Investment Property Sales
Residential | Student | PBSA | Commercial
How are we different?
Our expert sales team are specialists at selling investment properties. Due to the expert knowledge within our team, and our completely transparent approach, both buyers and sellers benefit from high completion rates as we’re able to avoid many of the pitfalls which can cause sales to fall through.
Because we live and breath investment property, we know how to value it properly, how to market it correctly, and how to avoid the pitfalls of down valuing and make sure we have the correct documentation to enable a sale to complete. Find out more below.
If you’re looking for properties we have for sale now, click here.
The right valuation
Selling an investment property is more like selling a business than selling a home. When standard estate agents value a property, they will look at comparable properties and recent sales alone to try to assess value and they may well miss important factors which may enhance the value of a property.
HMO properties can offer potential for development or improvement to increase revenue for ingoing buyers, knowing where these potential enhancements are possible and a rounded understanding of their impact or not, significantly impacts market value.
Also key, is an on-point knowledge of changing market factors such as return on investment percentage calculations and rental capabilities. Experienced investment property agents are able to help potential buyers understand the investment opportunities.
The right marketing
Frustratingly, most HMO properties are advertised for sale with incomplete or no details of tenancies or income which is off putting for potential investors who need to understand in detail, the anticipated financial outcome of an investment and the required strategy for successful and profitable future letting.
A specialist agent will not only make sure the information investors need is provided, but that it’s put in front of the right people; specialist agencies like Purple Frog serve the investment market and that keeps us focused on the right detail. It also means that our marketing is pinpoint and our mailing list is 100% built from investors.
What’s more, to reach the fullest market, consideration has to be made for individuals who live a distance away from where they want to invest. This applies to the wider London and South East market as much as it does to buyers that are based abroad.
In order to effectively sell to these markets, there needs to be clarity of information, from where trust can be built. We’re particularly proud to be constantly forming good relationships with companies and individuals that find it difficult to personally view property or easily understand the investment from a distance.
Managing Valuation Discrepancies
Banks and surveyors don’t value properties the same way property investors do; they have to value a property based on what they think it would sell for if it was not an investment property; in most cases, and particularly with HMOs, the valuation provided by a bank or RICS surveyors will be lower, sometimes significantly, than the sale price agreed. This can lead to renegotiations or collapsed sales if not handled correctly.
The team at Purple Frog ensure buyers are aware for the potential for undervaluation and rather than asking for the standard proof of funds at a rate of 25%, we ask for higher or appropriately tuned proof of funds to overcome low bank valuations and to incorporate stamp duty costs.
If a buyer can’t bridge the gap between a valuation and agreed sales price, then they are no longer able to proceed with a purchase. We anticipate all of these factors to avoid wasting the time of our clients and investors.