If you’re an investor who owns a rental property in Georgia and is ready to sell, there are a few things you need to consider before putting your property on the market. Selling a rental property in Atlanta can be a complex process, but with the right knowledge and preparation, you can maximize your profits and minimize your stress. In this post, we’ll share seven things you need to know about selling a rental property in Atlanta.
1. Understand the Market Conditions
Before you decide to sell your rental property, it’s important to understand the market conditions in Atlanta. Is the market currently in favor of buyers or sellers? What is the average time it takes to sell a property in your area? As of mid-November 2023, if the property is priced right, it can still sell quick but we are in an almost in-between market as buying has slowed down a hair. What are the average home prices in your neighborhood? This can be found by running comps over the last 6-8 months. Understanding the answers to these questions will help you set realistic expectations for your property sale and help you determine the best time to sell.
2. Consider the Tax Implications
Selling a rental property can have significant tax implications, so it’s important to consult with a tax professional before making any decisions. Depending on how long you’ve owned the property, you may be subject to capital gains taxes. However, there are also some tax benefits to selling a rental property, such as being able to write off any depreciation you’ve taken on the property. Investors we have worked with in the past may even opt to do a 1031 exchange wherein one has a set amount of time to take the profits from selling one property to roll into a like property to avoid paying taxes. Once again, consult your tax professional for more information.
3. Determine the Value of Your Property
Determining the value of your rental property is a crucial step in the selling process. You can start by researching recent sales of similar properties in your area. You can also hire an appraiser or work with a real estate agent to help you determine the value of the home if you’re interested in selling a rental property in Atlanta. Keep in mind that the value of your property may be affected by factors such as the condition of the property, the location, and the current market conditions.
4. Prepare Your Property for Sale
Before putting your property on the market, it’s important to make any necessary repairs and improvements to make it more attractive to potential buyers. This may include painting, replacing flooring, updating appliances, and landscaping. You may also want to consider staging your property to make it more appealing to buyers. You don’t have to fix up the home if you don’t have the time or money to do so. However, you will see a better return on your money if you fix it up vs. selling a home with needed repairs and maintenance.
5. Find the Right Real Estate Agent
Working with a real estate agent who specializes in selling rental properties in Atlanta can make the selling process much smoother. Look for an agent who has experience working with investors and who understands the local market conditions. They can help you set the right price for your property, market your property to potential buyers, and negotiate on your behalf. Or better yet, work with a professional buyer such as ATL Cash Home Buyers who can buy the property outright, allowing you to avoid the MLS altogether. Plus, we will make the transition as simple as possible if you have tenants. If you’d prefer to go through an agent to try and get a better profit, Chris Hassler with ATL Cash Home Buyers is a licensed REALTOR® with Atlanta Communities and will gladly answer any questions you may have.
6. Consider Your Tenant’s Situation
If you’re selling a rental property that is currently occupied by tenants, it’s important to consider their situation. You may want to give them advance notice of the sale and provide them with a timeline for moving out. You may also want to offer them incentives, such as a reduction in rent or help with moving expenses, to make the transition smoother. At the very least, see if they are flexible in their lease terms so you can relay this information to any potential buyers. The more flexibility you have, the more offers you may receive on your home.
7. Be Prepared for the Selling Process
Selling a rental property in Atlanta can be a complex process, so it’s important to be prepared for what’s to come. You’ll need to be prepared to show your property to potential buyers, negotiate offers, and navigate the closing process. It’s also important to be realistic about the timeline for the sale and to have a backup plan in case the sale falls through.
Selling a rental property in Atlanta can be a lucrative and rewarding process, but it requires careful planning and preparation. By working with the right people, you can maximize your profits and minimize your stress. ATL Cash Home Buyers can make selling a rental property as simple as possible. Reach out to our team today to find out how we can help you! 404-439-9984
