Now there’s some advice you wouldn’t expect to hear from a real estate agent – especially when YOU approach THEM to sell!
But it may be your best option.
Here’s a recent example:
The other day, a long-time client of mine called to list not one but TWO of his investment properties. Why? Two main reasons:
- He didn’t want to feel tied down by tenants
- He wanted to take the proceeds of the sale and pay off his mortgage
While this is pretty common reasoning – and being mortgage-free is often viewed as the ultimate real estate milestone – my client hadn’t considered the following:
- He would need to pay capital gains tax on the sale, lowering his net proceeds
- He would be missing out on future equity gains – especially in a hot K-W market
- He could hire a property management company @ 5% of monthly rent to take care of his tenants, rent collection, etc.
- He could refinance his two rentals…and buy another one!
In short: he may make tens of thousands of dollars more per year without being tied down by his renters – BY NOT SELLING.
And this isn’t the only instance where not selling may make more sense:
- Sometimes, it makes more sense to renovate your home than to pay hundreds of thousands more to get your “dream home”.
- Or, you may want to keep your small condo as a rental and leverage its equity to purchase another home.
The point: there is usually more than one option available to you in any given situation.
Instead of just taking the listing, your agent should delve deeper to understand where you’re at, the reasons why you’re considering a move, and understand where you want to be in 5, 10, 20 years.
Our job is to be knowledgable, present you with multiple paths to success, and help you make a fully informed decision.
And sometimes, that decision may be to not sell.