How to sell an investment property by auction
The decision to sell your investment property is a significant one, and choosing the correct method of sale is essential in ensuring you get the best return on your investment.
With decades of experience selling on behalf of property developers and investors, SDL Property Auctions are experts in making a sale as profitable as possible whether it’s a residential property or commercial unit, if it’s tenanted or vacant.
Here are our top tips for how to approach selling a property by auction and making the most of your investment.
So, what do we mean by investment property? As the name suggests, an investment property is purchased to generate a profit, instead of simply being the residential home of the owner. There are many different types including:
- Buy-to-let
A residential property let to tenants for a rental fee to the landlord. Buy-to-let properties can be sold by auction either with a tenant in-situ or vacant, there is an appetite from buyers for both.
- Holiday let
As with buy-to-let properties, holiday lets are rented out to generate income for the owner. The rental contracts are often shorter for holiday lets, with tax rules limiting the length of stays.
- Commercial properties
The most popular type of commercial properties tend to be offices, retail units, restaurants or pubs, however they can extend to warehouses and industrial spaces too.
- Development properties
Auctions are particularly popular with developers looking for a renovation project or opportunity to add value to a property needing refurbishment. Some properties sell with planning permission already granted, many don’t have that in place but it doesn’t reduce the interest levels from prospective buyers.
- Renovated properties
Investors like renovation properties as they can purchase, refurbish and ‘flip’ their purchase for a profit. We often have several renovation properties attractively priced because of the work required.
- Vacant investment properties
Properties without existing tenants in place can often make the sales process easier as there are no occupiers to impact the viewings and there’s no possibility of delaying the sale as no one is required to leave. It’s possible to start marketing a property for sale while tenants are in place, provided they have been given notice to leave before the sale takes place.
- Tenanted investment properties
Many landlords look to purchase properties with existing tenancy agreements as it gives them a ready-made income as soon as they get the keys so buyer interest is often high. Having tenants in place might lead to restrictions for viewings or problems, however by keeping a good relationship with your tenants should ensure a smooth transition.
Selling any type of property by auction is quick and faff-free and offers certainty with exchange of contracts on the fall of the hammer. Our experienced team works hard to achieve a smooth sale and a health profit for our sellers.
