Marketing Your Real Estate Investment

April 14, 2009 by  
Filed under Real Estate Investing

Anything that has ever been sold to a human being had to be marketed prior to achieving the sale. If you are a seller or buyer in the real estate world, you already know how true and important this fact is. Marketing involves developing and carrying out all aspects of selling an item, including research, advertisement, promotion and sales.

In order to research a property before you buy or sell it, search online for recent comparable sales in the area. How many are there? Are the prices fair and comparable to your property in question?

It’s very important to know local prices before buying or selling a property. As a seller, you don’t want to ask for too little and leave money on the table. As a buyer, you don’t want to pay too much for the property.

Selling a property can take weeks or months, depending upon the level of energy exerted in marketing efforts and the economic climate in the area. As an investor, you need to know if the current market is in a state which will turn a profit should you sell your property. It will also let you know if there should be some room accounted for negotiations during the selling process as well.

Prior to agreeing to a sale price, determine which costs you are willing to cover, and figure them into the price you need to walk away with. Will you pay for closing costs such as the agent’s commission or title search? Will you offer a warranty or allowance for repairs at closing?

When advertising your property, you need to determine who your target audience is, then cater to them. In other words, don’t list you home as the ideal executive bachelor pad if it’s located across the street from a local school and surrounded by families!

Attracting as many potential buyers as possible will increase your chances of receiving the type of bid you’re looking for. Some advertising methods include word of mouth, newspaper ads, yard signage and Internet listings.

After listing the property and advertising it, track which method results in the most inquiries on the property. This can help you focus your advertising methods and drop the ones that aren’t working. Additional funds can then be used to purchase an upgrade on the Internet site that perhaps brought all of those previous offers to you.

If you are selling the property without the aid of a real estate agent, look for a specialized FSBO (for sale by owner) site dedicated to your area. Many buyers will look here first in order to find their new home.

Also decide if you will offer seller financing options. This allows you to pocket the down payment and have the new owner pay the payments owed, but will keep the mortgage home loan on your credit report. If the buyer defaults, you still retain the property. The buyer may also utilize this method for only a short time until he is approved for financing with a mortgage lender.

This is a great marketing tactic, as well. Many potential buyers are searching exclusively for these deals in order to find something they can afford and avoid having to find a home mortgage loan on their own.

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