For some, selling a property has been planned from the outset and is the final stage of the investment strategy to be implemented. For others, it may to some extent be forced upon them, possibly due to excessive management requirements, the need for a major refurbishment, to fund expenditure elsewhere, reducing income, etc. And there are investors who are contemplating it as an idea, they may be seeking to re-balance their portfolio, they may be sensing the property cycle is approaching the top, they may have received a strong off-market approach, etc.
In all circumstances, an early conversation with Kingly can plan the best strategy. The conversation may initially be to assess whether selling is the best option or if there are other solutions that would achieve the intended goal. Our view of the value achievable will be at the forefront of the conversations, which may well alter as different scenarios are discussed. Should the decision to sell then be agreed upon, discussions will then include implementing any asset management strategies to enhance value, undertaking any property improvements, ensuring all surveys are up to date and consider undertaking others to aid a sale, instructing a solicitor to ensure all legal documentation is present, discuss market conditions and form a timetable.
Kingly work closely with the vendor, inspecting the property closely and reading the legal documentation to produce a long list of questions. We are then as informed as possible about the property, should we discover any matters that may impact the value or sale, we can agree on the best way to deal with it. When we are selling the property to potential buyers, we will know the answers to most questions.
Kingly will advise on what we believe will be the best marketing strategy to maximise value in the timescale required to sell the property. This may be a targeted sales approach to a handful of potential buyers or more often than not, it is the implementation of a full marketing campaign to all active investors and agents. Suitable marketing material will be produced, Kingly are big fans of clear concise sales details and then the sales process begins. In our minds, nothing beats picking up the phone and selling the asset. We want to maximise the chances of the best potential purchasers all inspecting the property. Our inside-out knowledge of the property, locality and nearby projects gives the asset the best chance to be attractive to potential purchasers.
An important, exciting and often tense part of the process is extracting the highest possible offer from the interested parties on terms that we would be prepared to work with. Selecting the party that will do what they say is paramount. There is then a high correlation between how good the preparation of the sale was some time ago to how smooth the process moves to exchange and completion of the sale. However, it isn’t uncommon for matters to arise as a result of unforeseen or external factors, which need to be dealt with appropriately, otherwise agreed terms can change or even transactions fall apart.
Once complete, there may be relief or even surprise, but there should also be smiles and more than a good reason to toast the transaction.