The resale of immovable property is a project requiring thorough preparation in order to increase your chances of profit and reduce the risks. Here are some tips to help you resell your property with an added-value.
1. Define the expectations of the investor
Identify the reasons which shall drive the future buyer to buy the property and prepare your sale. For instance, define whether the buyer wants to save on taxes, or wants to have rent the property with the possibility of purchase (Lease Option). Thus, you will know how to promote your property in line with the expectations.
2. Differences between a forecast and the actual context
If you resell your property immediately or very soon after purchasing it, the personal circumstances of the potential buyer, the real estate market and the applicable tax rules will remain almost unchanged. On the other hand, after 10 or 15 years, everything will have evolved and you will have to define the best way to obtain a return on the investment at that moment as compared to your personal objectives. For example, it will be necessary to update the new tax and financial data.
3. Establish a plan
You are not an property investment expert? No problem: just put together a resale plan. Do some research by asking real estate agents about the selling price, the environment, and properties similar to yours.
You might also want to forecast the time needed for this sale, based on the duration estimated for the work before resale and to complete the administrative procedures. As long as the property is not sold, it is your responsibility.
4. Always have a plan B
Also, in this kind of situation, it is essential to plan several go-to plans, because this procedure could be very long. It is advised to avoid relying on this as the sole source of income. As an example, a plan B might be renting until a customer buys the property.
Consequently, a well-planned property resale could happen without any trouble if you are well prepared.
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