Everyone who finds themselves dealing in investment property comes to it in a different way. For some people, it was an old and beloved home they couldn’t sell so they kept it. Others inherited property from family and saw an opportunity. Still other people look at investment real estate as a second business and a potentially steady stream of income.
Most people don’t keep their investment properties for decades upon decades. There comes a point when it’s time to sell off and move on to something else - whether you want to put your money elsewhere, buy more properties, or cash out. If you’re not sure whether you’re ready to sell or not, take a look at this list. It may be time to put your investment property on the market.
To stay competitive, you’ve had to lower the rent for your property which puts less money in your pocket.
The rent you collect barely or doesn’t cover your costs for the property, insurance, taxes, or association fees. You’re spending money instead of receiving it.
Market prices have stabilized and there’s no additional value to be gained in your property.
Your property is older, and the value won’t increase without significant renovations. You’d rather not go to all that effort and expense on this particular property.
New construction in your area is keeping existing home values stable or lowering them.
Market values in your neighborhood have topped out, and there are no furthers gains to be had in this property.
You want to reinvest in a new property that has the potential to increase in value and equity over the next few years.
You feel your money could be better invested in other ways in the short-term.
You’re ready to cash out and use the funds toward your retirement or other plans.
Plans change and so does the real estate market. Investing in property is a big decision and might be a personal one, but knowing when to cash out and sell needs to be a business decision. Think about how much you’re spending to maintain ownership and what you’re currently gaining in return. Whether you want to move on to a property that has room for increased value or you want to do something different with your investment funds, now may be the time to sell your property.
The Naples market is currently great for sellers. A property that is priced well, staged beautifully, and marketed properly will receive strong offers and get to the closing table quicker than properties that don’t stand out from the competition.
If you want to know more about the market and how your investment property may do in today’s real estate market, let’s talk.