6 Questions to Ask Yourself Before Selling Your Investment Condo
Are you thinking about selling your investment condo? Here are six questions to ask yourself before deciding.
1) Do I need the money? This is an important question because if the answer is yes, then it’s likely time to sell and market conditions may play less of a role and the other five questions may not be as relevant. However, don’t forget that there are other ways of getting funds such as taking advantage of record-low interest rates to refinance or get a line of credit. If you are getting older and have another source of income (a pension or an inheritance), then it may not matter as much what happens with your condo.
2) Is the market going up or down? It’s difficult to predict the future, but it’s worth knowing what direction the market is going in. Make sure you know what you’re really selling and understand the current market for condos in your area. If prices are trending up, then you may want to hold on for a bit longer before listing your property. However, if prices are decreasing, then now might be a good time to sell because you can get more money from your investment than if you waited.
If you’d like a free estimate on your property’s value in the current market, get in touch with us.
3) What kind of tenants am I getting? Are your tenants stable and reliable? And is the property cash-flow positive? If so, you may want to consider hanging on to the property. However, if your tenants are not dependable and the property is running a deficit, then it may be time to sell.
4) What are the costs to sell an investment property? Have you calculated your net return? Be sure to account for all the costs including, commissions, taxes and other closing costs. After deducting these costs are you getting enough money from the sale? If not, can you wait until prices go up? Also consider talking to an accountant about strategies to mitigate taxes.
5) Is managing the property becoming too difficult for me? Depending on the distance from your property, it can be tricky. A good real estate investment is close to where you live, as it’s relatively low maintenance.
If you are finding it increasingly difficult to manage the property, now may be time to sell before things get worse. Before you decide, though, look into property management companies. If you can hire one of them and still remain cash-flow positive, it may be worth hanging onto the property.
6) Have your investment priorities changed? Maybe you’ve decided you need investments that are more readily converted to cash. Real estate is a very stable investment, but even with a quick sale it can sometimes take a couple of months before a deal closes and you get your money out. With interest rates at such low levels, and the stock market unpredictable, will you be investing your money in something that will give you a higher return? Here’s where you should speak to an investment advisor and make sure you are clear on your strategy.
If you’ve made the decision that it is time to sell your investment condo, then talk to us. We can help you understand the current market value and also give you ideas for how you can get the highest price for your sale.
Through our Property Concierge program, we can perform targeted updates that will add the most value and carry the cost of those until we sell. Meaning you are never out of pocket and you get more profit from your sale.