5) This in-depth report will teach you all you need to know about selling a buy to let property portfolio via an "Estate Agent" - - - - -

sell your portfolio

​via an estate agent

  all the pros and cons below  

​selling a tenanted property portfolio

can an estate agent sell a tenanted property portfolio?

​8 minute read

​Introduction

A tried and trusted ​way ​of selling ​a SINGLE TENANTED PROPERTY is ​to sell via an estate agent - so you may be wondering if it's also possible to sell your ENTIRE TENANTED PROPERTY PORTFOLIO via an estate agent?

We​ll yes it's totally possible for you to sell your entire property portfolio via an estate agent. ​So let's take a look​ now at ​the things you ​should ​be doing - to ensure this works well for you:

You probably spent a good deal of time with estate agents when you first put your portfolio together. And you're possibly still on good terms with one or two of them?

So it may be worth visiting a few agents (including your favourites). And asking whether they'll be able to sell your entire portfolio.

Please bear in mind that it will be quite expensive to sell an entire portfolio via an estate agent - with all those commissions to pay​. However you might be able to negotiate some ​sort of a discount?​

Sell your property portfolio

  • ​No Fees
  • ​Less Tax

how to select your estate agent

One thing you should definitely do when you sell a tenanted property portfolio is to visit a number of estate agents and tell them what you're planning.

Their eyes will probably light up when you mention the number of properties you want them to sell for you. You're not just asking them to sell 1 property - but maybe 5 or 7.

And to be totally honest most estate agents won't be suited to selling multiple properties in one sitting for one client.

But some will be able to - so keep looking and keep asking.

Selling your portfolio via an estate agent will work best when your portfolio is on the smaller side AND ​when your properties are located in the same geographical area as your agent.

sell a tenanted property portfolio questions

​estate agents - asking the the right questions

Here's ​a number of great questions ​to ask estate agents - to see if they ​can handle the sale of the properties in your portfolio:

  1. Past Portfolio Sales - Has the estate agent sold a property portfolio for anyone else in the recent past? If YES - can they give you details​. If NO then I'd advise you to leave.​
  2. Potential Buyers - Do they ​know any potential portfolio buyers​ ​that will be interested?
  3. Capital Gains Tax - Do they have a mechanism for selling your portfolio over a number of years to reduce your Capital Gains Tax​ - and can they manage this ​for you?
  4. Marketing - How ​will they market your portfolio? Online property selling websites such as Rightmove, Zoopla and OnTheMarket etc aren't best suited to selling ​portfolios.​
  5. Valuations - ​Ask for ballpark property valuations. Do their valuations seem credible? Are they in line with your own research? And other agents?
  6. Selling Fees - Ask them about their fees and whether they do any sort of discount for bulk properties?

negative equity property

You'll need to be careful if you have any negative equity in your portfolio. Because you'll end up owing the banks more to pay off your mortgages than your sales will bring you.

So you'll end up making up the shortfall between the price your properties sell for - and the outstanding mortgages.

Negative equity example - buy to let mortgage

  • ​Property purchased in 2007 for £100K.
  • Purchased with 85% loan to value buy to let mortgage - £85K borrowed with £15K deposit.
  • Upon a sale the owner will always owe their lender £85K.​ Interest only mortgage.
  • Property sells today for £80K. As condition of sale - the lender needs to be repaid £85K now to release the property title deeds to new owner.
  • Seller needs to add their own £5K to the £80K raised from the sale to make £85K in total. To pay back lender.
  • Ouch!!

​Reduce your capital gains tax on buy to let property sales

You'll also need to consider your Capital Gains Tax position very carefully if you're going to be selling multiple properties ​at the same time.

You can avoid a high Capital Gains Tax bill by liaising with your accountant and / or Independent Financial Adviser (IFA) long before you begin selling. And then following their advice on a strategy that utilises your allowances and minimises your tax.

This will probably involve selling your portfolio over a period of time. For example by selling 2 properties this year - then 2 next year - and so on.

So the question is "can your estate agent structure the sales in such a way to reduce your Capital Gains Tax bill?"

sell a tenanted property portfolio negative equity

​pros and cons - ​selling portfolio via estate agent

​Pros

  • Property knowledge
  • local market knowledge
  • existing buyer contacts
  • Marketing expertise
  • take enquiries and viewings
  • provide valuations

cons

  • High selling fees
  • Buyers Demanding discounts
  • High Capital Gains Tax to pay
  • inexperienced with portfolios
  • No negative equity purchases
  • No marginal profit portfolios

​sell a tenanted property portfolio - conclusions

You should explore every possible option when you sell your tenanted property portfolio. Because that way you can weigh up all the pros and cons of each of the options.

Selling via an estate agent is one such option that could work well - if ​you can find an estate agent who has prior experience ​in selling portfolios.

However even if estate agents do have some prior expertise then they'd probably be better at selling smaller portfolios​.

And also portfolios ​where properties are located in the same geographical area and ​close to where the estate agent is located.

Sell your property portfolio

  • ​No Fees
  • ​Less Tax

Property Portfolio Sales - Getting in touch

Thanks for reading our website.

If you'd like to learn more about selling your property portfolio to Property Portfolio Sales - then please ​get in touch for an informal chat​.

​Contact us via: ​EmailContact Form 0800 77 234 88 - WhatsApp​ - whichever you prefer.

​You can ​tell us about your portfolio​ - ​and then together we can ​look at ideas on ​possible ways for you to sell.

Kind regards.

property portflio sales phil calladine

Phil Calladine - proprietor & consultant

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Phil Calladine
 

"Hi there - I'm Phil Calladine - living in Lymm in Cheshire, UK. I have a wealth of property knowledge - and I'm sharing it with you here on this website. I'm also a member of the NRLA. Please don't hesitate to contact me with any questions about selling your property portfolio"

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