How to Sell a Rental Property to a Cash Buyer
Rental properties are usually accompanied by short-term tax benefits and long-term growth, but due to the pandemic leading to a rise in property value, most landlords are thinking it might be time to sell. If interest rates do increase in the next few months, causing pressure to mount on home prices, in my opinion, landlords could have even more reason to get their properties sold. On the other hand, if property demands persist, prices will continue to increase no matter the interest rate.(1)
Besides the rise in property value and prices, other reasons can make you sell your rental property including loss of positive cash flow, shifting to another business/ investment, and even problematic tenants.
You’ll have two routes that you can take to sell the property. One, sell the rental property the traditional way through an agency, and two, sell it to a cash buyer. Option two is the better option. Read on to learn how you will sell the rental property to a cash buyer.
Steps to Take When Selling Your Rental Property to a Cash Buyer
Here are a few steps to take when selling your rental property to a cash home buyer;
Inform Tenants About Your Plan, If Necessary
If you have tenants with short to long-term contracts, it is advisable to tell them that you are planning to sell the property. So those who might not be willing to stay under a new landlord can plan to move. Those willing to stay should be ready for a change in terms from the new owner. Informing the tenants of your plans will help prevent issues that may arise after the sale.
Determine Property Value and Set a Realistic Price
To sell my house fast York at a fair price, you need to research to know its current market value. You can do that by checking the prices of similar rental properties that have been sold recently in the area. You can also consider the amount you have invested to build the property and add appreciation/subtract depreciation value.
Please note that setting a price will be essential. If you set an unrealistic price, no cash buyer will be ready to buy it. But you should also not set the price too low because you still want to make a profit from the sale. So be reasonable in pricing and your property will sell fast.
Find a Cash Buyer
There are many cash home buyers in Pennsylvania. You must research to identify the most trusted cash buyers to get offers from. Just read their customer reviews and you will easily know the ones to trust. Choose two or three cash buyers.
Get Offers from Several Cash Buyers and Compare
You now have 2 or 3 cash home buyers you are willing to work with. Contact and send them the details of your rental property. They will respond within 24 hours with cash offers. Please note that the cash offers will be slightly lower than the current market value of the property. Compare the offers and choose the cash buyer to sell to.
Negotiate for a Fair Price
To
sell my house fast Lebanon at the highest price possible you must showcase your negotiation skills. The cash buyer you choose will send one of their representatives to view your rental property and do a general inspection. You should convince them why your house is worth more than what they offered. Tell them about the number of tenants, the income it generates every year, recent renovations and upgrades done, and everything that will make them increase their cash offer. In the end, they will increase their offer. When you agree on the price, you will proceed to the final stage of the sale.
Close on the Property
The cash buyer has done many transactions like this before and they will be ready to assist you with the paperwork. Remember inspection and appraisal won’t be necessary when you
sell my house fast York to a cash buyer. So all that is needed is to prepare the paperwork, review it, and have it signed by you (the seller) and the buyer. Once everything is done, you will get a full payment for the rental property to close the deal.
Benefits of Selling Your Rental Property to a Cash Buyer
Here are a few benefits of selling your rental property to a cash buyer;
Speedy Sale
The main benefit of selling your rental property to a cash buyer is fast closure. A few steps are involved and the deal can be closed within a few days. On the other hand, if you sell the rental property the traditional way, time will be needed to improve the house and market it. More time will be needed for inspection and appraisal. To make it worse, payment can be held in escrow for weeks. So it is better to sell the property to a cash buyer if you want fast closure.
You’ll Sell As Is
When you want to
sell my house fast Lebanon to a cash buyer, you won’t have to clean, repair, and make necessary improvements. The buyer will purchase the property as is, but the price will be slightly lower than its market value. So even if your rental property is physically distressed or has inheritance, permit, and tax issues, a cash buyer will buy it as is.
Guaranteed Cash Payment
When you sell your rental property the traditional way, there is no guarantee that you will get full payments at closure. The deal can even fail at the last minute when the buyer fails to secure a mortgage loan. What’s more, the buyer can change their mind at the last minute after inspection and decide to look for a better property elsewhere. But when you sell your rental property to a cash buyer, you’re guaranteed to get full payment at closure.
Flexible Closing Timeline
Most reputable cash buyers ask sellers to choose a closing date. They are flexible and the closure date will depend on you, the seller. So when they view the property and you agree on the price, you will be asked to say when the deal should be finalized. And as a result, you won’t be inconvenienced in any way.
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About the author
Mathew Pezon
Mathew Pezon is the founder and CEO of Pezon Properties, a cash home buying company located in Lehigh Valley, Pennsylvania. With several years of experience in the real estate industry, Mathew has become a specialist in helping homeowners sell their properties quickly and efficiently. He takes pride in providing a hassle-free, transparent, and fair home buying experience to his clients. Mathew is also an active member of his local community and is passionate about giving back. Through his company, he has contributed to various charities and causes.
