Real estate is a great way to make long-term investments. However, if you have plenty of money tied up in property investments and are in need of urgent cash, liquidation is the easiest option. In very basic terms, liquidation refers to selling an asset off or converting it to cash. It’s a legal way of increasing your cash flow whenever you are in a financial crisis.
In most cases, real estate liquidation is used to remedy bankruptcy. When used in this context, liquidation can be intimidating. This is because a trustee appointed by the court evaluates the debt situation and determines which assets can be sold to pay the debt off. However, this legal can be beneficial in the end as it keeps you from losing all your assets.
Several factors determine how you liquidate real estate properties. These include why you’re liquidating the properties, whether you’re selling all the properties or just a few, the size and location of the estate, as well as how fast you need the cash.
If you’re looking to liquidate your real estate property, here are 4 ways to do that fast:
- Bundle Your Properties Up
If you have multiple properties you wish to liquidate fast, you can package them together rather than selling each property individually. Bundling the properties up will enable you to generate a decent revenue and find a way to sell dormant properties that wouldn’t dispose of quickly.
It also enables you to attract group buyers, international investors, large funds, and tycoons who may be looking to make significant investments. While you may not have many qualified buyers to target with bundled property packages, you can narrow your marketing efforts to targeting these few with a single sale.
Also, find out which companies buy properties in your locality and reach out to them with your offer. For instance, if you have a property in Florida, reach out to us, We Buy Houses in Jacksonville and will be happy to talk about your property.
- Leverage Property Listings
If you’re having trouble paying the hefty commissions real estate agents want, you can explore the option of placing your real estate property on property listings and pay a flat fee for the service. To attract the buyers, place good photos of the property on the listing. If your property is in bad shape, consider repairing it first before listing it.
This could mean undertaking face lifting on its interiors and exteriors and it’s important anywhere you may be in the country. So, if you’re in Tennessee, get a professional roofing in Franklin TN expert to fix the roof to give your property a new look. This will not only improve your property’s curb appeal; it will boost the value of your property.
For this method, your efforts shouldn’t stop here. Consider popularizing your listing more to attract your ideal buyer. For instance, post details about the property on real estate buyers and investing social media groups in your locality.
You can also print flyers and place them in places where your target buyers frequent like local gyms, coffee shops, and grocery stores. This will help in getting word out about your property.
- Hire A Real Estate Agent
Another way to liquidate your real estate property fast is to hire a real estate agent. If you choose to use this method, get an agent who deals in the niche of properties that you’re looking to sell. Such an agent will have links to investors in your location, which makes it easier for them to find a buyer.
Also, an established real estate agent will have a database of prospects in their niche. After assessing your prospect, they’ll contact them via email or phone to interest them in your property. This increases your chances of finding a buyer within a few days if the price you’re offering is attractive.
- Sell Through An Auction
You can liquidate a real estate property quickly by auctioning it off. This method involves selling the assets through a bidding process. If you need to sell your property off before a given date, this liquidation process is the most ideal way.
The challenge with liquidating properties through bidding is that the amounts that most auctions fetch are significantly low compared to the market price. Rarely will you find buyers placing bids that are higher than the market value. Use a controlled auction to sell your property. In this case, you’ll have a base price that each bidder must reach.
If you choose to auction real estate properties, you’ll need to hire an auctioneer. You may opt for one with robust marketing strategies in order to attract many prospects during the auction. Before you hire them, ask them to provide you with the estimated value of the property and negotiate their fee.
Converting investments in real estate into cash can seem like a difficult thing to do, particularly when you need to do it fast. However, knowing what options you have available can help you achieve this faster. If you need to liquidate your property quickly, use any of the four methods discussed above.