When you invest in real estate, you gain access to some key advantages. Real estate is more tangible than other high-value investments: you can walk inside and interact with it. Luxury properties also tend to appreciate over time. Plus, when you invest in real estate, you can use rental income to cover your costs and build property equity. That’s why investors in places like The Hamptons and South Florida often receive such high investment returns.
If you're looking for strategies that can help you maximize your ROI and sell investment properties for a better profit, check out these insights courtesy of The Experience Team.
1. Choose the right property when you invest
If you know that you're buying an investment property rather than one you and your family intend to live in, what you look for in that property might change dramatically. Instead of looking for a property that will fit your unique needs, you're looking for one that will suit the needs of local renters and eventually entice future buyers.
Depending on your priorities, our agents might steer you toward:
- A property that will be relatively easy to customize to the needs of a specific renter or buyer
- A property with a convenient location near local amenities
- A property located in the best local school district
Or all of the above. As a prospective buyer, you have everything to gain by understanding the local area. Choosing the right property from the beginning of your investment home search can make a big difference in the ultimate return on your investment. Our agents have a track record of consistently recommending the best properties to investors like you.
2. Screen renters carefully
When it comes to your property and its tenants, it's essential to be thorough in your screening process. Your ideal scenario involves renters who will treat your property well, ultimately safeguarding your investment. While some upgrades may be necessary between tenants, like fresh paint, floor improvements, or appliance replacements, having responsible renters typically results in lower maintenance costs in the long run. That’s why we recommend conducting background checks and reference checks.
3. Hire a real estate agent with experience in investment properties
An agent experienced with high-end properties can ease every phase of your investment process. In a nutshell, your real estate agent serves as a guide to the local market. With the proper guidance and support, you can learn everything from what the market offers to what homes typically go for in your local area.
Because luxury real estate has higher stakes, you need your agent to do more. The best agents, like those at The Experience Team, are experts in the art of negotiation. They can also find unique and unlisted properties in highly sought-after areas like The Hamptons. And if you want to increase your property’s value, we can recommend specific ways to do so.
4. Determine what upgrades the property needs
Even after your up-front investment to purchase a property, you still stand to gain from further investments — home upgrades. That applies whether you're gearing up to fix and flip a home, selling a property you've been renting out, or initially acquiring real estate.
As you know, there is a wide range of possible home improvements — everything from the roof to the flooring is in play. Some upgrades are straightforward, while others may not immediately come to mind.
This is where one of our friendly real estate agents can be a great ally. We’ll discuss options such as enhancing the outdoor living space, adding an extra room, finishing the basement, or taking on larger-scale improvements that could boost your property's selling price. Ultimately, nearly all homeowners stand to benefit from high-ROI projects.
5. Set the right asking price
The price you list your property might not be the final selling price. In a red-hot market, you could receive offers beyond your initial asking price as eager buyers compete for your home. Conversely, negotiations could lead to a lower selling price in a buyer's market. It's a good idea to chat with your trusted real estate agent about setting the right listing price and discussing your bottom line in case you receive an offer from a potential buyer.
Several factors can go into determining your asking price, including:
- The asking price of other similar properties in your local area
- How quickly homes are moving in your local area
- Features and amenities you have added to your home that may increase its value
When working with The Experience, your real estate agent will ask about your motivation for selling and how quickly you need to make a sale. Your priorities will have some bearing on the optimal listing price.
6. Sell at the right time
The timing you choose can significantly impact the final selling price of your home. When the market is hot, you might experience a quicker sale and higher offers from eager buyers. Conversely, during market slowdowns, your property may stay listed longer.
Moreover, the season you decide to sell can also play a significant role in the final price. Some times of the year witness faster property sales than others. For instance, families looking to settle before the school year starts often express more interest during the summer months. As always, consult your agent to determine the best possible course of action.
7. Focus on curb appeal
Many buyers will start forming opinions about a property before they enter the front door. They look at the property's appearance: the lawn maintenance, how the outside has been taken care of, and even whether some outdoor decorations or flowers help brighten the overall appearance. If you want to improve your odds of making a sale at a high return on your investment, keep up with outdoor maintenance and make the property look its best.
Place your investment property on the market with an experienced real estate team
If you're ready to place your investment property on the market, The Experience Team is here to help. The Experience is a tri-market team with access to the premier luxury listings in and around Palm Beach, The Hamptons, and South Florida. Our agents can take you through the details of purchasing property and living in this area, including gaining access to extravagant, exclusive communities.
Drawing upon decades of combined experience and billions in collective sales, realtors at The Experience Team know these areas, and they know luxury living. Reach out to an experienced professional at The Experience or search for homes now.
