For the longest time, property ownership has remained to be a worthy investment and a source of income for many homeowners. For investors looking to grow wealth and investment portfolio, real estate and property ownership is the way to go. Property ownership is one of the few investment options that promise to give double and triple-digit tax breaks! But then again, it’s important that you diversify your investments such as own rental properties.
Now, when it comes to selling your property, there are gains to be made from off of it. But in its entirety, selling property isn’t as easy as it may sound. Various logistics must be factored in before both parties sign on the dotted line.
In this piece, we’ll be shedding more light on important things to consider before selling your property.
1. Selling Through A Realtor vs Self
If you’re looking forward to selling your property, the first thing would be to determine how to sell it. Of course, it does take a lot of work, but once you find the right method, it’s going to work out. But ultimately, it falls down on your final decision even with a plethora of selling options at your fingertips.
There are basically two options when it comes to selling your property; selling through a real estate agent and for sale by the owner (FSBO). But going by Invest Home Pro suggestions, there’s one more option that you may also need to consider. This involves selling your property to a home buying company.
Home buying companies eliminate the need to deal with realtors and in addition to this, it’s an option that closes fast. That said, let’s look at what each option entails:
- For sale by owner – When it comes to selling property by yourself, you’ll not incur the costs that come with hiring realtors. However, it’s a time-consuming option and one that requires a great deal of patience.
- Real estate agents – Selling your house by realtors is a worthwhile option. They have a network of potential buyers and they have extensive knowledge and experience in selling properties. The caveat, however, is that they must deduct a certain percentage from the sale as their commission.
- Home buying companies – With home buying companies, you can expect the process to be fast. In addition to this, you’ll not need to incur the costs of hiring a realtor, renovate your property, or wait till they find you a willing buyer.
Before enlisting your property for sale, it’s important to ensure that you have the right documents. The last thing you want is to have the sale delayed or held up due to lack of certain documents.
Among the documents needed when selling property include:
- A letter of allotment
- Occupation certificate
- Sale deed from the previous property owner
- Encumbrance certificate
- Tax receipts
- Society documents and no objection certificates
Most importantly, you’ll also need to inform your lender of your intentions to sell in case your property was built or bought on a mortgage.
3. Property Valuation
Property valuation can in simpler terms be defined as estimating the fair worth of property or asset. There are various instances when a valuation might come in handy; when selling or buying property, when insuring property, and during refinancing. One thing to note is that the property value appreciates with time. This means that all the prior valuations will not work in your current situation. You want to ensure that you have the current value at which your property stands.
To do this, you’ll need to hire a professional appraiser. Among the key elements included in property, valuation are the location of your property, the size of the lot, condition of the property, topography, and the architectural design of your property. Most, if not all real estate firms have these services included in their packages or as a separate service. Before hiring realtors to sell your property, ask them whether they offer valuation services. This way, you’ll not have to incur additional expenses.
4. Renovations And Improvements
You have the option of selling your property as is but then again, you also want to ensure that your property is attractive to prospecting clients. To add to this, refurbishing your property will significantly help in increasing your property value. But if the financial implications of refurbishing your property don’t add up, then the first option of selling it as it is can be considered.
Finally, if you had bought your property a decade ago and have developed it to the current market standards, then selling it will assuredly be a smart move. With property prices remaining on the high, there’s no better time to consider selling a property than now. But before you do, ensure that you have other investment plans in mind.
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