How to sell investment property quickly to raise cash. Sounds perfectly straight forward doesnít it? But make no mistake. ALL forms of property transactions are impacted by the economic climate. And this will also include the sale of your investment property. If youíve owned your property for four years or more, you should do very well. But things can still go wrong.
Trying to sell an investment property is not the same as selling your own home. You have to plan rather differently. The following cautionary tale illustrates that you could well end up with a non income producing asset stuck on the market.
Callum knew how to sell his investment property quickly. He made sure the flat was empty Ė he didnít renew the tenants lease. He then completely redecorated the flat Ė and the communal close. All text book things to do.
His investment property has no mortgage on it, so leaving the property empty for a few months wasnít going to trouble him money wise. He also knew from speaking to solicitor estate agents that some were not keen to market a rented flat.
How to sell investment property when time is tight
In March 2010 he put his Edinburgh investment flat on the market and got an asking price offer almost immediately. A sellers dream. However it was only another three weeks before bad news came through. His buyerís mother had terminal cancer and the deal was off. Back to square one. Time slips by and because the housing market weakens in the run up to the Government's cost cutting Budget Callum is now under more pressure to sell as he needs to raise funds to pay international student fees. The money he needs can only come from the sale of the flat. Callumís problem has now become how to sell when he's lost his buyer.
Callum's first thought is to ask his espc solicitor for advice. The solicitor suggests dropping the price, completely missing the fact Callum needs to sell.
Now, if Callumís original offer hadnít fallen through heíd be home and dry: his sale with the agent would have been well within his deadline. As it is, heís now well and truly stuck. It is now only six weeks until the date the fees must be paid. As Callum said to us, ĎI thought Iíd be able to sell in good time. I was expecting to sell quickly after all the effort I put in, but I didnít plan for our sale to fall through. I have now come to the conclusion that selling is not as straightforward as I thoughtí.
Itís quite a wake up call to find you need to raise cash quickly through no fault of your own. You should definitely try to sell through agents if you can, but you may need a back up if that plan falls through either because offers are slow to come in or something goes wrong.
Six weeks or less isnít long if the stakes are high and you must sell.
Thankfully if a sale through an agent falls through, there are alternatives to try. Finding out how to sell investment property quickly isnít just about fast cash or best offer. Itís really about how you align the two to fit in with your circumstances.