Selling Your Investment Real Estate in Jackson, Mississippi? – Your Investment Real Estate Broker Outlines the Key Steps Involved
Part of the commercial real estate investment world is the transactional arena where buyers and sellers come together at the bargaining table. The buyer wants to get a great deal for a fair price. The seller wants the same. With mutual goals, what stops an owner from selling and reaping the rewards of a profit? It might surprise you, but it has very little to do with finding the optimal time to sell. There are other issues you should address before listing your investment real estate in Jackson, Mississippi.
Remember to focus on the bigger picture when you are ready to sell. The Estes Group has the experience and knowledge to assist you in properly assessing your investment property. As a preferred investment real estate broker in Mississippi, we understand what is at stake and help guide you on your next best steps. Additionally, we are licensed in Alabama, Louisiana, and Tennessee, so geography is not an issue when you find a deal too good to pass up.
5 Timeless Tips for Selling Your Investment Property
Even in today’s fast-paced world, there are times when sticking to the tried and true will make your commercial property more sellable and the transaction much smoother. Here are five timeless tips to use when you decide to sell your investment property:
- Make sure all maintenance issues are addressed. There are a few reasons you should take care of any deferred maintenance issues, cosmetic work, and landscaping.
- It can enhance your property value because it gives the prospective buyer confidence that the real estate has been adequately cared for while you owned it.
- It can speed up the closing process by eliminating delays for fixing items required by the bank or appraiser.
- Buyers will often deduct the anticipated cost to cure these deferred maintenance items, which is usually much higher than the actual cost to fix.
- Look over all leases and renew any expired ones. Most buyers are looking for stable income streams. One way to reassure them is to renew all expired leases, as well as those leases set to expire during the listing period. Granted, you may not want to renew a tenant’s lease that pays well below the market rate. You may have to convert any month-to-month leases, or they may be assumed vacant. If you don’t, it may negatively impact the buyer’s view of the value and their Net Operating Income (NOI).
- Analyze your income and expense reports for the previous three years. Buyers will have questions, and you need to have answers. When you review your last three years of income and expenses, you can explain those times of rent loss and non-related property expenses that were not capitalized. These can include installing new HVAC units, carpet, or other non-reoccurring improvements. When a misappropriated expense is deducted from the buyer’s NOI, the value increases.
- Check into possibly using a 1031 tax-deferred exchange. Once you sell your real estate, you will probably be in the market to purchase another. You may face substantial capital gains taxes or hefty depreciation recapture. Discuss with your CPA or attorney well in advance to make the necessary preparations.
- Enlist the services of an experienced investment real estate broker. Marketing and facilitating the buying and selling of commercial investment properties require the talents and skills found in an experienced investment broker. Look for those with professional designations such as CCIM, SIOR, or CPM. Your buyers are sophisticated and informed, just like you, and you deserve to have someone who can maximize the value in your corner.
Work with Jackson, Mississippi’s Trusted Investment Real Estate Firm
Keep your legacy growing with the trusted Jackson, Mississippi investment real estate brokerage of The Estes Group. We have the knowledge and infrastructure in place to make your commercial real estate transactions run smoother. Let us help you with all your transactional, managerial, and developmental property needs.
Call us at 601-362-9633 or contact us online to discuss your real estate goals with a knowledgeable and experienced investment real estate broker.