Multiple Investments To Consider
Selling a house for some is as simple as putting a home on the market, setting the terms of sale, and accepting an offer. Be sure you carefully define the terms of sale; especially when it comes to remote property acquisition. There are many scams out there, but if someone wants what you’re selling and agrees on a price, they’ll work with you.
That said, it can be a lot more complex to sell a house for some people than others. Regardless of what defines your situation, it’s very smart to take proactive measures from the start. You want to position your property for the greatest possibility of a successful sale. Doing that requires a deliberate and careful approach.
In this writing, we’ll explore several areas of investment you’ll want to closely consider before you list your property. Granted, you can list it any time, and you may sell—the market is extremely “hot” right now. Realtors across the board are describing the market in April of 2021 as “stupid”. Houses are selling for 30%, 40%, 50%, and sometimes over 100% their value.
However, if you can double the value based on the market, you can expand that even further should you invest in property renovation, getting the property more visible across a wider variety of buyers, and perhaps even changing the way much property equity is leveraged toward profit. Here we’ll explore four distinct property investment angles before the sale.
1. Consider The “Airbnb” Angle, And Cleaning Companies
Instead of selling entirely, why not sell 300 times a year for $250 and retain ownership? If you make your home an “Airbnb”, or a vacation rental property, you can conceivably pull $75k a year from it. That won’t be total profit. You’ll have to invest in agencies like Evolve Vacation Rental for management and clean it between guests. Still, pull $75 in profit after taxes, incidentals, listing fees, and expenses, and you’re looking at $22,500 profit.
The numbers may break down even better. Say you live near your property, and can eschew traditional cleaning agencies. Suddenly you can vastly expand profit on a vacation rental like this. If you can pull $30k a year out of a property as a rental after taxes, in five years you’ve earned enough to buy a new house. Or, you could purchase a new property, get it listed, and use it exclusively as a vacation rental. It can be a “turnkey” Passive Income Generator.
You own the property, get paid through the listing agency, and use that money to pay cleaners. Then you just sit back and let the money roll in. Property rented out 365 days a year at $250 a day is $91,250. That’s not quite feasible; you need at least a day of cleaning between guests. Book it for a week at a time per guest and get regular vacationers, though, and you can probably hit that 300 number after a year or two of management.
So before selling, explore all your options in terms of property investment to see if this is feasible or not—a vacation rental you own and operate could pay the mortgage on a new home. Even $22,500 a year is $1,875 a month, and that’s a pretty standard mortgage payment. One property could cancel out the other’s expenses. So rent out one property for a year, get a downpayment on your next one, then use the rental to pay its mortgage.
2. Exploring MLS Options For More Enhanced Visibility
A Multi-Listing service, or MLS, will put your property in front of millions for a small fee. Many different listing solutions can be leveraged toward moving a home faster. Especially given the present national situation, this is a wise move. People are moving out of the big cities into the small cities and buying houses “site unseen”.
One of the hottest markets right now in Florida, and if you go with an MLS service, your home will get in front of the eyes of the whole country. Now granted, the link from Forbes specifies south Florida; but think of it like a pitcher being filled with water from the bottom up. As property availability wanes in the south, national buyers will head northward and central.
Some of the primary buyers have deep pockets, too. They’re coming from New York City and Los Angeles. In either market, a house that, in 2020, would be worth around $100k in Florida was selling for $500k or more in those cities.
So if you can get your property in front of such buyers, it’s very likely you’ll be able to sell your Florida home for much more than it would otherwise command; even if it’s adjacent to the everglades in the state’s center.
3. Investing In A Home-Selling Group To Expedite Sales
Especially given how hot Florida’s market is, going with a home buying agency may net greater profit than ever because what you can ask for your home is higher than ever. Such agencies can afford to pay more than they would otherwise. Where before, you’d likely have property value undercut by a few grand, you might meet or exceed it now.
This is an especially considerable tactic if you’re looking to sell a Florida house quickly. Generally, such agencies purchase sub-par properties and move them on their own, often after sending contractors out to “beef up” the premises. Every agency is different, but one thing remains the same: you get your property moved lightning fast.
4. Redo The Interior – Invest In Home Improvement
One of your wisest investments before property sale is fixing the house up as much as you possibly can about your available budget. You want to repaint all the rooms that need it. Redo all the floors that need it. Fix any holes in the walls. Either repair or replace the roof, depending on budget. Install some new kitchen cabinets. Seriously consider landscaping.
Look at the attic of your home, look at the basement of your home. Is it possible for you to finish that basement, or redo the attic so it’s a usable room? Figure out everything you can do, and do it.
Assure you’re completing all the “honey-do’s” in the home. Also, consider outright refurbishment where appropriate. Done carefully, all these are fine pre-sale investments.
Optimizing Equity Potential Through Wise Investment. Redoing the interior of your home, and doing some exterior work like building a patio, represents a fine investment in your property. Investing in home-selling agencies can itself be a means toward swift property liquidation.
Exploring MLS agencies helps your property sell faster. Also, you might invest in the property as a long-term turnkey Passive Income Generator like an Airbnb, and use the proceeds to manage your next property acquisition.
Consider all the angles, and figure out which fits your situation. Sometimes you want to move a house fast, sometimes you’ve got time to sit on it. Act appropriately about what unique aspects of your home define your options, and you’ll notably optimize available equity.