Investing in real estate can be a lucrative venture, but knowing when and how to sell your property is just as crucial to your returns as the initial purchase.
Whether you’re a veteran investor or selling an income property for the first time, there are several key factors to consider before approaching the market.
In this blog post, we’ll look at five important considerations when selling an investment property in the Greater Toronto Area.
1. Your Motivators
Before diving into the logistics of selling, it’s imperative to understand your reasons for doing so. As an investor, identifying your motivators will be an informative step in shaping your market strategy and making the sale smoother overall.
For instance, if you are looking to upsize your real estate investment to a larger asset, you may hold off on selling until the right property is available. Alternatively, if you are selling because you wish to move on from the responsibilities of owning an investment property, you could pursue other solutions that allow you to continue building wealth while eliminating the stressors of property management.
2. Your Timeline
Like any real estate transaction, selling your investment property isn’t an overnight process – especially if you are looking to optimize the results of your sale. Therefore, you will want to consider your ideal timeline for selling. As an example, if you are looking to offload your investment ahead of a major life transition such as retirement or relocation, this timeline will impact how you approach the market.
If you have an ideal timeline in mind, it is best to initiate the sale process as early as possible. Depending on your property, certain elements of the Ontario Residential Tenancies Act (RTA) could impact how quickly you are able to reach the market. More on that next.
Searching for investor-focused real estate resources? Consider these related blog posts.
- Finding a Trustworthy Tenant For Your GTA Investment Property
- Investing in the GTA Suburbs
- Using a Full-Service Real Estate Team to Maximize Your Investment
3. Tenant Rights & Red Tape
If your investment property is currently occupied by tenants, there will be a number of important factors to consider ahead of your sale. This part of the selling process can be fairly intricate. In Ontario, tenants are protected by a wide range of regulations, especially when it comes to the sale of your property.
For instance, among other rights, your tenants will require formal notice for each property showing. Further, if you wish to evict tenants before you begin the selling process, you are required to provide a minimum of 60 days notice – all tenants must also be beyond the first year of their lease.
Looking for more information about tenant rights in Ontario? Click here to read our in-depth blog about selling a tenanted property.
4. Your Next Investment
Ahead of your investment property sale, take time to consider what you intend to do with the equity earned. As an investor, your ambitions for the future, both personal and financial should influence how you approach your sale.
Whether you’re looking to reinvest in real estate or explore other investment avenues, having a clear strategy for your next move is crucial. Depending on your goals, this process may overlap with assessing your reasons for selling.
If you intend to pursue a new venture with the funds from your sale, consider your long-term financial goals and risk tolerance. Are you aiming for stability, or are you open to higher-risk, higher-reward opportunities?
Selling your GTA investment property? Explore these other resources from our blog.
- How to Sell Your Home When You Have Tenants
- 7 Important Steps to Prepare For the Sale of Your Toronto Property
- How to Get 100% of List Price in Your Toronto Home Sale
5. The Agent You Work With
As an investor, one of the most important details in your property sale will be the real estate agent that you choose to work with. Keep in mind that the right agent will not only ensure you receive a lucrative return but can also take care of the unique logistics involved with selling a tenanted property.
At Bahia Realty Group, we have the specialized insights and tactics to guide you toward a high-ROI sale. As part of our end-to-end services, you receive an in-depth education on selling in today’s market, best practices for tenant communication, and how to best add value to your sale.
In addition to our investor-specialized expertise, our leading selling strategies ensure you enjoy a successful, high-return sale. Anchored by our 100% of list price guarantee, our unique selling tactics have proven effective in a vast range of market conditions and circumstances.
Providing uncompromising service, Bahia Realty Group can help you sell for the absolute highest dollar. Click here to send us an email or call 416-498-3444 to get in touch.
