Selling an investment property is sometimes necessary. Maybe you need some cash and you know the market will support the asking price you want – or an asking price that’s even higher. Perhaps you want to invest in something else.
As Long Beach property managers, we’re always encouraging investors to buy and hold their real estate, especially the rental properties in their portfolio. That doesn’t mean you’ll never sell. When you do, make sure you’re selling at the right time and for the right reasons.
We see some common mistakes when people are selling their Long Beach investment properties. Here are some of the errors that really make us cringe.
Selling Too Soon
Selling too soon robs you of equity, rental income, and long term appreciation gains. You’ll earn some good money in the short term, but you’ll be losing a valuable asset that’s only going to be worth more the longer you hold it. It may not seem like you’re losing money, but when you look at the big picture, you are. A buy and hold strategy is the most profitable strategy for building wealth with real estate. The longer you hold your property, the more you’ll earn when you do sell. Don’t make the mistake of selling on a whim or because someone makes an offer or because the market is hot.Making an Expensive Sale
Another mistake we see all too frequently is investors who don’t budget for the costs associated with selling a property. You’re likely to anticipate the commission that you’ll pay your real estate agent. But, there are other costs to consider, including:- Repairs
- Cleaning
- Closing costs
- Buyer concessions
- Tenant relocation
