Over the past decade, the Treasure Valley real estate market has benefited greatly from out-of-state investors. There are many factors to consider when cashing in on your investment property. In this video Andrea Pettitt, Realtor, and owner of the Pettitt Group at Group One Sotheby’s International Realty in Boise, Idaho provides some insight on whether or not this the time for you to sell your Treasure Valley rental.
“I’m Andrea Pettitt and we’re here today to talk about selling an investment property in Boise. The first thing to remember when selling an investment property in Boise is that it’s never too soon to reach out and talk to a real estate agent. In the investment property, it’s not unusual for me to talk to someone who owns a property occupied by tenants six months to a year before we’re actually going on the marketplace. Sometimes we’re creating a strategy for the current tenants lease situation. Sometimes we’re talking about improvements to the property and lining those up and scheduling them well in advance so that we know when we’re going to hit the market, what we need to do to be ready for the market, and how that impacts the tenants that are in place. Most of the time selling a rental property, a landlord is going to maximize their overall profits by selling the house vacant and staged and totally market ready.
Most of the time when I visit a property that has a tenant in place, the house isn’t sure ready, it’s not available for buyers to see quickly in the marketplace. Having a tenant in place creates an added layer to the transaction that ultimately creates stress for the buyer and a lower price for the seller at the end of the day. So we want to talk about that ahead of time. Sometimes I have landlords that don’t have the ability to cash flow a vacant property for any length of time. In those cases, we have to work with the tenant in place. We can make that happen, but again, the more time we have to prepare and the more time we have to think ahead about that process, the better off everyone is. Once we know what our timeline is, then we can work together to come up with a great plan to sell that specific property. Oftentimes, it might look like we have the tenants… we know what their move out date is, and we have already been in the property and toured it.
I will work often with property managers or with the landlord themselves to get in and see the property so that we can know what we’re doing in terms of cleaning and getting the house ready, maybe painting, maybe doing carpet, maybe not doing those things. Every house is a little different. Usually, we’re staging and we’re getting things going. We like to have a tight plan when we are working with an investment property in particular because we want to be able to get in, get everything done quickly and get that house on the market, because time is money when you’re selling an investment property. The longer that you are waiting for things to be ready to go on the market, that’s just money that you’re not earning from a tenant or closing the sale. So we want to maximize the profits and get things done as quickly as possible. When we’re working with an out-of-state investor, which happens a lot, communication is critical.
So I think it’s important whoever an out-of-state investor is working with to sell a property, to have an agent that is very tech savvy and comfortable with lots of communication. Oftentimes, we’re the boots on the ground that are making decisions for you, that are setting up, coordinating appointments for you, and we want to be in close communication so that everyone is always on the same page. When we work with out-of-state sellers to sell investment property in Boise, first of all know that the inventory that you are going to create by selling your rental property is so needed in our marketplace. We have a low-inventory situation right now and it is a sellers’ market, 100%, and the investor who can have a market ready property come on the market staged and ready to sell will sell very quickly. Our out-of-state sellers, we rely on them to communicate with us and we can do it any way that they want.
Some sellers are really hands-on and they want to be involved in every decision to get the house ready for the market and we can do that. Some out-of-state investors say, “Do what you need to do to make my house get top dollar,” and we will just take care of everything from there and offer a really true concierge service so that really we might have a conversation up front and then we’re closing, and in between there’s not a whole lot for that out-of-state investor to worry about. In summary, when you’re selling an investment property in Boise, it’s important to work with somebody who has experience selling investment properties in Boise. It’s a very particular type of sale experience and maximizing your profits are the most important thing. Do know that it’s never too soon to reach out. You can reach out to us at the Pettitt Group anytime. You’ll see our contact information here on the screen.
Also just know that we need your house. We need more houses to sell in Boise and you’re going to have a great positive experience in our marketplace if we do everything that we need to do to make your house shine. So thank you so much. I’m Andrea Pettitt with the Pettitt Group. Reach out to us on our website, buyandsellboise.com.”
Contact the Pettitt Group at Group One Sotheby’s International Realty at (208) 917-3330, or email us at info@buyandsellboise.com
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