What's the best strategy to find a buyer for a STR?

Question

I am looking to sell a STR, Are there buyers who buy a fully furnished property? or do I need to empty it? What should be right way to find these investor buyers in the market? I am out of state and don't know a lot about the Jacksonville market today.

The property also has firepit in the backyard, smart door lock, cameras, thermostat, and router installed. The appliances are also all brand new installed this year- fridge, dishwasher, and washer/dryer.

John Underwood · Answer

I bought my last furnished vacation rental off MLS. If you want top dollar you should list here and everywhere such as FB marketplace FB groups, Zillow, Craig's List etc.

You want to stir up a bidding war.

Tanner Lewis · Answer

Hey Deepanshu - you would likely need to state that all personal property being sold has no transfer value or have a separate contract for the sale of the furnishings. This depends don't the lender, and you can honestly just amend the PSA if needed.

Ricky A. · Answer

TLDR:  I'd say don't empty it until you know it needs to be emptied.

Distilling your post, I see it as 1) you want to sell a property and 2) you see the existing furnishings as a liability.  #2 is probably not true.

Scenario 1 - Someone wants to buy it to use as an STR:  Someone wanting to continue to use it as an STR definitely wants it to already be furnished.  Even if they don't like everything, for the buyer, it's easier/cheaper to replace a few things than to have to furnish from scratch.  I've purchased 3 furnished STRs, and the math definitely would have been different having to furnish them from head to toe.  Sure, we changed certain things, but it was way cheaper than starting from scratch.  Where do STR buyers tend to look for properties? On the MLS (whether via an agent or via Realtor/Zillow/Redfin), so that's where you need to be.

Scenario 2 - A homebuyer looking for a primary:  This is most common (except maybe in vacation markets).  Typical homes are being sold by a family that's living there, and they'll move after it's sold.  So people are expecting to see personal property in a house and don't expect it to convey.  Often, they'll see something that they want, and want that included.  This becomes a negotiating point...maybe you can add some $$$ to the purchase price or get some other negotiating point or goodwill.  So what you're seeing as a liability might be something that you can turn into more $$$ during the negotiation.  They may want something and ask, or you can offer to leave things for $$$.  Where do homebuyers start their searches?  On the MLS (whether via an agent or via Realtor/Zillow/Redfin), so that's where you need to be.

In short, I'd try to get more $$$ out of the furnishing by adding them into the deal instead of looking at them like things that I need to spend money to get rid of.

Michael Baum · Answer

Hey @Deepanshu Madan. So I think you should try and sell it the way it is.

I will say after much study and chatting with a dozen lender, no one will lend more than comps show on a working STR vs a standard home.

So list the house as a house and then work out a deal on the furnishings etc.

Bruce Woodruff · Answer

There are always potential buyers for a vacation home, or just for a furnished house. I sold one of mine last year to a gentleman from out of state who needed to do a 10:31 exchange, and he ended up just moving his son into the place

I would recommend advertising on local and even out of state Facebook groups. If you search you will find that most cities have groups specifically oriented towards vacation rentals. Put it on there first before you even contact a realtor, you might get lucky and sell it, and avoid half the commission, who knows?

Sarah Kensinger · Answer

If you're in FL I would sell it furnished and advertise it as a STR. But also advertise it for a local family to purchase as well. You never know who might come along interested in purchasing the property.

Nathan M kiefer · Answer

Rabbu isnt horrible

Jay Seville · Answer

Almost all STRs that my investors buy come fully furnished in the local MLS.  Many of these buyers have 2-7 transactions buying STRs in the MLS.  95% of the time the homes come furnished.  Do now hire a "regular" realtor.  Hire one that is heavy into STRs. They will have regular list of investors they work with and speak their language. The STR realtors sells the home taking advantage of the potential gross income even if you had not maximized your rental income yet previously.  They sell the investor aspects that make the home higher than regular market value in many cases :)

It is pathetic to see non vacation rental realtors butcher good listings.  They often do not even know what the home could rent for if x, y z was done to the property and they have no rental projections uploaded into the MLS.  Get the right realtor and get in the MLS so that more investors can find your home.

Andrew Steffens · Answer

In addition to owning a STR PM Company I am also a broker who works exclusively with STR buyers in the nearby Tampa area.

My buyers love buying turnkey/performing rentals.  In fact I am closing on one today :)

I would highly suggest listing in on the MLS with an agent and offering it furnished.  Also have your financials ready.

I know a wonderful agent who is STR savvy in that area, DM me and I will set you up with her.

Good luck!

What's the best strategy to find a buyer for a STR?

Most Popular Reply