6 Things You Need to Know About Selling a Rental Property in Utica

If you’re an investor who owns a rental property in Utica 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 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 Utica.

1. Understand the Market Conditions

Before you decide to sell your rental property, it’s important to understand the market conditions in Utica. Is the market currently in favor of buyers or sellers? What is the average time it takes to sell a property in your area? What are the average home prices in your neighborhood? 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.

Here in New York State, tax implications are incredibly serious. In addition to Federal Income Tax, New York State has an 8.62% State income tax. That’s right, $8,620 in taxes on every $100,000 of real-estate profit in NY. Don’t forget about capital gains taxes too! Unless you have a qualifying exemption, you may be stuck with paying an additional capital gains tax of either 15% or 20%. Be sure to consult your accountant to factor this cost in.

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 your property. 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.

Here at Fast Cash Home Buyers, we have access to the MLS (Multiple Listing Service) as licensed real estate salespersons in New York. This means that we can EASILY determine the current value of your investment property, as well as a projected after repair value if you plan on renovating the property.

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. Professional pictures are a must! All too often, homes are listed with cell phone pictures that the agent took themselves. To get right to the point, these homes will take longer to sell. No one wants to see photos on Zillow from your iPhone 10 camera. Hire a professional photographer. It will most likely pay for itself in the end.

5. Find the Right Real Estate Agent

Working with a real estate agent who specializes in selling rental properties in Utica 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 Fast 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. 

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. If your tenants are not happy during the listing of your property, they will indeed let the prospective buyers know. After all, most tenants remain in the property during showings. You want your tenants to give raving reviews to potential buyers when they tour the home.

7. Be Prepared for the Selling Process

Selling a rental property 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 Utica 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. Fast 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! (315) 351-2772