Many people sell their homes to move into something bigger or different for their specific needs. Others sell their homes because they want to make some quick cash. Whatever your reason is, it's important to take precautions before leaving your home vacant for too long.
If you are selling your house, there are some important things you should do to make sure it is as easy as possible for the potential homebuyer. Sellers have a lot of responsibilities towards potential buyers. You need a reason for each of the prospective buyers to select your property. If you want to have a successful sale, you have to know who these buyers are and what they're looking for. In this article, you will learn about the most important things to keep in mind that will make it easier to sell real estate.
Landlords with tenants should start here
The first thing you should do is call, text, or email the tenant and let them know your plans to sell the property soon. You should also ask them if they prefer to stay in the property or vacate it so that someone else can rent it out. If they want to stay, then try to set up a meeting with them where you present all the necessary documentation for them to sign and talk about deposits. And selling a house with tenants can be more demanding and rewarding. Open communication is key, so make sure you stay in touch with them and give them monthly updates about the progress of the sale.
Selling a home takes time and effort
There are so many possibilities of being an owner of real estate, so you should never rush your decisions. The path you have chosen to take will have a huge impact on your future so make sure it brings you contentment and joy. If you are looking for a rental property or want to sell your property in the near future, you will need to make some immediate repairs. If you are selling, potential buyers may want to see the home before they put in an offer. Put yourself in their shoes and anticipate what they will be looking for in a home. So consider these two things when planning a sale:
- Making necessary repairs
- Get documentation together to prove that you have done so.
Be sure to check with your tenants if anything needs further repairs before you enlist your property for sale. Try to have your home ready for showings by clearing out any clutter that can give buyers a bad impression of the property. Maybe you can offer a discount on rent and ask your tenants for some assistance.
Real estate with tenants is a business investment
Selling a house with tenants also gives landlords peace of mind. One of the main benefits of selling your home with tenants in place is that you don't have to worry about being on-site or arranging for alternate living spaces. This is especially useful if you are unable to be there in person. The tenant will be on-site and can help care for the property while it's on the market, so there's no need to worry about upkeep.
Tell the buyer
The tenant will pay rent, plus rental fees that will cover expenses like property taxes and mortgage. This provides an opportunity for an investment return on the market value of the home. Rental properties provide stability because rent is not subject to changes in interest rates or economic cycles. When landlords sell their rentals, they can use cash to buy a home with fewer monthly payments, offer professional management services with increased competitiveness, allow for greater personal freedom among family members, or simply have one less expense to manage at home. Rental income is great when it exceeds expenses by enough money to pay down debts faster or put away savings for retirement. Investors can learn more about the business prospects the real estate market has to offer. By renting out homes in your area you're getting extra money for your existing properties while prospects are cheaper than they were a few years ago.
Make a to-do list before listing
Before you list your house for sale, make sure to take care of the following things:
- Give your tenant a heads up about the sale and ask if there are any repairs or issues to take care of before you list it
- Speak to your real estate agent about what else needs to be done before listing. They will likely prepare a "to do" list and assist you in meeting all real estate contract conditions.
- Take pictures to post when listing. Make sure the lighting is good and the house looks as tidy as possible
- Call a contractor or handyman if needed for additional repairs
Selling real estate is not an easy task, especially in today's economic situation. It may take some time and effort but it can be very worthwhile if done right.
Documentation and signing
One of the most important documents in completing a sale is an "as-is" statement. All information contained in this document is supposed to be truthful and accurate, which you can attest to with your signature. The lease agreement is another key document that should be signed by both the tenant and landlord before any contract is terminated or modified. It contains important information about the rent, lease terms, lease extensions, tenants' rights and obligations, late fees, etc. Lastly, you'll need to sign off on your mortgage company's paperwork. It is necessary to release ownership of the property if there are outstanding balances.
If your tenants want to move out
You'll need to give your tenant advance notice of the sale and ask them if there are any repairs or issues that need to be taken care of before the house is listed for sale. You may want to consider offering them a relocation package that can go a long way in helping them get settled into their new place. This is especially helpful if they are renting every month or have family that lives outside of the area. Assistance may include things like paying for their moving expenses, security deposit, first month's rent, and even furnishing their new home. Some landlords even offer additional money for the time spent looking for a new place to live, since it can take weeks or months to find one. Also, make sure that the tenant has their forwarding address updated in your records after they move out. This way you will be able to send them their security deposit once you collect it. You may also want to check if the tenant has left the utilities in their name. If they do, you will need to call and ask them to close these accounts as well before listing your home for sale.
The tips we’ve provided in this article should help get you started on your journey to selling real estate. It can be a difficult process, but it is worth the effort if done correctly. Make sure that you take care of all necessary documents and agreements before listing your house for sale, including an “as-is statement” and lease agreement with tenants who are renting. Remember to include in your listing that real estate is a great business investment because the revenue stream of rent is almost always guaranteed and can be an invaluable source of cash flow for your company.
