Real estate is one commodity that many depend upon to get them through the rough times in their investment strategies.
The problem is that unlike stocks and bonds, real estate is not the most liquid of assets to turn into cash when the going gets rough and money is needed immediately. This may be the one large drawback when it comes to real estate. You cannot rely solely upon real estate to get you through the financial rough patches, as real estate is a very fickle market.
There is only one way in which real estate can truly be sold in a sluggish market such as the one that is rocking the real estate world at the moment and that is not always a way that is ideal for investors. However, by offering an exceptional value to consumers, you can almost always manage to sell real estate.
This is by far not the method of choice for investors. Investors are often encouraged to hold onto properties during the rough patches by any means possible (and ethical of course) in order to get the maximum profit, they are hoping to achieve in the endeavor. When this is not possible, make sure the property being offered and sold is the best value for the money that is currently on the market.
Play up the attributes of any given property and offer several properties for sell at once (assuming you own more than one). More importantly, offer different types of properties rather than one style of property. If you own a few rentals, a couple of vacation homes, time shares, and perhaps a corporate office building or two put one of each on the market and see which sells more quickly.
Another thing that must be considered in a sluggish market is that you cannot attach an emotional value to the price of the property. This is simply bad business. No matter how much sweat, tears, and blood have gone into the property you must realize that just as it is a business transaction for you, so it is for the person placing the bid. You cannot afford to run off potential bidders by becoming insulting or feeling insulted by their bids. Make a counter offer and see what happens rather than letting emotion rule the day. In a buyer’s market there will be low offers.
There are many who make livings (like most investors are attempting to do) by buying low and selling high. This means they will make an insultingly low offer the first time around to see where the seller stands. This doesn’t mean they are the scum of the earth only that they are in this for the greatest possible profit.
Do not take their actions or attitudes personally. They are not insulting you or the property only attempting to gain the most money in the process. Most businesses operate that way no matter what they claim.
Selling property in a sluggish market can be a disappointing and gut-wrenching process but it is often necessary for one reason or another. Unexpected expenses arise and money is needed when it is needed. This is after all why we make these investments in the first place, to be able to handle the unexpected twists and turns that life tosses our way.
Kirk Rickman, Victoria Carter, and Scott Horslin
TwoMoveYou Real Estate Century 21 Brighton
6 Ironwood Cres, Brighton, ON K0K 1H0