- How to Price Your Investment Property to Sell Fast in South Bend Indiana
- How to Market Real Estate Investment Properties To Sell Fast
- How to Prepare your Investment Property To Sell Fast
It’s not always easy selling a property investment in Indiana, especially with the economic climate being what it is. This means your home could sit on the market for an extended period, falling into disrepair if you lack the funds to maintain it.
Some property investors have to accept lower offers because unkempt properties are losing market value. Most investors will price their property according to the CMA (Current Market Analysis), but this is not necessarily the way to go.
It may be better to come in slightly under the market value, to create a lot of excitement and activity when the house is first listed, and sell your home quickly rather than risk falling into neglect. Sadly, some affected investors are now having to sell at a loss.
Some property investors prefer to save on realtor commissions by selling their properties independently. While a professional realty like Pyramid Realty can advise and guide you, this article will take you through the process step-by-step and provide tips on how to price, market, and sell your investment effectively.
Typically, you will get approximately 30% more in value when you use a professional real estate brokerage and realtor.
This article will be broken into three sections: first, we will explore how to determine the right asking price for your investment.
Second, we will discuss how to market your property successfully and, third, how to ready your investment property for sale.
How to Price Your Investment Property to Sell Fast in South Bend Indiana
1. Start with a property value estimate
Getting a realist property value estimate is imperative. An experienced agent is worth their weight in gold with this. The market value is a deciding factor, but there are many other things to consider when setting your asking price.
You also need to consider the loan balance and the costs of selling your property, like the agent’s commission, administrative fees, and property taxes. These expenses will have to be paid out of the final selling price you set.
Perhaps you had invested in your property and now have extra features that weren’t there when you purchased the house. An experienced property management company or agent will know how to price your property.
2. Do a Comparative Market Analysis (CMA)
You must do a CMA (Comparative Market Analysis) to understand the market trend. This report is an in-depth assessment of the current property market generated. For example, if you hire an experienced agent from Val’s Management, your agent will provide you with an accurate CMA.
Alternatively, the homeowner can do a CMA on their own, however, a realtor can help provide a greater understanding of the value and volume of the market, and it also indicates possible customer segments, purchasing trends, the general economic climate, and industry regulations.
3. Undercut by 5% to 10% and try to spark a bidding war (don’t hesitate to cut the price after listing)
South Bend, Indiana, is a popular place to buy property because of its proximity to many universities and hospitals, and this is good news for sellers. The low risk nature of this real estate market because of lower prices is very attractive to investors. Additionally, the new train scheduled to be built between South Bend and Chicago has made this a market primed for investment. Pricing low to sell high is one of the basic bidding-war principles, attracting lots of attention and multiple showings.
While underpricing is frightening, an experienced real estate agent will know whether or not to take this gamble. If your property has outstanding features, then under-pricing becomes irrelevant because multiple interested buyers will (hopefully) keep pushing the price up.
4. Price your property for the online search tools
Remember that when potential buyers search for online listings, they usually specify their specific price range parameters. This means that for the sake of a few thousand dollars, you could miss a potential buyer.
For this reason, it is more feasible to list your house for $299,999 than for $300 000. It is also important not to be too specific with your price, for example, $321,799.
You can always put the price up after listing, but getting the initial attention of as many potential buyers as possible in South Bend is essential.
5. Learn from other sellers’ mistakes
An experienced agent will know the value of learning from other people’s mistakes. In this way, having a tried-and-tested agent will significantly benefit you as they have a wealth of knowledge gleaned from years in the field.
One of the biggest mistakes sellers makes overpricing their properties when listing for the first time. Another mistake is giving too much information. Let your property speak for itself, and answer questions when necessary.
Another mistake is expecting buyers to take you as they find you. Not spring cleaning and decluttering before showing your home is a huge mistake; first impressions count for a lot.
6. Be prepared for additional closing costs
Besides the agent’s commission and paying off the balance of the loan on your property, there are other closing costs to consider. Sellers can expect to pay a total of 2.83% of the house’s selling price over and above the realtor’s commission.
Here is a list of closing costs you will be expected to pay in South Bend, Indiana, when making a property sale:
- Title service fees (0.48%)
- Recording fees (0.01%)
- Buyer incentives (2%)
- Agent’s commission (5.66%)
These factors must be considered when deciding your initial market listing price. Val’s Management in South Bend will be able to advise you in this regard.
7. Understand what appraisers are looking at
Here is a list of what appraisers will look at when assessing your property:
- Safety features
- Additional unusual features
Additionally, appraisers will look at the house’s location for nearby schools and study institutions, tourist attractions, and other things.
