3 Easy Steps to Selling an Investment Property

Believe it or not, the most stressful part of real estateis a sellers market, on the other hand, you might be
investing is making a sale. During this phase of theable to fetch more than the market value of the
investment there are so many things that can goproperty.
wrong, and your profit depends on making a smoothOnce you have settled on a price, you need to market
and quick sale. While most sales do go throughthe property. This involves advertising the property and
smoothly,the uncertainty and anticipation can keep youshowing it to perspective buyers individually and at
worrying late into the night. This is especially true if youopen houses. During this phase you should also
choose to bypass an agent and sell your property oncontact your attorney to draw up the necessary
your own.purchase contract forms. This purchase contract will
A brokerage agent does do a lot of leg work during aneed to be signed by you and the buyer once you
sale, but all of it comes at a cost. Hefty brokeragehave negotiated an offer.
commissions turn many investors off of the idea ofAfter you have negotiated an offer, the real work
using an agent and onto the idea of selling the propertybegins. Now it is time to close the deal. To do this, you
themselves in the hopes of increasing residual income.will need an escrow company to perform the closing.
If this sounds like something that you would like to do,This is the time of paperwork as you will need to
follow the following steps for selling your investmentprovide the buyer with disclosure statements and he
property.will need to provide you with a loan commitment letter.
The first thing that you need to do to make your firstInspections are also performed during this time and a
sale in real estate investing is to calculate the askingtitle search will be completed by your escrow
price for the property. You can do this by hiring acompany. Next, you will need to meet with the escrow
professional appraiser to price the home or bycompany and buyer to sign the paperwork, pay closing
checking the sales prices of comparable homes in thefees to the escrow company; pay off the mortgage;
same area of your property. This is normally done atand pay or put aside any taxes owed.
the court house by comparing similar recent realAs you can see, the closing phase is the busiest time
estate sales prices within a few miles of yourof selling your first property in real estate investing. But
property. You should also take into consideration theit is also the most exciting. This is where all of your
current real estate market. If the market is a buyershard work pays off and you get to walk away with
market, you will probably have to lower your price. If itthe profit.