Need to Sell Now? Try One of These Alternative Exit Strategies

Having a good exit strategy, or two or three, is an important piece of your overall investment plan. Why? Because sh*t happens. Things don’t always work out according to plan, and when these moments arise, you need a good Plan B. In real estate, this may mean unloading the property as quickly as possible. Of course, you can go the old-fashioned route and sell the property as if all were fine in the world. However, if you’re really in a crunch, you may need to approach it a bit differently. Here are 4 alternative exit strategies that may just get you out of a bind:

Auction It Off

A few months ago, I noticed a sign for a real estate auction for a large house outside of Kansas City. My curiosity got the best of me, so I went to the open house in advance of the auction. The home had been on the market for ages and was valued at $900,000. Guess what the starting bid at the auction was? $490,000 - almost half of the value. But do you know what the house sold for at auction? $825,000. Not too shabby, considering it had been languishing for months without any takers. My point is, auctions will bring out the buyers. You may not get top dollar for your property, but if you need to sell fast, an auction can get the job done.

Find a Niche Agent

Niche agent sounds like a cool job, right? And it is. Niche agents, at least in terms of real estate, are the realtors who cater solely to investors. They’ve got a list of contacts in their networks that would knock your socks off, and if you offer up your listing to them, all those contacts will be...well, contacted. It’s an effective way to get your property in the minds of other investors, who may be more likely to jump on it than the average homebuyer.

Bundle Your Properties

You know how the cable company gives you a better deal if you use them for TV, internet, and phone? Well, you can do the same thing if you own multiple properties. Obviously, this option won’t apply or even appeal to all investors, but if you’re in possession of several properties that you need to dump, why not bundle them and sell them as a package? There won’t be as many buyers, but the ones who are qualified will be willing to spend the cash to expand their portfolios.

Harness the Power of the Interwebs

This one is so simple that you may wonder why you never thought of it before. As you know, the internet is a vast and mysterious place, full of wonder and possibility. It’s also a great place to advertise your property, and sites like Craigslist, Backpage and eBay are perfect for this. So is social media, especially if you have a lot of friends/followers. The great thing about this exit strategy is that it is totally free and can be used in conjunction with other approaches.

Having to move into Plan B with your investment isn’t much fun, but it’s a fact of life. Having a few different exit strategies in your arsenal will make it a little easier, because at least you’ll be prepared. Decide which one(s) work for you, and keep them in mind if and when you need to sell fast.