8. Get an inspection report
Before selling your property on the market, you must get a compulsory inspection report. This ensures that the property is under its zoning code, among other things. It will also rule out things like:
- Structural damage
- Roof damage
- Plumbing leaks
- Missing insulation
- Toxic Mold
New technology allows a scan of your house, showing missing or displaced insulation behind the walls and ceiling. These scans can also show plumbing leaks inside the walls that aren’t detectable to the occupants yet.
9. Compare the square-foot cost of your property to other properties
Any savvy investor will make a square-foot comparison when buying a property in South Bend, Indiana. This is to get a general feel of what price is a good fit for the properties they are looking at.
Extra features, like a professionally landscaped garden, swimming pool, or patio, can considerably increase your price per square foot.
Comparing the square-foot price of your property to other properties in the same area gives the buyer an indication of how good a deal this purchase is.
10. Discover what a cash buyer would pay
Typically, it can take a while for the funds to be released after closing a property deal in South Bend. This is because the transfer documents need to be drawn up, and it takes time to work through all the red tape.
The bank will usually only release the funds after the Title Deeds have been transferred and all other paperwork completed.
For this reason, it is customary, but not necessary, to drop the price slightly for a cash buyer.
11. Find an agent with knowledge and experience
Using this information, you can conduct the selling process if you like. This will rule out the agent’s commission which can save you a pretty penny.
However, hiring the right realtor is often worth paying the extra 5.66% as they know how to save money on your other costs.
An agent with knowledge and experience will skim through your red tape process, leaving you to sit back, relax and wait for the money to come in.
How to Market Real Estate Investment Properties To Sell Fast
Now that you have gleaned an idea of the many variables that can impact the pricing of your investment, including appraiser considerations, additional closing costs, and comparative market analysis, we will move on to the most effective ways of marketing your real estate investment.
Using the correct strategies makes it possible to attract potential buyers’ attention and sell quickly. This section will provide tips for marketing your property to make a quick sale.
Savvy property investors know that there are certain essential factors to keep in mind if they want to ensure a successful sale.
12. Create a website
In these technological times, a real estate website is essential to your digital marketing toolbox. It helps with sourcing great seller leads and boosts your credibility.
However, creating a website can seem daunting, especially for those without a solid tech background.
Building a website is relatively easy if you know what to do. Here, we will guide you through the process step-by-step.
Choose your domain name
- Easy spelling – avoid hyphens and strange spelling. Keep it super-easy for any would-be lead to spell.
- Use a keyword domain – these make great lead-capture pages but don’t use them as your primary real estate networking website.
- Choose branding before keywords – keyword stuffing is not recommended. Instead, choose a domain name that resonates with your company name.
- Register your domain – This needs to be done as soon as possible. There are companies like GoDaddy who can easily assist you with this.
Install your site and choose a hosting company
- Install tracking scripts and website analytics as soon as possible – Tools like Google Analytics and Facebook retargeting are vital to savvy investors. The sooner you have these, the sooner you can start collating data.
- Hosting companies are pretty generic – Choose one that has excellent customer service reviews. You can change your hosting company at any time.
- Outsource to freelancers – who will configure your hosting and set up your website for a small fee. This means you can put your valuable time to use better.
Select a trendy design for your website
- Find examples – Put a link directory of some good competitor websites together and pass it on to your designer or team. Use these for inspiration.
- Buy templates – Using a template gallery like Wix is cheaper than building a website from scratch.
- Make sure it’s responsive – any template you choose should work well on the smaller screens of mobile devices and computers. People need to be able to view your content.
- About us – upload personal details and photographs.
- Contact us – make it easy for people to reach out to you.
- Introductory post – explain what you are about and who you are.
- How-to content – a good policy is to “teach first, then market”.
Social sharing icons
Following these guidelines will assist you in creating a successful and great lead-capturing real estate website.
13. Post on multiple listing sites
The more exposure you generate, the more likely you will get great lead captures and applications. Posting on multiple listing sites will convey more traffic to your listing than relying solely on your primary website.
Social media channels like Facebook and Twitter should also be part of your marketing strategy.
If you don’t want to create your website, you can still post your listings on other sites and generate lead captures.
14. Retarget Web Viewers with Property Images
This cookie hangs around in the background as the viewer engages in his browsing, letting you know what they viewed and what interested them. You can then send them a more personal and effective ad.
There are definite advantages to the retargeting strategy. Let’s take a quick look at these.
- Reach more prospects – retargeting lists allow you to connect with previous viewers over any device. Expanding these lists will grow your brand. You can do this by winning new prospects or lead generation through auto-targeting.
