Home : Commercial Real Estate 101: 5 Ways to Sell an Investment Property in a Tough Market

Commercial Real Estate 101: 5 Ways to Sell an Investment Property in a Tough Market

Posted by Tina Merritt on 2/17/2009 at 10:23 AM
Posted in Commercial Real Estate

While we are constantly hearing in this real estate market, "It's a horrible market for sellers", the truth is, the market may only be unattractive for unreasonable real estate sellers.

"Simply stage" your vacant real estate investments. Add color to the bathrooms with shower curtains, towels and rugs. Offer an inviting kitchen with some towels, a cookbook and a couple of wine glasses. A bowl of fake fruit can make a boring countertop look more interesting. A cafe table and chairs work great in adding depth to a room and a few attractive silk plants can add a much needed splash of color. Empty bedrooms have a tendency to look smaller than they actually are. Using a single or double air mattress on top of some boxes, make up a bed to show how furniture can be placed.
Contact a knowledgeable mortgage lender to create financing flyers unique to your investment property. These flyers should offer various loan programs and show potential buyers how affordable your property can be for them. Make sure the flyers also mention the $7500 homebuyer tax credit (if appropriate for the property) and also any specialized loan programs offered in your area (such as state-sponsored downpayment assistance, interest rate buydown or energy-efficient programs).
Know your competition and keep your eye on them. Price your investment property $100 below the lowest priced comparable property - that will almost guarantee your property is viewed before the others because it will show up first on the list. Take the time to view your competition if possible and make sure you look better than them. Analyze your competition regularly to make sure you remain competitive.
Offer closing cost assistance. Buyers in this real estate market are scared to part with their cash (if they even have any). Approximately 3% of the sales price should cover the buyer's closing costs. If there are 8 other properties just like yours on the market, offer a flat screen tv, 6 months of condo dues or some other perk to set your property apart.
Have your property professionally photographed. Pictures are the first impression for the 85% of buyers who start searching on the internet.

Tina Merritt is an 11 year veteran Real Estate Agent and Trainer based out of Virginia Beach, Virginia. She holds a degree in economics from Virginia Tech and post-baccalaureate from Virginia Commonwealth in real estate and land development. As an avid social networker and internet marketer, Tina helps real estate agents, loan officers and affiliated industries embrace technology. As a real estate agent, Tina primarily deals with marketing and selling properties deemed "hard to sell" and also works with real estate investors helping them build and/or liquidate their portfolios for maximum profit.

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10 Comments

Posted by member1924382 on 02/17/2009 1:01 PM

Hi Tina!

It's so nice to a Trulia trainer on the Trump Blog. Way to go Tina!

Pricing is surely one of the if not the most important aspect to moving property. Price it right from the start, from the beginning.

Without photos, your property has a high likelihood to be glanced over......The more photos the better.....

Best,

Rudy
Social Media Guru at Trulia.com

Posted by member1922183 on 02/17/2009 3:50 PM

I like what you had to write about staging...Selling an empty property is extremely difficult even in the best of times. You need to have your homes professionally staged in order to get interest. If someone is still living in the home, most often the staging involves removing clutter from the home.

I would also add that if you are a real estate investor and you were able to buy the home below market value, there is no need to try to sell for top dollar. Set the price so that it will immediately capture the interest of potential buyers in the area. To often investors try to sell at top dollar and end up losing money because they have to pay the mortgage and other holding costs for several months. If you give a good price up front, you will not have to hold the property as long, thus decreasing your expenses and hopefully increasing your profits.

Cheers,

~ Ross Treakle
http://RossTreakle.com

Posted by member1924519 on 02/17/2009 3:51 PM

Tina,
What a wonderful article! It was very informative and interesting. These 5 tips seem simple and make me wonder why other agents aren't doing this! This is why you're the best!!

-Sarah

Posted by member1924523 on 02/17/2009 3:52 PM

Right on Tina! I hope to use your suggestions when selling a rental property later this month. Great article - keep these insights coming!
Kim

Posted by member1924533 on 02/17/2009 4:04 PM

I am a real estate professional of 37 years. You are greatly admired & my fantastic agent Tina Merritt has brought us into the Computer age of marketing. Tina is a great lady. I am a mini Geek thanks Tina. Jan

Posted by Business 2000 Foundation.com on 02/18/2009 5:54 AM

A very good article!

All great tips! We noticed the closing costs catch a lot of people. Why not do a differnt loan amorization schedule with the closing costs. Maybe with the lenders. Some do.

In a tough market people need help and just nead some assistance. Investors are looking for great buys...but they get too greedy when they sell and then it kills the deal. Create a more-user friendly schedules for the closing costs schedules. Sell a great deal for all parties!

A web-design may also help attract your target buyers...and high-light your expertise.

A very good article!

Posted by member1925271 on 02/18/2009 11:01 PM

Smart article! It is extremely important to have vacant properties staged, as it can bring warmth and personality.

Posted by member1926692 on 02/23/2009 3:55 PM

Every so often an opportunity arises that can help you sell, and it is important to recognize it and be willing to try new ideas. One example of failure to be open is the manager at Trump Towers Las Vegas. When we offered to feature the hotel and condos for free as the backdrop of a series of Youtube videos, we were blown off. We included links and attachments to show videos done at Mandalay Bay, and also to verify the celebrity of the spokes model (who subsequently was voted a Top Ten Internet Model 2008) and was told by the manager she can't open attachments and that was it.
I am sure Mr. Trump would have at least considered the offer, even if he decided against it but he never got the chance to hear about it. The loss is based on hiring people who are not innovative and willing to try new things. The hotel now charges $89 a night on weekdays and $169 a night on Saturday night, and it has been said you could shoot a cannon in the lobby and not hit anyone.
The positive side is that this offer is still open. The Las Vegas project is beautiful and some free advertising couldn't hurt (the spokes model gets about a half million hits a month on her site and is a Youtube and BlogTv and BlogTalk radio partner).

Posted by member1798092 on 03/02/2009 7:06 PM

Tina congrats on working with the Trump Blog. Of course this is all great advice. Proper pricing and marketing are still the top two things that are going to get any property sold.

Bill Gassett
http://www.massrealestatevoice.com

Posted by member11000083 on 08/04/2009 9:39 PM

You article is strong in my opinion because it points out the need for attention to detail. Also, your comments highlight the often overlooked perspective of getting inside your competition's head, or customer's head, and so on.

We've built our business on providing service that isn't otherwise available in the business. And, expecting to be paid only if we produce results.

Blake Ratcliff
The Apartment Guy
www.apartmentmarketingsolutions.com

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