Selling Your Property For Maximum Dollar

**MultiplyMyIncome** · 02-21-2008, 11:01 AM

There are ways to manage your property more efficiently to increase your profits but there are also specific ratios and profit centers to target in order to maximize when you sell.

The most common way is to increase rents by a small amount. If you have an apartment building, for example, with 100 units in it that is currently operating at a 10% cap rate with Net Operating Income (Gross rents less your expenses will give you your NOI - Net Operating Income) of $100,000, then you know your building is worth approximately $1,000,000 ($100,000 divided by 10%). It's important for you to know some ratios well enough and to be able to play with them so you know what even a $20 increase in rents will do to your value. For example, when you increase your rents by $20 / unit you just added $2000 in monthly income or $24,000 to your Net Operating Income (assuming no increase in expenses) to make it $124,000 yearly and the new value using the 10% cap rate is $1,240,000. That's almost a

**manish123** · 04-30-2008, 01:53 AM

Nice article to get maximum benefit on any one's property. this will help a lot to every people who is attached with real estate industry.

**GetSmart** · 05-06-2008, 07:03 AM

The methods you are referring to seem kind of familiar. I think Carleton Sheets talks about this sort of stuff in his course.

**rainier** · 05-07-2008, 01:21 AM

the method you posted above is very useful indeed but you can also sell your property at the very most profitable price.

**nancyarora2020** · 06-09-2008, 04:40 AM

Is it the right price for the property? Perhaps this is the question that keeps on creeping in people's mind ever since they make up their mind to buy or sell a property. It is quite necessary to spot the right price for making a successful real estate transaction but it is some how difficult . Neither any rule of thumb nor a scientific technique is there to help! So, how to get a good deal? People are advised to believe their own instinct but cautiously. Some things which one should keep in mind to reach the decent levels of property-valuation and deal are:

Good quality roads around and within the society add value to the property.
Value depends on the profile of the location where the property is situated.
Connectivity with bus depot, railway station and airport is equally important from buyer's point of view. In fact, property in vicinity to these facilities makes sound investment proposition.
People avoid locations that are closer or are known as riot prone area or communally polarized.
Not to mention, green surroundings, civic amenities like safe drinking water, uninterrupted power supply and systematic drainage system are the first preferences of the buyer.
As valuation of property is a process, all the above discussed factors go hand in hand with perception of quality.