When you sell an Austin investment home, the ideal time is to sell when the property is vacant. Though this means losing money on rent, you’ll be saving money in the long term and increasing the likelihood your investment home will sell. Here are the dangers of selling a tenant occupied investment home.
Tenants Make It Difficult to Show Property
Here are some of the issues we run into on a daily basis when we show homes with tenants.
- Tenants refuse to let a buyer see the property
- Tenants usually are abysmal house keepers when the property is for sale
- Tenants that don’t crate their pets during showings, especially large dogs
- Tenants that don’t clean up after pets
- Tenants who stay in the house uncomfortably staring at the potential buyer
Consequences of Uncooperative Tenants
You may think this is a worst case scenario. But, with all the homes with tenants we’ve seen over the years, I can only name a few where one or more of the above issues were not present. No matter how nice your home is, most buyers can’t see past these things which means they will choose another home to buy.
90% of People Can’t Visualize Potential
Only 10% of people can visualize the potential of a space. That’s 90% of people who won’t be able to see past the piles of dirty underwear on the floor, dog poop in the hallway and week old dishes on the stove. They won’t see the brand new kitchen sink or the stainless steel appliances or fresh paint on the walls. Most will take one look at the disaster and run in the other direction.
Even the Best Tenants Can Be Uncooperative
The truth is most tenants don’t want their home to be sold. They like living where they’re living and feel like they’re being put out. Even the best tenants have been known to make it difficult for buyers to tour the house.
When It Might Be Ok to Keep Tenants While Selling
If your investment home is in a largely tenant occupied area, its likely another investor might purchase your home. In that case, selling your home with a tenant already in place may work to your advantage. But, only if they can keep a clean house and make it reasonably easy for someone to see it. An investor who comes into a disaster after having to wait 2 weeks for an appointment is going to see problems in his future. If you have any doubt, wait to sell until the tenant’s lease has expired. No tenant is better than a bad tenant.
Need to Sell a Tenant Occupied Home? Offer Incentives
If you have to sell a home with tenants, talk to them and paint as realistic a picture as you can. Then, offer them an incentive, like a reduction in rent if they cooperate through showings. Get them on your side and you’ll have a much better chance of selling your home fast.
Need to Sell Your Home Faster and for More Money?
We know how today’s buyers buy and have implemented the best home selling system in all of Austin. Check out our Austin Home Seller program to find out more. Then, call us at (512) 827-8323 or email us at info@11OaksRealty.com to schedule a no obligation consultation.
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