Author Topic: Selling my rental - how to value?  (Read 580 times)

Txtriathlete

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Selling my rental - how to value?
« on: January 16, 2017, 07:08:07 PM »
I'm planning to sell a house in AZ that is currently renter occupied. I was advised by a friend who manages rental real estate (in TX) to advertise it to leasing agent realtors in that part of AZ - apparently they have a network of investors they work with.  I'm selling it because we live in South Dakota and I'm tired of long distance landlording. I have no clue how to value it - does it make a difference that it is occupied - i.e. does the cash flow matter? I could sell it outright but the tenants have been there for 8 years and really want to stay, so I hate to force them out if I don't have to.

Another Reader

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Re: Selling my rental - how to value?
« Reply #1 on: January 16, 2017, 08:48:24 PM »
The highest price you will get for the property will be from selling it to an owner occupant.  You will have to discount the price to sell the property with a long term lease. 

I would NEVER allow a leasing broker to sell the property.  They will want to sell it at a significantly discounted price to another of their management clients or buy it from you themselves.  They often have a poor idea of market value anyway, as sales are not their main business.

In your shoes, I would give the tenants plenty of notice and turn the house over to a competent resale agent with contractors on speed dial when they move out.  You will get a much better price for the property.

Drifterrider

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Re: Selling my rental - how to value?
« Reply #2 on: January 18, 2017, 11:35:08 AM »
The best way to properly value real estate is to have a Realtor do it.  One who knows the market.  You want to know the "selling" price, not the "listing" price.