Real Estate Analysis | How Do I Know When To Sell? | Market Shift | Interest Rates | Investing

As a savvy consumer, you're likely aware that the Federal Reserve raised interest rates by 3/4 of a point last week, with the anticipation of more rate hikes to follow. What do these changes mean for buyers? Will the increase in rates precipitate the SHIFT once and for all? We're seeing signs that the shift is coming to a market near you (in our case, the Outer Banks of North Carolina).

For those of you who already own real estate, whether it's your primary residence or a full portfolio of investment properties, this impending SHIFT provides a great opportunity for you, if you play your cards right and plan ahead. This calls for a spreadsheet (for me, anyway--for you, it calls for an in-depth analysis of each property in your real estate portfolio)! Where do we begin? That's where I come in.

In this video, we'll talk about the steps for analyzing each property in your portfolio, and 5 SELL TRIGGERS that you might employ for each.

In general, your steps for analyzing each property in your portfolio are to determine:
-What's the property's current market value? (If your property is on the Outer Banks, I'd love to provide you with a market analysis! If your property is elsewhere, turn to your trusted real estate advisor in that area. Don't have one? Let me know and I can point you in the right direction!).
-Whether you'd like to hold that particular property for the short, medium, or long term;
-Whether the property is cash flow positive, negative, or neutral;
-Do you have any big expenses or deferred maintenance that need to be taken care of soon that you'd like to avoid?
-What's your risk vs. reward proposition? By that I mean, are you willing to risk the market dropping? Higher insurance costs? Storm damage? Capital gains?

You'll then need to think about your trigger to sell--everyone has one! Here are some examples of sell triggers:
-Age: Do you want to sell when you retire? Perhaps downsize when the kids are out of the house?
-Health: Maybe the property requires a lot of upkeep that you don't want to perform in your later years, or perhaps you'd like to move to somewhere that's better suited for aging in place
-The Market: Maybe you have a "top dollar" value in mind that you will sell at (if that's the case, and your property is on the Outer Banks--let's talk sooner rather than later!)
-Income/Cash Needs: Perhaps you're planning to use the proceeds from the sale of this property to finance your golden years or another dream down the road
-The Grim Reaper: You have no sell trigger--you're not leaving 'til they carry you out of there!

Considering all of these factors should help you arrive at an action plan for each property you own.
For my OBX property owners, I'd love to help you create an individualized strategy to make the changing market work for YOU! If you haven't forged an alliance with a real estate professional in your area, let me tap into my network of trusted advisors on your behalf.

Danielle Taylor, REALTOR
Keller Williams Realty-Outer Banks
Call/Text 252.489.9185
Email danielle@sandbarliving.com
www.sandbarliving.com

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Equal Housing Opportunity.