What Steps Are Involved In Selling My Investment Property?

By Shayne Bowen

What Steps Are Involved In Selling My Investment Property ?


A significant portion of my clients are investors, many of whom live out of state, or out the immediate area of their Sonoma County properties.

I'm often asked what the process is for bringing an investment property to market.

This process is the same whether one is selling their investment property outright, or doing a 1031 exchange.

To illustrate the process, I will give an example of an actual investor client (her name has been changed), and the process that she used to bring her properties to the market. We will call our investor Sheila Casssini.

Step 1: Get A Present Value Calculation

No Need To Disturb The Tenant!

Step 1: Call me and request a complimentary calculation of the present value of your property.

We will provide this written calculation of your property’s current market value to you. We will also estimate your final, net proceeds from marketing the property. (There is no any obligation for requesting this service of me.)

Example: Sheila Cassini, the investor mentioned above, called me. She stated that she would like to sell her three investment properties in Sonoma County. She said she wasn’t sure whether she wanted to sell them outright, or sell the properties and buy replacement properties via a 1031 exchange.

I asked her a number of important questions about her properties, and about her goals. She asked if I could prepare a calculation of the present market value without seeing the properties. I told her that it was no problem, that I rarely need to see the inside of a property in order to prepare an approximate calculation of present market value.

She asked if I could assist her with the 1031 exchanges, if she decided to do one. I replied that I have extensive experience with 1031 exchanges, both from several of my own investment properties, and from working with many, many investor clients over the years. I told her that I could refer her to several possible facilitators for the exchange.

She stated that she thought she would go ahead and do a 1031 exchange, and replace her Sonoma County properties with properties in North Carolina, where she now lives. She asked me to prepare a time-line of when each property would need to be sold, and when each would need to be placed on the market, in order to meet her desired goal of being into her "replacement property" in North Carolina within 120 days.

I told her I would prepare a time line, and include in it some needed listing and close date projections to allow for the rules in 1031 exchanges (45 days to "identify" the replacement property; 180 days to close on the replacement property).

I then researched all of the properties, and prepared a projected time-line for listing and selling the properties. I prepared a calculation of present property value. I prepared a net proceeds calculation for all three properties.

Step 2: Decide How To Handle The Tenant

Leave The Tenant In The Property, Or Give Them A 30 Day Notice?

Step 2: Call me to discuss the pros and cons of leaving the tenant in the property, versus giving them notice.

Example: Sheila, our investor, emailed me to discuss this question. After discussing the pros and cons, she decided to give a 60-day notice to one of her tenants, because her property manager had determined that the property didn’t show well with the tenants in it, and, in any case, the tenants were not going to be very cooperative with the property being shown.

Since her other two properties were vacant, she decided to market the other two properties first, while she was waiting for the tenant to exit the occupied property.


Step 3: Have Me View The Property

Get Estimates For Work Needed On The Property

Step 3: Call or email me with contact information and information on how to obtain a key, so that I may view the property.

The purpose of my visit to the property is to determine its cosmetic condition, to make recommendations on possible cosmetic improvements (if any), and to get estimates from technicians, if needed.

Example: Two of Sheila’s property were vacant, and had already been very nicely updated. She asked me to hold off on seeing the third property, until her tenants vacated the property.

Step 4: Make The Final Decision On Price

Review Final Present Value Calculation

Step 4: Make a final review of the present value calculations on the property. Decide on a list price.

Example: Sheila, our investor, decided to be fairly aggressive on the pricing of two of her properties, since they were vacant and in very nice cosmetic condition. She asked me for a less aggressive pricing recommendation on her occupied property, since she had not done much work to it in over 20 years of ownership.

Step 5: Handle The Listing Paperwork

It Can Be Done By Fax

Step 5: Review and approve the listing paperwork. Fill out and sign the disclosure forms.

Example: Sheila lives out of state, so all of this paperwork was handled via email, fax, and FedEx.

Contact & Biographical Information

If you would like to explore, at no obligation, the sale or exchange of your investment property, please contact me. I may be reached at 707 577-8200, or you may email me at ShayneBowen@yahoo.com. I respond promptly and fully to either type of inquiry.

If you would like to begin the exploration of number scenarios for your Copperfield, Sierra Meadows, or Pepperwood Creek property, please phone me for the first step, which is a no-obligation, complimentary value analysis of your property. This analysis will give you the starting point for the numbers analysis.

I have specialized in real estate sales in the Copperfield area for over 15 years, and have been in the real estate industry for over two decades. During this period, I have personally marketed more homes in this area than any other Realtor. For a list of the homes that I have personally marketed in the Copperfield, Sierra Meadows, and Pepperwood Creek developments, please visit this web address: ShayneBowen.com/northwest.

As an owner of a Copperfield, Sierra Meadows, or Pepperwood Creek property, you deserve someone with extensive local knowledge. Here are some details on my actual results:

  • 72 closed sales in the immediate Copperfield, Sierra Meadows, and Pepperwood Creek area
  • 125 closed sales in Northwest Santa Rosa
  • $20,000,850 (million) dollars of closed sales in Northwest Santa Rosa

To see my professional resume, click here

Investors are a large portion of my clientele. I have owned investment property in the Copperfield area, in Santa Rosa, and out of state. I have access to several vendors who can accomplish many things for an investor during the marketing period of a property, including painting, landscaping, repairs, etc. I obtain these estimates for the investor, because a large majority of sellers live out of the area. I handle all of these matters so that the investor does not need to.

I obtain competitive estimates, and present the seller with recommendations based upon many, many years of personal and business experience regarding the improvements (if any) that will make the largest net profit for the investor.

I have tremendous experience in knowing how to optimally intersect the seller's need for continuing cash flow from the existing tenant with the important need to maximize the value of the property during the marketing period. I am highly experienced and knowledgeable about various strategies for handling cash flow issues during the marketing and/or preparation for the marketing period.

For client professional references, click on the web address: ShayneBowen.com/reference.htm.

If you would like to speak with me regarding the first step in the sale (or exchange) process, you may request a complimentary, no-obligation market analysis of your current property by phoning my office at 707 577-8200.

If you would like a complimentary, personalized property value analysis, please phone Shayne Bowen at 707 577-8200! (Alternately, you may click here to make a request for a personalized property value analysis.)  
If you are interested in making a purchase or exchange of a property, please phone Shayne Bowen at 707 577-8200! (Alternately, you may click here to request information on potential properties for you.)