What are the Options for a Landlord Selling a House
Why would a Landlord wish to sell
Many would be surprised to hear that landlords are looking to sell their property. Particularly with super low interest rates, an increase in tenants and the future prospect of capital appreciation. However, here at You Sell Quick we get many enquiries from landlords wishing to off load some of their portfolio every day.
There are a variety of different reasons as to why a Landlord would be looking to sell their property fast. From needing to release cash for expansion of their portfolio in other areas, to other investments, or on the opposite end of the scale they may be struggling with a particular property that is a problem house. Maybe the investment doesn’t yield i.e. the mortgage payments are higher than the market rent. It is also a common scenario that the owner is simply a tired landlord and doesn’t want the burden of looking after tenants and is motivated to sell up.
What options does a Landlord have
As an exit strategy, in order to make the most out of their investment a landlord would be unlikely to sell their investment at a discount or a loss. Of course a normal sale on the open market through an estate agent would be an ideal scenario. Unfortunately, in today’s tough economic times a quick painless sale through traditional routes is difficult to achieve and even if it is sold to a normal buyer there is still likely to be a discount involved. Other options such as going to an auction could also result in the property being off loaded but often at a cost of around 30% – 40%. It is unfortunate that many would be prepared to take such a loss without researching all the other available solutions.
On-line House Buyers can offer favourable solutions
More favourable terms can be achieved when selling to a house buying company who is effectively a like minded investor. A shared ownership scheme could allow a landlord to sell the large portion of their home for often 60% cash and at the same time retain all the remaining equity as a further property investment. Technically you are achieving the full market value for the majority of the home and keeping the rest as an investment. By selling part now and part later not only could this enable sellers to achieve a great price now but also still have the opportunity to profit from capital appreciation in the future.
This method is often fully insured and managed so the tired landlord could technically retire and still have his money tied up in his original long term investment. For those who are looking to achieve an even greater initial price and completely off load their investment the Internet house buyers can offer far higher market values then what you would expect from the likes of an auction. It is important note that a seller should shop around and try to find the most favourable solution for their situation. Also, try to gain quotes before lowering the price of your house on the open market as this will establish a new 100% market value that house buyers will use to calculate their offers.
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