If you’re selling an investment property, it’s important to determine the right listing price – and the best way to do that is with your real estate agent’s help. This guide explains how a real estate agent can help you settle on a price that will get your property sold quickly and for the best price possible.
How Does a Real Estate Agent Determine the Right Listing Price for an Investment Property?
Your real estate agent will do a lot of legwork in determining the right listing price for your investment property – and it may be more detailed than you think. Your agent will use a comparative market analysis, or CMA, to figure out what buyers are willing to pay for a property like yours.
Comparative Market Analysis: A Real Estate Agent’s Secret Weapon
A comparative market analysis is a report that looks at comparable properties in your area that have recently sold, are currently on the market and were on the market but never sold. This report will help your agent determine a fair listing price for your property.
The CMA report takes into account things like the location of your property, the size and age of your property, any special features or amenities it has and the current market conditions. All of these factors will help your agent come up with a price range for your property.
After your real estate agent has determined a price range for your property, they will work with you to find a listing price that is within that range and that you are comfortable with. They will also help you determine any necessary repairs or renovations that need to be made before listing your property.
After your property is listed, your agent will continue to work with you to get it sold quickly and for the best price possible. They will hold open houses, coordinate showings and negotiate with buyers on your behalf.
What’s an Appraisal, and Why Does it Also Matter?
An appraisal is another tool that can be used to help determine the listing price of your investment property. An appraisal is an estimate of the value of your property by a certified appraiser. The appraiser will take into account things like the location, size and age of your property, any special features or amenities it has and the current market conditions.
While an appraisal is not required, it can be a helpful tool in determining the listing price of your investment property. If you decide to get an appraisal, your real estate agent can help you find a certified appraiser in your area.
How Do Buyers Use Appraisals?
After your property is under contract, the buyer’s lender will order an appraisal to determine if the agreed-upon purchase price is fair. If the appraised value comes in lower than the purchase price, the buyer may try to renegotiate the price with you. If you are not able to come to an agreement on a new price, the buyer may walk away from the deal.
It’s important to note that an appraisal is not the same as a home inspection. A home inspection is a physical examination of your property that looks for things like structural damage, plumbing and electrical issues, and mold. An appraisal does not include a physical examination of your property.
A Word on Home Inspections
Home inspections have nothing to do with the listing price on your home (unless you choose to have one done yourself, before you list the property, to find out what type of work you should do to make it more marketable). However, an inspection may have an impact on how much you’re able to sell the home for. That’s because buyers often use inspection reports as negotiating tools; they may ask you to lower your home’s price or give them other concessions based on an inspection report.
Are You Buying or Selling a Duplex, Triplex or Fourplex in Silicon Valley?
If you’re selling a duplex, triplex or fourplex in Campbell, Cambrian Park, Los Gatos, San Jose, Santa Clara, Saratoga, Willow Glen or another community in Silicon Valley, we’re here to help. Call today or fill out the form below to find out about our innovative marketing plans that can put your investment property in front of all the right buyers.
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