Selling a STR, furnished or not, list with agent or not?

Financial Advisor · Saint Paul, MN · Member since 2016 · 190 posts · 143 votes

Hey all, I've had some unexpected life updates and am considering selling our short term rental in Cape Coral FL. It's fully furnished for an STR & has a year plus of track record plus a rate in the low 3%.
What is the best course of action with this? List it with our agent down there & sell it furnished, or unfurnished?
List it on various STR forums & try to bypass the agent?
Consider alternate financing so a purchaser could keep the low rate?

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Dave StokleyBusiness Member

Property Manager · Cleveland, OH · Member since 2015 · 705 posts · 799 votes

If you don't have enough time to manage the STR you probably don't have enough time to sell all the furniture separately, so I'd definitely sell it furnished. Will you get fair market value that way? Probably not, because the vast majority of buyers aren't STR investors who value it like you do, but it's efficient.

Personally I'd use an agent, again because selling real estate is not the highest and best use of my time.

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Dave StokleyBusiness Member
Property Manager · Cleveland, OH · Member since 2015 · 705 posts · 799 votes
3y
If you don't have enough time to manage the STR you probably don't have enough time to sell all the furniture separately, so I'd definitely sell it furnished. Will you get fair market value that way? Probably not, because the vast majority of buyers aren't STR investors who value it like you do, but it's efficient.
Personally I'd use an agent, again because selling real estate is not the highest and best use of my time.
5 Reply
Josh Edelman
Real Estate Agent · Las Vegas · Member since 2018 · 198 posts · 143 votes
3y
Statistical data indicates that homes sold by owners (FSBO) tend to fetch lower prices compared to homes listed with real estate agents. In 2020, the National Association of Realtors (NAR) reported a median sale price of $260,000 for FSBO homes, whereas agent-assisted sales had a higher median sale price of $318,000. This price difference between FSBO and agent-assisted sales implies that opting for FSBO may result in missing out on potential earnings that could have outweighed the agent's commission.
I'd recommend an agent - being biased of course. But now that I am an agent and have helped many once-FSBOs I can see that value an agent provides and how much stress and confusion someone selling by themselves would take on for not that much benefit.
3 Reply
Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
3y
As an lic. agent I am biased but I would highly recommend using an agent. Statistically you will get more and navigating all the proper paperwork and disclosures could keep you out of trouble. If they are just listing it and not doing a lot of out of pocket marketing you should be able to get it for around 1.5% to list agent/2.5% to buyers agent. Im in Tampa not too far North and that is what I charge clients.
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
I have gotten top dollar by selling my flip properties on Zillow.com and I pass the realtor fees back to the buyer.
I will pay a buyers agent a fee if the buyer feels they need hand holding, but then the buyers lose that money that I would have given to them.
I list all this in the zillow ad.
Everything is online now and everyone is checking zillow along with MLS.
4 Reply
Rashid Khalil
Member since 2022 · 88 posts · 29 votes
3y
Quote from @Daniel Murphy:

Hey all, I've had some unexpected life updates and am considering selling our short term rental in Cape Coral FL. It's fully furnished for an STR & has a year plus of track record plus a rate in the low 3%.
What is the best course of action with this? List it with our agent down there & sell it furnished, or unfurnished?
List it on various STR forums & try to bypass the agent?
Consider alternate financing so a purchaser could keep the low rate?

what mortgage do you have FHA or conventional?
whats your return form property ?
0 Reply
Lauren Endres
Real Estate Agent · Member since 2022 · 15 posts · 10 votes
3y
I would definitely sell it furnished so you can list it as "Turn-Key", allowing investors to quickly start making a return. If it has future bookings under a rental company those can be transferred as well to the new owner. Have you already considered taking out a HELOC to use the equity towards what you need the proceeds for? It sounds like you may be producing cash flow with that low interest rate so that is just an idea to use it as leverage.
1 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
Quote from @John Underwood:

Everything is online now and everyone is checking zillow along with MLS.

I think people start with Zillow to find a few properties and then turn to a Realtor to get showings etc..... I never saw much value in the MLS (lately anyway)
But I would still use a Realtor to sell my properties, most of the time anyway....
1 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
Sell it as is with all the furniture. It gives the buyer an opportunity to continue to run the property as a short term rental or have you in the same position if you decide not to sell it.
0 Reply
Christopher Price
Rental Property Investor · Seattle, WA · Member since 2022 · 25 posts · 15 votes
3y
Normally I would say sell it with a realtor but as a STR if the numbers were decent you can find other investors that would take it off your plate. If I was in the area and looking I would buy without one seeing that I am an inspector and investor so I know what to look for. Assuming you need the equity in the deal and not looking to have someone co host the property for you, I would go that route. Send me the details vi message, the Airbnb listing and I can see if any of my people down there would ne interested.
0 Reply
Brooklyn McCarty
Investor · Member since 2022 · 1k+ posts · 754 votes
3y
Always with a agent!
1 Reply
Curtis Porter
Property Manager · Peoria Arizona · Member since 2019 · 39 posts · 24 votes
3y
I would sell furnished as a turnkey STR.
0 Reply
Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
3y
It's funny but we have never used an agent to sell a house. Someone always comes along and snaps it up. We aren't giving them away either.
I would use an agent now as we haven't sold anything for years and I don't want to deal with it.
Sell it fully furnished if it looks good.
0 Reply
Sarah KensingerPro Member
Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
3y
Selling a STR furnished is great for the next owner! Instead of purchasing all the furnishings they can just swap out a few things they might want to change.
As for the rest of your questions, I think you need to figure out what works for you and do it!
[email protected]330-557-3021
0 Reply
Peter Davis
Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes
3y
I would definitely sell it furnished/turnkey and give buyers the option to either use the furniture themselves or have it ready to go as a vacation rental. That said, it's been a quiet off-season for vacation rentals here in Cape Coral. My STR property manager said she's now getting rental rates for her waterfront homes that she's used to getting for her off-water homes, and those off-water homes aren't renting, unless you offer them between $99 and $115 a night, but it's not worth it at that price point, in her opinion. Hopefully it will pick up as we get closer to "season".

