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Is 2022 the Right Time to Sell Your Property?

property market 2022

Liverpool has seen record house price growth in the last year and with limited stock on the market and Landlord Licensing arriving in the spring, now may be the perfect time to move your property on.

City Residential sales negotiator Sam McCauley asks: Stick or twist, could 2022 be the time to sell up?

The law of supply and demand tells us that if you want the best possible price and to negotiate your ideal contract terms, put your property on the market when there’s strong demand and less competition.

Well there’s not a lot of vacant stock in Liverpool city centre at the moment and prices and rents have risen dramatically.

In fact at the end of last year, specialist buy-to-let mortgage lender Aldermore’s Buy-to-Let City Tracker revealed that those people investing in Liverpool property can expect around a 7.3 percent yield.

And Liverpool has a house price growth that’s outstripping every other city, according to Zoopla, having seen a 10.6 per cent growth in the past year alone.

It’s one of the reasons why we at City Residential anticipate that a lot of landlords will be cashing in and selling up in the next 12-18 months. It’s a good time to sell and naturally, we would encourage it. No more pain and a lot to gain.

Landlord Licensing

At the start of last December, the city council was given the green light by the government to introduce a new scheme from April this year.

It may be another reason to sell now because this will come at a price – somewhere between £300 and £500 per annum – for the benefit of a licensing system that many believe they don’t need and brings them no benefit. Afterall, they already have a good agent looking after their well-maintained city apartment.

Let’s also not forget mortgage rates are on the march too, as well as agents’ fees, so it feels like the stars are aligning.

The Pros and Cons of Selling with a Tenant

They say you shouldn’t judge a book by its cover – unless you can’t read of course!
Yet, when it comes to buying a property that’s what most people do initially. First impressions count.

But if you’re marketing your property in the hope of attracting another investor then this is of secondary concern. Getting the best sale for a tenanted property is not about pastel colours, fluffed pillows and the smell of baking bread.

This is more about your tenant and the rent, so you have to look at the facts and figures. Do you have a decent tenant who pays on time and is not in arrears? This will save prospective purchasers time and money searching for the right tenant.

Is there a good strong rent on it or have you recently let it out after a good rent review? A prospective new landlord will look at the tenancy as much as the property and they will want to know that they are taking on a good investment with a good yield. They don’t want to buy problems.

If yes to the above, then selling with the tenant in situ is definitely the right move.

However, if the property has any issues or challenges, then it could prove more productive to market the property for sale while vacant. If the tenancy is at its end, then it might well be worth waiting until it runs down and sprucing it up with some simple cosmetic improvements before you put it on the market. You must also consider, should there be a fixed-term tenancy contract in place with a substantial number of months remaining, this will mean the property is not as sellable to owner occupiers and will therefore restrict your market of buyers.

The advantage of selling a vacant property to an owner occupier is that you will never have to answer: “When is the tenant moving out?”, because it could be months!

The other upside of selling an empty property is the chance to give it a bit of TLC which could improve the price too. A lick of paint, some new furniture, a bit of shake ‘n’ vac and coffee percolation, perhaps even a full-scale refurbishment will always help a sale over the line.

The downside of course is no tenant, no income. Selling apartments involves leasehold enquiries, service charges, block managements, cladding checks and more besides, which means an average sale from listing to completion can take a minimum of four months.

You should consider speaking with your agent before deciding what to do with your tenant, as they will be able to guide you in the best direction for your circumstance.

Arranging viewings

It’s imperative when selling your tenanted property to think about appointments for viewings which can be stressful for all parties. The upside of having a vacant property is that viewings are never a problem, but if occupied there are key considerations to observe.

Good communication is key, in order to reduce any anxiety or interference. Some tenants are not always forthcoming and some are worried about a change in their circumstances, while others want to be present when someone tramps round their home.

Initial communication is always better coming from a landlord, informing the tenant up front and early of any plans to sell and that an agent will be visiting to value the property. It’s common courtesy and will make the process less fraught for all.

The tenant has rights and must be given at least 24 hours’ notice and also has to give consent to each viewing. If there’s no consent, there will be no viewings until there is. We also always try to arrange block viewings to minimise disruption.

So, if you’ve done your stint as a landlord, you will be able to sell up quickly and for a very good price. City Residential is here to guide you through the pros and cons for your circumstances, give you the right advice and make the process as pain free as possible.

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