- Visibility – retargeting allows investors to remain in contact with viewers who have already left their site. Brand exposure and recognition generate trust, and you can create more conversions by targeting people who aren’t explicitly looking for your services through online advertising.
- Drive more traffic to your site – by previously retargeting viewers with your online ads, you can direct them back to your site.
- Increase conversions – with most websites, only 2% of viewers become customers on their first visit to a site. Retargeting is designed to convert the remaining 98% of prospects.
Don’t make the mistake of discounting the older methods of advertising. Let’s dive in and explore the effectiveness of good old-fashioned sms text messaging.
15. SMS Text Messaging
You may ask why text messaging is still effective as an advertising tool. Well, most people check their phones far more often than their emails – up to 96 times per day.
This gives you 96 opportunities to appear on their screens every day.
Other advantages are that it personalizes communication, is affordable, speeds up lead generation and conversion, and provides immediate value.
Retargeting previous viewers will reactivate cold leads, so using the sms strategy to target these cold viewers, who have previously shown an interest in your product, will improve your conversion rate.
16. Photographs & Videos
One of your best marketing tools is high-resolution videos, pictures, and 360° video house tours. Having an edited video of an agent showing the property is also crucial.
You may ask yourself why using photos and videos is such a vital part of the marketing strategy regarding real estate. Here are a few key advantages:
- Stand out – reinforce your brand to create more visibility. Drone photography will give you even more of an advantage.
- Save time – hiring a pro photographer can save you up to 10 hours of valuable working time.
- More profit – a recent Redfin report says that average homes sell for $11,000 above market value if they have professional videos and drone photography.
- More offers – great images attract plenty of attention on social media. This will generate more offers on your investment property.
- Sell faster – excellent quality photos will attract more interest from potential buyers, making for a faster sale.
The more visual your listing is, the more interest it will generate and the more offers you will get.
Did you know that 60% of consumers prefer watching a video to reading about a product? Combining video with an aerial drone’s ability to take shots and capture video from any angle will give you an edge over your competitors.
Prospective buyers like to see aerial shots these days. It shows them the surrounding area, the scenery, their future house from a birds eye point of view, and their potential garden.
The expense of an experienced photographer or videographer is not something to be lightly pushed aside. You can only benefit from someone’s expertise and save valuable time for more critical tasks.
17. Create a Virtual Staging
Virtual staging is simply a method that digitally furnishes a home using technology.
This is much easier than hiring a home staging expert to add decor and furniture to a home for showing purposes.
Virtual staging has numerous benefits as opposed to furnishing a house. Let’s dive in and take a look.
- Sell faster – according to a study by Coldwell Banker, staged houses sell in a quarter of the time unstaged houses take to sell.
- Bigger profit – on average, staged houses sell at 3 to 50% higher than the market value.
- Convenient – you don’t have to move any furniture around, and it’s much quicker to get your photos onto your listing than the traditional way.
- Affordable – prices begin at around $50 per image. You can also purchase professional photography packages.
- Flexibility and customization – the beauty of virtual staging are that, besides adding furniture and decor, you can even change the color of the paint or add digital window treatments.
Virtual staging can transform an empty house into a masterpiece or make a neglected garden look magnificent.
Use this technique to create a fantastic portfolio for your investment.
18. Promote Your Property on Social Media
A whopping 80,9 % of the American public uses social media. Let’s dive deeper and find out which social media platforms are most popular.[Image]
The above table is based on US data from 2022. From this, Facebook is the number one social media platform to advertise, with Facebook Messenger and Instagram almost vying for second place.
Here are some helpful tips to help you create a successful ad campaign.
- Determine your audience – as a realtor, the only way to narrow your audience is by area. Then you can decide which area to “specialize” in. For example, you could target first-time homebuyers or deal only with luxury apartments.
- Set your goals for your ad campaign – the most common plans are lead generation, listing promotion, and brand awareness.
- Develop a real estate marketing funnel – a marketing tool that describes how a viewer goes from the clicking stage to becoming a customer. A simple funnel only needs a landing page and an email sequence.
- Decide which real estate advertising method to use – take the time to try a few methods. Also, consider where your current leads are coming from; this might be an excellent place to start with your real estate ad.
- Create multiple versions of your ad – this is essential for an ad campaign. Test your ad against each other for a short period. Then pause the ones that aren’t performing well, and introduce new versions to test. This is called A/B testing.
You are missing out on great potential leads if you’re not using social media as a marketing tool.
How to Prepare your Investment Property To Sell Fast
Carefully preparing your property for the market will help you to sell faster. A professional property management company can facilitate repairs and ensure the property is in good condition.
You can streamline the process by preparing all the necessary documentation, such as contracts. This will increase your chances of making a quick sale.
