MYPV E4 – Keep Detailed Records

 

Without information, our minds tend to jump to conclusions. In a real estate transaction we are trained to be skeptical and verify everything that is presented to us. There are plenty of stories where buyer found unpleasant surprises about their properties after the closing. 

So how can you build trust with potential buyers? Try providing detailed records about your property! 

You’re going to want to provide:

  • a complete and detailed rent-roll. Buyers are going to make their own projections about where rent could be but that’s not what will drive the sale price. It’s your past and current rents that drive the property value!
  • a trailing 12 month profit and loss statement. This is not the pro-forma that your agent will prepare. This is the actual numbers. The good the bad and the ugly. If things don’t look the best then look back into the last few years. Do the numbers show a trend? Can you tell a story that explains the direction the building is going?
  • current and complete leases
  • utility bills

The more organized that you are, the more confident the buyer will be in their initial offer. This will avoid attempts at renegotiating the price or terms during the due-diligence period.

Again, in the absence of information, the buyer will assume the worst and give you an offer that reflects that scenario.

 

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Have a question about property management or real estate investing? We want to hear from you. Submit your question in video format and if your questions is featured on one of our future shows you could receive a free gift! Please keep your question under 60 seconds. If recording on your phone – please have your phone in landscape orientation. It is preferred that you share the video by uploading it to YouTube and sending the link to us using our contact page: http://www.realestatestiles.com/contact/

 

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Mark your calendar for the Northstar Real Estate Conference, September 20-21, 2019. Enter discount code “STILES” to get $100 off your ticket: www.nreconference.com

 

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Thanks to Todd Dexheimer for being a special guest on today’s show. You can learn more about Todd by checking out his podcast: Pillars Of Wealth Creation. Find the show on iTunes or YouTube.

 

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Are you wondering what your property is worth in today’s real estate market? Download my free e-book that will help you calculate your property’s value! http://www.realestatestiles.com/value/

 

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John Stiles is a licensed MN real estate agent with Bridge Realty.
Check out more more episodes of Maximizing Your Property Value at www.MYPV.realestatestiles.com

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