might think. There are many companies out there to suit all needs and every budget. As a general rule of thumb, for every $1000 invested in the property could add up to $3000 on the selling price. If you invest $5000, you could add as much as $15,000 – $20,000! Buyers are much more savvy these days and they know what they are looking for. There are a lot of choices out there so a beautifully decorated home may be the tipping point to sway buyers to look at your home over another one.

What do you think? Would you hire a home stager to get your home ready for sale?

This is something to be aware of if you are looking at buying a property for an investment. Don’t be fooled by just how it looks, remember that if the numbers add up then go for it, but don’t be swayed by how the property may have been staged.

Can you live in your house while trying to sell?

When you decide to sell your property, chances are either you or your tenant will still be living in your house while sellingliving there when you put it on the market. This means keeping your house in top-notch condition at all times because you never know when someone will come around for a viewing.

What can you do to ease the uncomfortableness of living in a house for sale?

Tell Your Tenant

If you have a tenant living there, the first thing you have to do is tell them that you are putting it on the market and what you expect of them. You have to be open and upfront with them at all times about what is going on and when they can expect people to come and look. Scheduling Open Homes in advance will help them plan but they must also understand that impromptu people may call in at any time.

Get Organised

You may advise your tenant to start getting organised. They more they can pack now the easier it will be. Even if they aren’t ready to actually start packing, going through all their belongings and getting rid of what they no longer want or need will definitely make things less stressful when the time does come to move. This will make their space much more comfortable too, especially if they don’t have much to clean on a daily basis.

Put Everything Away

All your benches and counter-tops should be clear when your property is on show. It may be easier to pay for storage somewhere to keep things you don’t use much until you find another place. Just keep your basic necessities on hand and put everything else away. Also, keep your living areas clean and tidy. Anything you aren’t using on a daily basis must go.

Have you ever lived in a house while it was on the market? What do you recommend people do to make this time less stressful for everyone involved?

 

 

 

 

Getting Your Property Ready to Sell at an Auction

Getting Your Property Ready to Sell at an Auction

Following on from Buying a Property at an Auction, what can you do if you are on the other side and are selling a property at an auction?  This could either be an investment property that you want to let go, or your primary residence. Whichever it is, you really want to make sure your property is looking its best, so doing some basic maintenance will make all the difference.

Clean the house

Obviously, the first thing to do is give the property a thorough cleaning. It may be worth it to get professional carpet and curtain cleaners in to give it a proper going over. Scrub any mould or mildew that may be in the bathroom and empty all kitchen cupboards to give everything a good clean.  If you are selling the property before it has been emptied, then make sure you clean everything that’s in it. Dust all furniture and wipe any ornaments and decorations. This includes the tops of picture frames and be sure to get any fingerprints or other marks off the TV! On the day of the auction, spray an odour-eliminating spray to get rid of any smells, especially if there have been pets in the house.

Basic Maintenance

Check all taps to make sure they are not leaky and loose. Look at all the tiles and scrub them if they need it and re-attach any that might have come unstuck. Turn on all the lights to make sure the light bulbs all work. Look at the extractor fans if they are installed.  If there’s an air conditioning unit, make sure that the filters are taken out and give them a thorough cleaning too.

Tend to Gardens

Spend a lot of time outside getting everything just right. People see the front of the house first so make that your prime focus. You don’t want people turned off before they even get there! Mow the lawns, trim edges and weed all the gardens. Make it look as welcoming as you possibly can. Get rid of all rubbish before the auction. Check everything is tidy outside and put away in its proper place. Don’t forget to sweep out the garage and outside shed too!

Have I missed anything? Comment below and leave me your essential cleaning tips to get ready for an auction. Even if you are having an open home for your rental property or some potential buyers are coming to look, the same principles apply.