If you have decided to sell off your property portfolio, we have put together some quick tips to help you achieve your investment objectives.
Assess your portfolio
Begin by evaluating your entire property portfolio. Determine which properties you wish to sell and consider factors such as location, market value, rental income, and potential for appreciation.
Get help
Seek advice from estate agents – they can provide valuable insights into market conditions, pricing strategies, and the sales process.
How many agents should I use?
This really depends on what you feel comfortable with.
An agent offered a sole agency, for example, may be able to quote a cheaper rate of commission in the property is sold within the term of your contract with them – typically a period of between 8 and 12 weeks. If you make the wrong appointment, however, you are effectively stuck with that agent for the duration of the contract – and if any property in your portfolio is sold by another agent during this period, you still need to pay the sole agent’s commission.
The multi-agency approach allows competition between those agents you choose to instruct and the commission is paid only to the agent who successfully sells your property – so rates of commission tend to be higher.
You might want to beware of instructing too many agents, however, since a proliferation of marketing attempts for the same property may give buyers the impression that you are desperate to sell – and the offers you receive are likely to reflect that impression.
Prepare your properties
Prepare your properties for sale by ensuring they are in good condition and making any necessary repairs or upgrades to enhance their appeal to potential buyers. Consider staging the properties to showcase their full potential.
Set a competitive price
Determine the asking price for each property based on its market value, comparable sales in the area, and your financial goals. Price your properties competitively to attract potential buyers and maximise your return on investment.
Viewings
- if you have a whole portfolio of properties on the market, you are unlikely to want – or even have the time for – managing viewings entirely on your own;
- indeed, this is a valuable part of the service likely to be offered by any estate agent worth his salt;
- nevertheless, remember that you still have an interest in making the agent’s job as easy as possible and granting viewings to suit their schedule rather than your own – the agent still needs to be able to communicate with you;
Offers
- one point that is especially relevant, of course, once offers start to come in;
- the agent’s job involves rather more than simply receiving an offer and passing it on to you – there is a lot of information, relevant to the buyer’s ability to pay and when the sale might be completed, which you need the agent to collect on your behalf;
- although you may reasonably expect your estate agent to play an active part in negotiating with potential buyers, beware of granting any permission for the agent to reveal how much you might be prepared to accept as a purchase price – it is likely to be used by the buyer as the new negotiating price;
Manage the sales process
Throughout the sales process, stay organised and proactive in managing the sale of your property portfolio. Keep track of important deadlines, paperwork, and communication with buyers, agents, and other parties involved in the transaction.
Scruples
- one final decision might be seen as testing your scruples as a property dealer;
- once an offer has been made and accepted, do you then withdraw the property or properties from the market or stand by the principle that nothing is certain until contracts have been exchanged in the hope of receiving a higher bid? The choice is yours of course.
The sale of a property portfolio is not something you are likely to want – or are capable of – taking on by yourself. If you intend seeking the relevant professional help of an estate agent or agents, you might want to keep in mind some of these tips and suggestions.
