Whether you absolutely loathe your property, or you simply don’t want to manage it, you’ll need to pass it on to someone who’s willing to take on the responsibility.
Thankfully for you, people are always looking to pick up property – either to manage themselves, or to live in. Once you’ve gone through the process of getting your property ready to sell, it’s time to consider how you want to sell it.
There are several ways you can approach the selling process, and some of them are easier than others.
Selling your unwanted rental will come down to two main routes:
- Selling it the traditional way through a Realtor
- Or selling it to a Real Estate Investor
While you can do a “For Sale by Owner”, this is often more trouble than necessary. It’s especially hard if you’re looking to unload the property as quickly as possible. For that reason we won’t be covering that since it’s the least helpful & most stressful option.
For an in-depth article on For Sale by Owner sales, see this article.
One of the two options above will work for you.
You’re the only one who will know which is best for your situation.
1. Consider Your Investment
How much did you spend on this property in the first place?
If you purchased it, it was probably a large chunk of change.
If you inherited it, you likely spent much less.
Take that number, and combine it with the amount you spent doing repairs and general makeover projects to your property. If you had to hire outside help to come in and perform a service, such as painting or landscaping, add this to your figure.
Important: Compare the value of your home to the value of other homes in the area.
If a few quick improvements can significantly impact the value, it may be worth investing a little more time and money for a larger return. If your property is just about as good as it can be, you’re already in an ideal place.
You might find that you’ve invested more than what your property is actually worth. This feels awful, but it’s an unfortunate reality that you’ll have to come to terms with. If that’s the case, it can help to prioritize selling as quickly as you can before you find yourself in over your head.
Think of taking a loss as ripping off a bandage – get it over with quickly. Sitting on your property for too long will only cost you more money, and you need to keep yourself from sinking any further.
2. Think About Your Desired Time-frame
- What’s your current financial situation like?
- What are your life plans?
- Would you like to move out of state?
- Do you plan on using your profit for an important project, such as a new business venture?
- How do you feel when you look at the property?
- Are you at peace, or do you want to rip all of your hair out?
Since sitting on an unwanted property is costing you money, you have to think about how long you can afford to be tethered to that obligation.
If you’d consider yourself to be a burned out landlord, you don’t want to wait around too long. Your time-frame is shorter, and you want to move onto the next thing.
If you’re thinking in terms of weeks rather than months or years, that limits your options significantly. You’ll have a better idea of what you’re looking at by researching the local market.
3. Compare Your Time-frame to the Current Market
What’s the real estate climate like in the area of your unwanted property?
In many parts of the country, the real estate market is still down.
- How long have the houses in your area been listed?
- How many price reductions have they seen since their original listing?
Looking over the current situation of similar homes in your area will give you an idea of how long it will take you to go through the motions of selling your property through an agent.
Estimate how long showing the house, finding a buyer, and going through closing will take. While using a real estate agent to sell your property is a tried and true method, it does have a tendency to take a long time. It’s a drawn out process, and it moves in stages.
Not every potential buyer will be able to move through every stage, so if you decide do go this route, you’ll have to develop a backup plan in case the buyer falls through.
This is a sad reality with the state of the economy, and a more common occurrence than you might think. If you want to move fast, your best bet is simply going to an investor. You’ll forego almost ALL the hard work, and you’ll move your property faster – generally within a few days to a few weeks.
Basically, you’ll be selling the property to a professional landlord who has the resources to take over your rental.
4. Contact Local Investors
If the housing market in your community isn’t moving as fast as you’d like it to, you can find yourself stuck with an unwanted rental for longer than you’re prepared to handle. If people aren’t purchasing homes, they’ll still need to live somewhere.
Investors will be able to take over your property, so finding renters and managing it will become someone else’s problem. That’s the business they’re in, and the business you no longer wish to be in. They’ll give you money to take the responsibility you don’t want.
This is, by far, the quickest and easiest way to move through the process. Outsourcing it to someone else will get your house purchased quickly while simultaneously ending your commitment. You’re least likely to go wrong with this route.
If you’re in the Southern California area we may be able to help you.
Click on your county below to learn more about how we can help you in your area:
Or click here to learn how our home buying process works.
5. Keep a Cool Head
Don’t let the stress and resentment you feel toward your property affect how you handle selling it.
It’s perfectly natural to feel tired and overwhelmed, but your property is not a piece of paper you can crumple up and throw away.
Take a deep breath.
Remember that you’re on the road to washing your hands clean of the entire situation, and make sure you handle things the right way. Cover your bases and try not to let your feelings cloud your judgement.
Things will work out better in the end.