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KiKi ChaseBusiness Member
Real Estate Agent · Indianapolis, IN · Member since 2022 · 184 posts · 75 votes
3y
Is there something in your agent's listing contract that explains what happens if you bring a buyer? If that is allowed, I would have your agent list the property, offer it to be furnished or unfurnished, and you can market it through BP or other sites. But make sure your agent is ok with this and there is something in the contract outlined about it.
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Mason Liu
Financial Advisor · Boynton Beach, FL · Member since 2019 · 127 posts · 80 votes
3y
As others mentioned, listing it on the MLS will typically get top dollar, and statistically speaking having an agent list it on your behalf gets top top dollar (although YMMV depending on the agent of course).
If furnished well, would definitely recommend providing the option of selling it furnished as a STR to appeal to the STR buyers.
1 Reply
Stetson MillerBusiness Member
Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
3y
@Daniel Murphy First and foremost, please send me the details as I have clients that I know would want to purchase this, whether that includes me in the deal or not
Like others have said, it is significantly to your advantage to have an agent involved in your transaction for all the reasons listed above, so there's no need to reiterate that. What I will say though is that it's very common for homes in Cape Coral to be sold fully furnished and/or turnkey, and these homes do typically sell for a premium with higher demand, so this is a market that I believe it would be advantageous to the seller to offer that as part of the sale
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Richard Elvin
Investor · Cleveland, TN · Member since 2016 · 280 posts · 187 votes
3y
@Daniel Murphy You mentioned having a rate in the low 3%. The first step I would take is to see if the loan is assumable. If it is, that's gold to an investor. If that were the case, I would then market it here on BP in the classifieds. If that failed to get me a buyer I would look email a few, local to Cape Coral, investor minded agents (look for who has sold STR properties recently) and let them know they'll get 3% if they can bring a buyer.

If the mortgage isn't assumable, then the above is mostly moot. I would then either list it myself on Zillow or sell it through an agent. I've done both and have gotten top dollar listing it myself, although this was in 2021 and everything in Bradley county TN was going over asking with multiple offers. YMMV

Best to you!
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Todd Jones
Member since 2023 · 243 posts · 199 votes
3y
Quote from @John Underwood:

I have gotten top dollar by selling my flip properties on Zillow.com and I pass the realtor fees back to the buyer.
I will pay a buyers agent a fee if the buyer feels they need hand holding, but then the buyers lose that money that I would have given to them.
I list all this in the zillow ad.
Everything is online now and everyone is checking zillow along with MLS.
How did you deal with the underwriting? The title company did it all?
0 Reply
Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
3y
I don't really have a take on this, but it's interesting that we have lots of folks here who are big advocates of self-management, but hiring a real estate "professional" to ditch your place is an absolute must.
Good stuff.
[email protected]806-672-7102
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
3y
Do you need the furniture for anything? If not, sell it furnished and list it with an agent. Try to find one who specialized in STR as they may know buyers.
0 Reply
V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
3y
Quote from @Daniel Murphy:

Hey all, I've had some unexpected life updates and am considering selling our short term rental in Cape Coral FL. It's fully furnished for an STR & has a year plus of track record plus a rate in the low 3%.
What is the best course of action with this? List it with our agent down there & sell it furnished, or unfurnished?
List it on various STR forums & try to bypass the agent?
Consider alternate financing so a purchaser could keep the low rate?
Not sure if you're asking genuinely or fishing for a sub-to or seller's finance package. I don't mean that with any disrespect. But from my understanding the fact you still have a mortgage on it, if someone took it subto/seller's finance they still have to worry about your ability to keep the mortgage whole right?
1 Reply
John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Quote from @Todd Jones:

Quote from @John Underwood:

I have gotten top dollar by selling my flip properties on Zillow.com and I pass the realtor fees back to the buyer.
I will pay a buyers agent a fee if the buyer feels they need hand holding, but then the buyers lose that money that I would have given to them.
I list all this in the zillow ad.
Everything is online now and everyone is checking zillow along with MLS.
How did you deal with the underwriting? The title company did it all?

We don’t have title companies. We use full fledged attorney's for our closings, but yes Realtors don’t do closings, they show houses and sign a contract.
Title company or Attorney does the actual transfer of ownership.
I actually do my own deeds for cash purchases. Pretty easy once you learn how.
0 Reply
Paul Smythe
Investor · Greenville, SC · Member since 2012 · 269 posts · 187 votes
3y
@John Underwood It seems like Zillow hides their FSBOs now. Have you not had an issue with that?
0 Reply
Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
3y
Quote from @Paul Smythe:

@John Underwood It seems like Zillow hides their FSBOs now. Have you not had an issue with that?

I have one listed FSBO and have not had an issue.
[email protected]806-672-7102
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