Closing the Deal
Imagine that you have now finished investing in your property and all that remains is the successful return of your investment with a healthy profit. You have one more last step to take and that is selling your property. No matter how much effort you have put into your real estate investing plan if you cannot sell or even make a good sale then everything is as good as lost.
What a shame it would be after all that hard work and the investment to fall at the very last hurdle. However if you have good advice and take the necessary precautions you can avoid some of the more serious losses that await you at this very late stage of your investment.
Knowing the Time
It is imperative that you sell at just the right time in order to maximize your profits. Theoretically the right time to sell is just at the point before the asset starts to lose its value. You cannot predict with absolute certainty when this point will occur but generally you may be able to get some pointers that show that you are nearly there. Under no circumstances should you ignore these warning signs because when the prices start to fall they really fall that low. If you are spooked and end up selling while the prices are falling, then you might minimize your losses but at the same time you will not be making a profit.
If you are unlucky enough to miss that period when the asset is going to lose its value, then the clever investor must start to think about long goals. You should think about riding out the storm and waiting for the new price hike to arise. If you are really desperate and cannot think of a way to get out of your predicament, then you must sell quickly.
The worst time for the real estate investing business is when the market is between two peaks and therefore is at rock bottom. Selling at this particular time is a spectacularly bad business decision. Unless you are really in cash tight situation, you should hold your real estate portfolio for long term.
The key to knowing what to do is linked to the availability of market intelligence. If you are running a really big outfit you might even consider hiring someone specifically to look out for information about the price movements on your assets. Do not fret about the cost because at the end of the day they will save you a lot more money in the long run.
When you come to make the sell, please always work out yours costs over time before you set a price. There is a very dangerous tendency to ignore the historical costs when setting the price in an effort to break even. Those historical costs are the DNA of your real estate investing opportunity. To ignore them is to work on a mistaken premise and in any case the costs will have to be paid. The only realistic way of recouping them is setting an appropriate price that takes into account all that you have put into the asset.