Buying an investment property is only the beginning of what is hopefully a long and profitable adventure. If all goes well, you’ll enjoy a steady flow of passive income over the years. In addition, your net worth and equity will grow as your property increases in value. Even with fluctuations in the market, real estate values nearly always rise!
At some point, you may decide to sell your investment property to move on to something else or cash out of the market altogether. As real estate agents in the Guelph and Tri-Cities area, we are often asked, “When is the best time to sell my rental house?” The answer will depend on numerous factors. In this post, we’ll explore some of your options.
Investment Properties Are Different
Generally speaking, the spring is the busiest time for those buying or selling a house for their primary residence. Buying for investment purposes is different, however. Now, January and February tend to be the busiest months, in addition to the back-to-school season.
In Guelph, these guidelines hold true for a reason. These are the most popular months for parents to purchase a house for their children who are going to the University of Guelph. They like to buy in early winter because it gives them time to lease out the units before most student leases begin on May 1st.
Are you looking for the best time to sell your primary residence? You can learn more on our related post, When Is The Best Time To Sell A House?
The Market Is Nuanced
Generalities aside, your situation is unique, and may call for more personalized guidance. Buying and selling conditions often change, and the situation can be different for investors than for someone selling a primary residence.
For example, if you’re selling a house that has been converted into a student rental, the time to sell might be now. But the market may be less favourable if you’re selling a condo or family home. Different neighbourhoods can also be experiencing varying levels of competitiveness. You might receive multiple offers in one area, while a house 20 minutes across town takes much longer to sell.
These variances are why it’s essential to work with an experienced real estate team who knows the ins and outs of the Guelph market. Getting the best possible results from your sale largely depends on how much inventory is available compared to how many investors are searching for a new property.
Understanding the market is always helpful, whether you plan to buy, invest, or sell Guelph real estate. The posts below will help bring you up to speed:
- Common Clauses & Conditions in Real Estate
- Types of Offers and What They Mean
- A Complete Guide to Real Estate Investing in Guelph
Getting your timing right can be the difference between earning a decent return on your investment and achieving a record-breaking sale. The only problem is that it is also easier said than done. Not even the most well-informed experts can predict the market with any accuracy. That said, it often surprises investors that the timing may not matter as much as you realize.
Your Personal Goals Matter
Do you intend to buy a new property after yours sells? Achieving that record-shattering amount also means you’re probably buying in a competitive market where you may have to offer over the asking price to secure your next investment. On the other hand, selling at a price lower than you’d hoped can actually work out in the end because you’ll also be buying in favourable conditions.
If you’re cashing out of your property to fund your retirement, then earning the highest amount possible is essential. Since you can’t know for certain whether prices will rise or fall during the short term, it’s best to focus on what you can control.
A Selling Strategy for Any Market
An experienced real estate agent will help you develop a strategy to maximize your return regardless of the market. Selling any property successfully takes a great deal of thought, analysis, and thorough planning. Here are just a few considerations before your listing goes live:
- Who will your buyer be? If your most likely buyer is another investor, you’ll want to showcase the income and equity potential your property offers. If it’s a residential buyer, you’ll want to present a beautifully updated, meticulously clean home.
- Understanding the current market will also affect your marketing strategy, where you advertise and the type of people you intend to reach.
- Most of all, a compelling price point is essential. Not so low that you sell your unit for less than you should, but not so high that you frighten off potential buyers.
The bottom line is that you should, if possible, sell your home during times of low inventory and high demand. However, there are always opportunities in other markets if you work with a skilled real estate agent who knows how to capitalize on them!
Do you want to know what your investment property is worth in today’s market? Get in touch today at info@gowylde.ca or call 519-826-7109 to start the conversation.
