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Especially if you've owned investment real estate for a number of years, your property may be very valuable. But if you overprice your property, it may sit unsold for many months and end up fetching less than it otherwise could in the real estate marketplace. Underprice your property and you may leave money on the table.
If you're going to hire a real estate agent to help sell the property, interview at least three agents who specialize in selling such property in your area. Each agent should prepare a comparable market analysis (CMA) to evaluate your property's worth.
By digging into the details of each CMA the agents provide you, you can better determine your property's real worth. And as you continue finding out more about your local market and visiting properties, you can determine which agent did the best job with her analysis.
For properties that have sold recently, there's no substitute for actually seeing the property. You may be surprised at how many property owners are willing to show you their properties. Remember, though, you won't get to see any unless you ask.
Some rental buildings simply are a pain in the posterior to find comparable sales for. Perhaps no similar buildings have sold for a long time in the area or no similar properties exist.
Don't be penny-wise and pound-foolish. If you have doubts about the value of your property, even after having real estate agents prepare a CMA, spring for the fee of several hundred dollars to hire a good real estate appraiser who has experience with rental properties like yours in the area.
- Keep Copies of the Closing and Settlement Papers
- Keep Proof of Improvements and Prior Purchases
- Stash Your Cash in a Good Money Market Fund
- Double-check the Tax Rules for Excluding Tax on Profits
- Cast a Broad Net When You Consider Your Next Home
- Remember That Renting Can Be a Fine Strategy
- Reevaluate Your Personal Finances When Things Change
