The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: Txtriathlete on January 16, 2017, 07:08:07 PM
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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.
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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.
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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.