19. Why hire a property management company to manage your property investment or rental?
- There are many benefits of employing a good property management specialist. Let’s dive in and take a look at the main ones.Finding and screening tenants – property management specialists have access to a special tenant database. This allows them to check up on the previous rentals of the prospective tenant and ascertain whether they’re a good risk.
- Handling maintenance and repairs – RTA requirements and giving tenants proper notice of entry can be a headache for a landlord. A property management specialist usually has a list of approved tradespeople to call on for any job.
- Collecting rent – your property management specialist will follow up on overdue rent and ensure the collection of rental income. They will also play the “bad cop” and save you the headaches.
- Handling evictions – you won’t have to go to the trouble of getting court orders to evict tenants. Your property management specialist will deal with all of that.
- Providing financial reporting – they will offer up-to-date financial reports so you can track how well your investment is performing.
Handling rental properties and investment properties is not just a matter of finding a tenant or making a sale.
There are many other factors to consider, and that’s why it’s better to hire a property management company than to try and go it alone.
20. Hire a professional photographer
Given the importance of high-quality, high-resolution images and 360° video footage, a savvy investor will hire a professional photographer or videographer to ensure the best visuals possible.
Professional photographers and videographers each have a unique style. You want to ensure their individual style and creativity match what you are looking for.
Requesting a portfolio of their work and customer reviews will give you an idea of the quality of work you can expect and their dependability.
21. Selling traditional rental property
Selling an unoccupied property is simple. The process becomes more complicated when there are active tenants involved.
If you have tenants under a month-to-month lease, these are the steps to take:
- Give your tenants written notice.
- Remind them to remove all of their belongings when they move out.
- Start the eviction process if necessary.
An early termination clause in the rental agreement allows you to break the lease under certain conditions, for instance, extreme neglect of the property.
If you have tenants with an active lease and no early termination clause, but you have to sell, then there is a different procedure to follow.
We will follow up on this procedure further on in the article.
22. Tax advantageous ways to sell a property
Certain ways will cause you to pay less tax when selling a property.
Let’s dive in and take a look at these:
Allows you to sell and purchase a property of equal or greater value while only paying tax after the exchange. You can defer paying CGT (Capital Gains Tax) until the deal is closed correctly.
Timing can create a lot of pressure with this strategy. Investors have 45 days to identify like-kind properties.
After that, they have 180 days to close the deal. Otherwise, the investor is liable for the total CGT amount on the original property.
Leverage Section 121: Primary residence exclusion
This IRS rule applies when an investor converts one of their investment rental properties into their primary residence. This can save you up to $500,000 in CGT.
Selling your primary residence allows you to exclude $250,000 of CGT if you’re single and $500,000 if you’re married and file jointly.
They must have lived on the property for two of the five years immediately before the sale, and there is no requirement that the two years be consecutive.
The deduction amount will vary depending on how long the property was rented out compared with how long it was functioning as your primary residence.
23. Property needs repairs
If your investment property needs a capital outlay for significant repairs, like a new roof or HVAC system, it may be more financially advisable to sell your property “As Is”.
You’ll probably have to sell at a discounted rate, but this could still mean less loss than investing more money in a property with deferred maintenance.
Selling at a lower price may still offset the expense of the repairs.
24. Honor your lease period, or give tenants ample notice to vacate
If you are selling an occupied investment property, and your tenants have an active lease, there are a few options you can explore.
- Wait for the lease to expire – if your tenants are paying their rent on time and sticking to the lease agreement, they have every right to remain on the property until the lease has expired. Simply don’t renew the lease.
- Pay your tenant to vacate – fixed-term tenants might be open to negotiation if there’s a cash incentive involved. Calculate an amount based on the rent difference and moving costs. You can even offer to pay their security deposit on the new place.
- Sell to your tenant – another option is giving your tenant the first option to buy, and if they can’t get traditional finance, offer seller finance. Selling to someone who already knows and loves the home makes the process even easier.
- Sell with an active lease – some buyers are happy to buy a tenant-occupied home with an active lease in place. The new owner can decide whether or not to renew the lease after expiration.
Sell through Val’s Management – Val’s will handle your rental and sale, including viewings and dealing with the current tenants.
25. Prepare All the Documentation
Trust is vital to any real estate transaction. Transparency generates trust, so it’s advisable to have all the documentation ready for your proposed buyers’ perusal.
Investors want to see stats, so ensure that your budget, expense sheets, and income data are readily available to prospects. You should also have the entire history of capital expenditure and the maintenance and repairs history close at hand.
If you want to sell your house in record time, Val’s Management is one of the best realtors you can find in South Bend, Indiana.
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