Signature Intl Premier Propert
Sally Masters, P.A. , Signature Intl Premier PropertPhone: (239) 253-1579
Email: [email protected]

Selling Your Home as an Investment Property

by Sally Masters, P.A. 09/05/2021

Photo by fran hogan on Unsplash

If you’re a homeowner considering selling your home as an investment property, timing is important. From a financial perspective, just as you probably bought strategically, you want to sell strategically too. The trick is knowing when the right time arrives. Here are four common metrics people use to determine when it's time to sell their property.

Amount of Equity in the House

A primary factor to look at is how much equity is in the home. Ideally, to sell a home as an investment, the seller can make a tidy sum. If mortgage payments are still owed, this may negate any potential profit made, but not necessarily. If you're looking to broaden your investment portfolio, be certain you can sell your house for enough money to pay off your debt with a sufficient amount left over to re-invest. If you don’t have enough equity to do this, you’re better holding off.

Market Conditions Are Good

Many owners who bought low and can sell high find this to be a strong motivator to put their property on the market. Since market conditions eventually shift to a buyer’s market, it’s a smart strategy to sell when the housing market favors the seller. Owners who have held their property for a long time or purchased as the housing bubble burst between 2007-2012, are likely going to make a better profit than investors who purchased when prices were at their peak.

Tax Code Advantages

Buyers are often motivated to sell if there are tax code advantages. For instance, the IRS currently offers a tax-deferred advantage to investors looking to sell one property to buy another. Under tax IRC Section 1031, sellers are required to find another property to purchase within 45 days and then buy it within 135 (180 days total).

By selling and making a similar real estate investment, investors can defer paying their federal and state capital gain taxes. It’s a good strategy to use if you want to leverage real estate and broaden your portfolio.

Taxes Are Going Up

If local taxes are going up, often buyers find this to be an incentive to sell. For instance, if a town severely limits commercial activity, the tax burden falls to homeowners. Over time, the tax bill may become too exorbitant. If you own enough equity in your property and the housing market is in your favor, high taxes might be your tipping point.

About the Author
Author

Sally Masters, P.A.

Trustworthy, reliable, hardworking---a committed and dedicated Realtor who has earned the respect and admiration of her peers and the many clients who have called on her to consummate an important Real Estate transaction.

For over two decades, Sally Masters has been successfully listing and selling homes throughout Naples, Marco Island, Bonita Springs, Estero, Ft. Myers and Cape Coral and surrounding areas. Today, she is recognized as one of Southwest Florida’s most outstanding marketing, negotiating and sales professionals. In 2018, this native of London, England joined the Signature International Premier Properties team, bringing her vast knowledge and insight of the residential, waterfront, golf course and estate home marketplace to one of Florida’s fastest growing Real Estate Companies.

Sally has few equals in regards to her list of industry-wide certifications and designations. They include being a Certified Luxury Home Marketing Specialist and an Institute Luxury Home Market member. Sally has earned a CIPS Designation (Certified International Property Specialist), the RSPS Certification (Resort and Second Home Property Specialist) the SRES Designation (Senior Real Estate Specialist) and the MRP Certification (Military Relocation Professional)

In addition, she has been the recipient of the prestigious Ad Miller Award, recognizing an individual who has contributed to the enhancement and preservation of private property rights. In August, 2018, Sally was featured in Forbes Magazine as a Real Estate Market leader for Southwest Florida.

Sally Masters’ network of clients stretches far and wide- both beyond the United States and throughout Canada and Europe. For years, she has successfully worked with the many international buyers and sellers who invest and call home to Naples and its surrounding environs.

Going above and beyond for her many clients and her commitment to keep her buyers and sellers well informed throughout the entire transaction process is what truly defines Sally’s highly acclaimed work ethic. She constantly receives referrals and new business from her many satisfied clients who enlisted her as their broker of choice and remain in close contact.

Sally continues to give to the community she has called home for many years. She is the active and proud founder of the www. Adopt-A-Soldier.org, a charitable organization that sends packages to our troops stationed overseas.