Tips for Achieving the Best Selling Prices for Buy-To-Let Properties

If you are a landlord thinking of cashing in on your investment, you’ll want to achieve the best possible selling price. Read on for our top tips, which will help you get the very most for your money if you feel that right now is the best time to part with your investment.

1. Don’t forget the basics

Declutter, repair, decorate, upgrade and make every viewing count, just as you do to attract new tenants. This is essential, because first impressions can quickly form – whether justified or not – regarding the suitability of your property. Ensure that positive opinion swings towards your buy-to-let investment and puts your sale in a good position.

2. Get up to date with your local property market

Compare your place with similar properties. Get valuations and advice from local estate agents. Are properties selling fast or lingering on the market? Are vendors having to lower prices to sell their properties?

3. Choose your estate agent with care

Choose an estate agent based on the agent’s track record of achieving the best-selling prices for properties like yours. This is essential, ensuring that the pricing strategy attracts the right buyers, yet is not so high that it creates minimal demand.

4. Tenanted or vacant?

There’s no one-size-fits-all answer as to whether it’s financially more lucrative to sell with tenants in situ or with the property empty. It is more expensive to sell once the tenants have gone because you’ll have to foot all the bills without the help of rental income. On the plus side, you may achieve a higher selling price because only investing landlords will want to buy a property filled with tenants. Their need for profit may make them offer less than the property’s true market value.

The presence of tenants certainly complicates the logistics of the sale. The buyer will need to be satisfied about everything from deposits, tenancy agreements, inventories, and safety certificates to the character traits and habits of the tenants.

You’re playing a balancing game. Either you lose the tenants and gamble that the bills will be covered by the better sale price, or you keep the tenants and risk a lower sale price, but fewer outgoings – and more hassle.

Consult your estate agent for the best advice for your particular situation.

5. Timing of your sale

If you decide to sell with tenants in situ, choose your timing carefully. Trying to sell with new tenants whose tenancy agreement prevents them from being asked to leave will not get you the best sale price.

The profits on the sale will be liable for Capital Gains Tax, so choose a year when you don’t have other significant CGT liabilities, or they’ll eat into the sale price you’ve just achieved.

6. Choose your asking pricing strategy

One school of thought advises setting a high asking price and reducing it gradually if the property doesn’t sell. Another school of thought warns that properties attract the most interest in the first month on the market so you’ll achieve a better selling price by setting a low asking price. That way your property will attract more potential purchasers who will – hopefully – engage in a bidding war.

Since every situation is unique, discuss your pricing strategy with your estate agent. They will know the current market and can assess what will work best for you.

7. Don’t rush to accept an offer

Agents are legally obliged to tell you about every offer, but you don’t have to accept. The agent will advise you whether it is likely to give you the best selling price or whether you should wait. High offers frequently come from unreliable potential purchasers. Ensure you examine the whole situation. For example, certain buyers may be able to pay in cash, be chain-free or be in a range of other positions which may present an advantage to your sale.

Get in touch

Estate agents are crucial to achieving the best possible selling price. If you’re selling a buy-to-let property in Tooting or the surrounding area, find out more about our selling services.

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